Stratos Wealth Holdings, an umbrella firm for a network of registered investment advisors and broker/dealers, has fully acquired 11 of its practices overseeing $4.8 billion in client assets, the firm announced Thursday.
Stratos, based in Beachwood, Ohio, said it had begun working on the acquisitions before asset manager and financial technology firm SEI Investments Company took a controlling stake in the RIA last July.
The firms range from solo-advisor practices to multi-advisor teams across seven states and are part of Stratos’ strategy to invest in partner advisory practices to fuel growth, raise value and create a clear succession path, according to CEO Jeff Concepcion.
“We believe the traditional succession model is evolving, and advisors are increasingly looking for strategic partners that can provide scale, resources and flexibility without sacrificing leadership of their businesses,” Concepcion said.
Stratos still has more than 350 firms in its partner network, along with its W-2 employee channel.
Oaks, Pa.-based SEI paid about $544 million for a 57.5% stake in Stratos last year, with the remaining 42.5% held by former Stratos equity holders, including Concepcion, according to regulatory filings. SEI is working to acquire the remaining business, based in Mexico.
Nasdaq-listed SEI wrote in a February filing that: “Stratos’ nationwide advisor network … broadens SEI’s distribution reach, creating natural entry points for SEI’s outsourced chief investment officer, Private Wealth, SEI Access, alternatives and asset management solutions, while its M&A engine strengthens SEI’s ability to meet growing advisor succession‑planning needs as the industry’s demographics shift.”
SEI bought out minority investor Emigrant Partners through the transaction, which had invested in Stratos in 2020.
“SEI’s strategic investment has helped accelerate our ability to support advisors while preserving the entrepreneurial culture that defines Stratos,” Concepcion added.
The 11 practices Stratos acquired are located in Arizona, Massachusetts, California, New York, Ohio, Pennsylvania and Virginia.
“Advisors retain leadership of their firms while gaining access to expanded infrastructure, operational capabilities and strategic resources designed to support continuity and future enterprise value,” Lou Camacho, president of Stratos Wealth Enterprises, said in a statement.
