Skip to Main Content
SUBMIT A TIP RECEIVE DAILY NEWS
Menu AdvisorHub
  • News
      • Latest News
          • Ralph Hamers, CEO of UBS Group AGUBS Wealth Americas Profit Hits Record with Fewer Brokers
          • DealsHightower Takes Stake in $830 Million New York RIA
          • Business DealCI Financial Buys Chicago RIA and Asset Manager Overseeing $23 Billion
          • Finra signFinra Bars Ex-Merrill Broker Kenahan After Record NH Settlement
        • Close
      • Advisor Moves
          • Boca Raton, FloridaRockefeller Lures Two Florida Teams with $9.8 Mln Revenue
          • Morgan Stanley, UBS Advisor movesMorgan Stanley Rehires $3.3-Mln UBS Team in North Carolina
          • Lars Olson of Sanctuary Wealth Partners in Marion, OHSanctuary Hires $435-Mln Merrill Team, Snowden Lures Another from Retirement
          • Stifel Investment CompanyStifel Hires 33-Year Brokerage Vet from Jefferies in Dallas
        • Close
      • Enforcement
          • Advisor MoneyWells Fargo Recoups $2.5 Million from New Jersey Duo
          • Businessman in prison, fraudWells Fargo Claws Back $3 Million from Jailed Ex-Broker
          • Finra signFinra Fines, Supends Ex-Ameriprise Broker Who Flipped ‘A’ Shares
          • Barred from the securities industry.SEC Puts Nail in Ex-Morgan Stanley Broker’s Career Coffin
        • Close
      • Markets
        • `Nothing Safer Than Cash’: Tech Rout Puts Silicon Valley on Edge
        • ‘Any News Is Bad News’ as Earnings Fail to Save Equity Bulls
        • ‘50 Cent’ Profited From Volatility Jump, Wells Fargo Says
        • ‘Beaten Down’ ETF Is a Way to Play Inverted Curve, BofA Says
        • Close
      • Opinion
          • Opinion-How-Will-The-Coronavirus-Affect-The-Stock-Market-Opinion: Coronavirus – What Advisors Need to Know
          • opinion-investors-conquered-fees-next-up-is-their-own-behaviorOpinion: Investors Conquered Fees but Not Their Own Behavior
          • Investor-Confidence-In-Stocks-Rightly-Declines-Opinion-772x485Investor Confidence in Stocks Rightly Declines: Opinion
          • Opinion-Schwabs-Zero-Commission-Decision-Challenges-Its-Ria-ClientsOpinion: Schwab’s Zero Commission Decision Challenges Its RIA Clients
        • Close
      • Fintech News
          • System outageMerrill Systems Hiccuped on Thursday as Stocks Slid
          • 7 dollar rolls‘The Rock’ Invests in Finance App Acorns, and New Users Get $7
          • TraderHigh-Frequency Traders Love Business With Robinhood
          • EtheriumJay Z, Charles Schwab-Backed Ethereum App Opens Doors to Public
        • Close
      • From the Publisher
          • 2021 PredictionsFrom the Publisher: Sirianni’s Predictions for 2021
          • Josh Rogers – 772×485Seven Questions with Tony Sirianni: Josh Rogers, Founder and CEO, Arete Wealth
          • Phil Hildebrandt — 772×485Seven Questions with Tony Sirianni: Phil Hildebrandt, Principal, CEO of Segall Bryant & Hamill
          • Christian Hyldahl, President of Varium Investment Partners-772×485An AdvisorHub Interview with Christian Hyldahl, President of Varium Investment Partners
          • John Peluso – 772×485Timely interview with John Peluso and AdvisorHub CEO Tony Sirianni
          • Louis Dworsky Coronacrash Interview-772×485Coronacrash Update: Hayden Royal’s Louis Dworsky & Tony Sirianni
          • Stratos_Jeff pic.jpg-772×485Coronacrash Update: Stratos Wealth Partners’ Jeff Concepcion & Tony Sirianni
          • coronacrash ben harrison – 772×485Coronacrash Update: BNY Mellon | Pershing’s Ben Harrison & Tony Sirianni
        • Close
    • Close
  • Deals & Comp
  • Recruiting Wire
  • Breakaway Center
  • Resources
    • resources-home-menuResources Home
    • PRACTICE MANAGEMENT RESOURCESPractice Management Resources
    • Transition ResourcesTransition Resources
    • Fintech ResourcesFintech Resources
    • menu fintechFintech Product Directory
    • Menu-Institute-772×485Institute
    • Boutique Wealth AdvisorsBoutique
    • EventsEvents
    • Asset Manager Hub
    • Close
  • AdvisorHub TV
  • Podcasts
  • RIA Center
  • Virtual Summit
close X
January 8, 2020

