Barely a week after buzz started to circulate about First Allied Securities splitting from parent Advanced Equities, the deal has happened -- with private equity assistance.
First Allied confirmed yesterday that it is breaking away from Advanced Equities in a deal financed by Lovell Minnick Partners.
As initially reported, management is also helping to buy back the company and will co-own the independent venture.
Advanced Equities will continue to distribute its alternative asset-class products to the company's 1,000 advisors.
From the advisors' point of view, the principals promise that absolutely nothing will change.
No price tag on the deal yet, but it is evident that management is putting up quite a bit of the cash. A rough estimate of First Allied's worth would be about $850 million, which is more than Lovell Minnick has in its entire portfolio.