Private equity firm Genstar Capital LLC entered into a definitive agreement with Aretec Group Inc. to take majority equity control of the investment advice network Cetera Financial Group Inc., a unit of Aretec Group.
The transaction is expected to close late in the third quarter.
Cetera will continue to operate under a multi-affiliation structure through two core channels of traditional and specialty that together serve the independent adviser businesses and financial institutions.
For this investment, Genstar has put together a board of directors to guide the company's strategic direction. In addition to Robert Moore, CEO of Cetera, Genstar representatives will include Tony Salewski and Sid Ramakrishnan as well as Ben Brigeman, former executive vice president for Charles Schwab & Co. Inc., who led the company's individual investor business, and Hal Strong, former vice chairman of Russell Investments.
Goldman Sachs & Co. LLC served as Cetera's financial adviser for the transaction, while Skadden Arps Slate Meagher & Flom LLP served as the company's legal counsel.
For Genstar, UBS Investment Bank and Deutsche Bank Securities Inc. served as financial advisers, while Willkie Farr & Gallagher LLP served as legal counsel.