Advisor Group Primes Ladenburg Brokers with Post-Merger Partnership Offer

by Jed Horowitz
|
News
|
Advisor Group, Ladenburg
|
No Comments
Share This
SUBMIT A TIP
Advisor-Group-Primes-Ladenburg-Brokers-With-Post-Merger-Partnership-Offer
Siberian Photographer/IStock/Getty Images

Advisors at Ladenburg Thalmann Financial Services’ five independent broker-dealers whose production numbers indicate they would qualify as “accredited investors” are receiving emails saying they will be able to buy limited partnership interests in a new parent company once Advisor Group acquires Ladenburg.

Advisor Group, which is controlled by private equity firm Reverence Capital Partners, is not expected to give retention bonuses to Ladenburg’s approximately 4,400 independent brokers, making the planned offering in the holding company that will be called AG Artemis Holdings a potentially important tactic.

“Based on your GDC, we believe you qualify as an accredited investor and, as a valued advisor affiliated with the Ladenburg Thalmann companies, in connection with the close of Advisor Group’s purchase of Ladenburg Thalmann, you may be offered the opportunity to invest,” according to emails that Artemis began sending to advisors on Monday. GDC, or gross dealer concession, is the revenue from sales of annuities and other investment products that independent brokers generate for their parent firms.

The notices, which Ladenburg disclosed in a proxy statement with the Securities and Exchange Commission on January 7, ask advisors to respond by January 14 with preliminary indications of interest about becoming limited partners, with a minimum initial investment of $75,000.

Similar emails are being sent to an unspecified number of Ladenburg employees, based on their income rather than GDC, with a minimum investment of $25,000.

The filing did not say how many advisors and employees are receiving the emails, which ask them to respond with their “non-binding indications of interest” pending a formal offering memorandum. It also did not disclose if they are receiving any insider incentives to participate.

Recipients will be able to fund their partnership purchases with cash or proceeds from selling common shares of Ladenburg in connection with the acquisition closing. “Please also provide us with information on the number of shares that you own so we can provide you with additional information about funding logistics,” the forms say.

Spokesmen at Ladenburg and at Reverence, which is owned by former Goldman Sachs financial institution group investment banker Milt Berlinsky, declined to comment beyond what was disclosed in the proxy statement. Spokespeople at Advisor Group did not respond to requests for comment as to whether advisors at its four broker-dealers are receiving similar partnership opportunities.

Publicly traded Ladenburg has about 148.7 million shares of common stock outstanding. Since word of Advisor Group’s planned acquisition leaked on November 1, shares of Ladenburg have jumped 53%. They were changing hands at $3.46 Wednesday afternoon, up from $2.26 at the close on Oct. 31.

At least five investors have filed individual or purported class-action lawsuits seeking to prevent the merger. Four assert that Ladenburg’s merger offer proxy statement omits material information on projected earnings and on how bankers determined the fairness of Advisor Group’s offer price of $3.50 a share.

A fifth suit seeking to rescind the deal was filed by Phillip Frost, Ladenburg’s former chairman and largest shareholder, the firm disclosed on December 26. Frost sold the majority of his holdings back to Ladenburg in December 2018 for $2.50 per share in cash and 7.25% in ten-year senior notes.

Ladenburg believes the lawsuits are meritless and will “defend vigorously” against the various allegations, according to firm spokespeople. (One of the suits was voluntarily dismissed by investor Harold Bonnikson on Wednesday in the federal court in the southern district of New York, according to a filing.)

Ladenburg’s brokerage firms are  Securities America, Triad Advisors, Investacorp, KMS Financial Services and Securities Service Network.

—Vicky Ge Huang contributed to this story.

