Lovell Minnick Partners Announces the Sale of First Allied
Radnor, PA, June 11, 2013 – Lovell Minnick Partners, a leading private equity firm focused on investments in the global financial services industry, announced today that is has signed an agreement to sell First Allied to RCAP Holdings, a firm focused on direct retail investments. First Allied, together with its subsidiaries including The Legend Group, serves over $32 billion in assets across 300,000 clients, 1,500 independent financial advisors and 500 branches in the United States. First Allied’s core value proposition centers around driving advisor efficiency and productivity, which has resulted in the company being a perennial leader in average advisor production. Following this transaction, First Allied, The Legend Group and their subsidiaries will continue to operate autonomously under the current management structure and will maintain their respective brands as part of the RCAP Holdings’ family of companies.
Robert M. Belke, Managing Director of Lovell Minnick Partners, commented, “We have enjoyed a strong partnership with the First Allied team over the years and we wish them great success in the future. We also have tremendous respect for RCAP Holdings and expect it will be a valuable strategic partner to First Allied going forward. This transaction reflects our belief that a profitable exit from an investment makes sense when it brings together companies with complementary competencies. We believe the combined First Allied and RCAP Holdings businesses will be well-positioned to create substantial future value for all stakeholders.”
Adam Antoniades, CEO and President of First Allied, commented, “We benefited from a successful partnership with Lovell Minnick, during which time we saw transformational growth in our business, ultimately driving to this step in our evolution as a firm. We are excited to join RCAP Holdings and its family of companies, where we believe our advisors will benefit from immediate access to a well-capitalized platform tailored to provide mass affluent, emerging high-net-worth, and retirement-focused investors with the next generation of industry-leading investment solutions focused on durable income and principal preservation. Both First Allied and Legend advisors can expect RCAP Holdings and its management to further support their trusted relationships with their clients by maintaining an unwavering commitment to providing unbiased, objective advice through our client-focused model.”
Nicholas S. Schorsch, CEO and Chairman of RCAP Holdings, commented, “We see value and opportunity for growth in a paradigm shift toward a sustainable direct relationship between the mass affluent investor and their independent financial advisor. The acquisition of First Allied gives RCAP Holdings a top-notch management team – in our view, one of the premier independent teams in the industry. Our value-add to First Allied is in being the best financial partner we can be, while also providing strategic insights and direction where we can be helpful.”
About Lovell Minnick Partners
Lovell Minnick Partners LLC is an independent private equity firm providing buyout and growth capital to companies in the financial services industry. From offices in Philadelphia and Los Angeles, Lovell Minnick manages private equity partnerships with committed capital totaling over $850 million. Portfolio companies of Lovell Minnick operate in various areas of the global financial services industry, including asset management, banking, specialty finance, financial product distribution, securities brokerage, financial consulting services and specialized outsourcing solutions. For more information regarding Lovell Minnick Partners, visit www.lovellminnick.com.
About First Allied Holdings
Headquartered in San Diego, First Allied Holdings Inc. operates an independent retail broker/dealer that serves as the firm of choice for independent financial advisors seeking to grow their businesses. First Allied’s exclusive business development platform has been expertly constructed to provide entrepreneurial advisors with the industry’s most comprehensive platform for growth. Dedicated to providing independent financial advisors with a competitive edge, First Allied empowers advisors to successfully compete and win the battle for high-net-worth and ultra-affluent clients. First Allied’s subsidiary companies provide brokerage, investment advisory, asset management, insurance, retirement plan design, technology, training and support services to financial advisors nationwide. First Allied’s subsidiaries include The Legend Group, a specialized provider of investment and retirement solutions to the not-for-profit space, including 403(b) accounts. For more information about First Allied and The Legend Group, visit www.firstallied.com and www.legendgroup.com.
About RCAP Holdings
Based in New York, RCAP Holdings, LLC focuses on the retail direct investment industry and owns a direct majority economic interest in Realty Capital Securities, LLC, a FINRA registered wholesale broker/dealer and an investment banking and capital markets business, American National Stock Transfer, LLC, an SEC registered transfer agent, and RCS Advisory Services, LLC, a transaction management services business.