Rcap Holdings LLC is buying First Allied Holdings Inc., a retail financial services organization.
San Diego-based First Allied is a retail broker-dealer that aims to help financial advisers that are looking to grow their businesses. First Allied, together with subsidiary the Legend Group, serves more than $32 billion in assets. Terms of the transaction were not disclosed.
Rcap, headquartered in New York, focuses on the retail direct investment industry.
The deal will give First Allied financial resources to make investments in technology, add employees and expand programs.
As part of the deal, private equity firm Lovell Minnick Partners, will sell its majority interest in First Allied. Lovell Minnick invested in the target in November 2011. The firm, which has offices in Radnor, Pa. and El Segundo, Calif., has more than $850 million in committed capital. Its portfolio companies include Kanaly Trust, Mercer Advisors and TriState Capital.
Other recent broker-dealer acquisitions include John Hancock’s purchase of Symetra, Cetera Financial Group’s purchase of Tower Square Securities and Walnut Street Securities, and MLV & Co.’s acquisition of a 49 percent stake in Westport Capital Markets.