Like this article? Let AdvisorHub come to you!  Sign up

Share This
No Comments

Leave a Reply Cancel reply

Tony Sirianni Podcast Banner

CORONACRASH NEWS

  • Finra Scrutinizes Brokers Who Took PPP Loans for Potential Violations

    Finra Scrutinizes Brokers Who Took PPP Loans for Potential Violations

    Jan 25, 2021
  • Merrill Touts Success of Growth Strategy in Pandemic-Afflicted Year

    Merrill Touts Success of Growth Strategy in Pandemic-Afflicted Year

    Jan 19, 2021
  • Raymond James Slashes CEO Pay 17% in Turbulent Year

    Raymond James Slashes CEO Pay 17% in Turbulent Year

    Jan 8, 2021
  • Solomon Sees Vaccine Bringing Goldman Staff Back by End of Year

    Solomon Sees Vaccine Bringing Goldman Staff Back by End of Year

    Jan 5, 2021
  • J.P. Morgan Bank Broker Cleared of Coronavirus Crash Claim

    J.P. Morgan Bank Broker Cleared of Coronavirus Crash Claim

    Dec 4, 2020

NEWS

  • UBS Wealth Americas Profit Hits Record with Fewer Brokers

    UBS Wealth Americas Profit Hits Record with Fewer Brokers

    Jan 26, 2021
  • Hightower Takes Stake in $830 Million New York RIA

    Hightower Takes Stake in $830 Million New York RIA

    Jan 26, 2021
  • CI Financial Buys Chicago RIA and Asset Manager Overseeing $23 Billion

    CI Financial Buys Chicago RIA and Asset Manager Overseeing $23 Billion

    Jan 25, 2021
  • Finra Bars Ex-Merrill Broker Kenahan After Record NH Settlement

    Finra Bars Ex-Merrill Broker Kenahan After Record NH Settlement

    Jan 25, 2021
  • Morgan Stanley Prevails in TRO Standoff with $6-Mln RBC Team

    Morgan Stanley Prevails in TRO Standoff with $6-Mln RBC Team

    Jan 25, 2021

FINANCIAL INDUSTRY PODCASTS

AllIndependenceSuccess
The must listen-to podcast for financial advisors by Tony Sirianni. Guests to include:
-Ron Kruszewski
-Shirl Penney
-Penny Pennington
-Eric Clarke
and many more
Michael Kitces and Carl Richards discuss financial advising topics.
Suzanne Siracuse asks the questions nobody else asks, as influencers and interviewer collide in her new and truly unique podcast series The Big Reveal.
The “new advice value stack,” and how firms can use it to help maximize their own value propositions for their clients.
The Brighthouse Financial Insights Panel is a group of leading, independent experts providing powerful insights into the big challenges facing you and your clients.
Equipping independent financial advisors with the tips, insights, and knowledge needed to evolve in every aspect of his or her life
Powering Independence Podcast, insights and ideas for RIAs, presented by Dynasty Financial Partners. A podcast dedicated to presenting fresh ideas and best practices for the wealth management industry.
As an industry expert, Frank LaRosa provides guidance and advice on a host of topics from recruiting and transitions, succession planning, practice management, M&A and more.
Our goal is to unlock the challenges to reveal the opportunities and what it means to provide advice in the 21st century.
Our webcast is dedicated to helping our viewers get real insights by avoiding the cognitive dissonance of today’s media outlets and biased editorial filters.
Go behind the scenes with registered investment advisors and other related independent business model experts
As a nationally recognized recruiter and consultant to financial advisors, Mindy Diamond has unmatched experience in introducing advisors to the independent space.
The must listen-to podcast for investors, venture capitalists and financial advisors, with Tony Sirianni and Paul Dietrich.
An Introduction to Independence: 5 Key Episodes to Jumpstart Your Knowledgebase
Jay is an investment strategist, CERTIFIED FINANCIAL PLANNER™ and business consultant to financial advisors.
In this podcast business owners, entrepreneurs and executives reveal their top tips for success.
We interview top financial advisors and visionary voices to bring you the strategies, tips, and tools you need to make a difference in people’s lives.
A financial literacy and commentary show that features a number of investors, financial experts, professional athletes, business owners and more.
Join Sound Financial Group CEO Paul Adams and President Cory Shepherd every week, as they help you Design and Build a Good Life™.
The Kuderna Podcast, focusing on wealth in it's original meaning- a state of well being.
Timeless wisdom, actionable information you can use right now to make smarter investment decisions.
Made for and dedicated to those folks serious about their financial plan.
Latest News 
Advisor Moves 
Enforcement 
Opinion 
  • About Us
  • Contact Us
  • Advertise
  • Events
  • Careers

 get our newsletter

Industry focused content and breaking news.

SIGN UP

Contact Us

EMAIL US
1707 Post Oak Blvd.
#484
Houston, TX 77056

© 2021 AdvisorHub
  • |Terms of Use
  • |Privacy Policy
  • |Advertise
  • |Careers
  • Facebook
  • Linkedin
  • Twitter

Back to top