Arete Wealth, an independent broker-dealer, registered investment advisor and insurance firm headquartered in Chicago, will acquire Center Street Securities, a Nashville, Tenn.-based securities broker-dealer with $1.04 billion in client assets, the companies announced today.
“We both share a strong belief in endowment-style investing for our high-net worth clients,” Arete Wealth founder and CEO Joshua D. Rogers said in a prepared statement. “Arete Wealth specializes in bespoke alternative investments and adding Center Street’s strength in this area to our industry-leading position makes us the premier choice for alternative investment prowess.”
Financial details of the transaction were not disclosed.
Center Street was founded in 1990 as Elliott Financial Services. CEO Jack (JR) Thacker purchased the firm in 2007 and renamed it Center Street Securities. By 2009, the firm had grown to 100 financial advisors.
Upon closing of the formal transaction during the first quarter, Arete Wealth will have $5.5 billion in assets under management and 265 registered representatives nationwide–a 75% increase. The deal will also grow Arete Wealth’s revenue by 40%, the company said.
The merger will benefit Center Street, as well as Arete Wealth, according to Thacker.
“Joining Arete Wealth ensures Center Street continues to deliver top-notch support to our advisors and clients while leveraging Arete’s deep due diligence in alternative investments, a seasoned regulatory compliance team, and advanced advising technology solutions,” he said in the press release.
Upon closing, the combined companies anticipate distributing about $250 million in alternative investments in 2021, based on a previous year’s performance.
The companies will strategically combine their entities throughout 2021. After integration, the newly merged firm will operate under the Arete Wealth Inc., brand.
Arete Wealth investments and services are offered through100 offices and 265 registered advisors nationwide.