Equitable Acquires Stifel’s $9B Independent Advisor Unit
Equitable Advisors is making a significant move by acquiring Stifel Financial’s independent advisor business, valued at a remarkable $9 billion. This acquisition, anticipated to finalize in the first quarter of 2026, will enhance Equitable’s offerings and broaden its wealth management practice.
Key Details of the Acquisition
– Expansion of Client Assets: The deal will add approximately $9 billion in client assets.
– Increasing Advisor Base: Over 110 advisors will join Equitable Advisors, enriching the firm’s talent pool.
– Growth Rate: Equitable’s wealth practice boasts an impressive organic growth rate of 12% over the past 12 months.
Equitable Holdings, which also manages the thriving 403(b) educational retirement plans and holds a majority stake in AllianceBernstein, considers wealth management its fastest-growing segment. Currently, Equitable Advisors oversees over $110 billion in assets and employs around 4,500 professionals.
Strategic Considerations
Stifel’s CEO, Ron Kruszewski, remarked that the independent advisor channel only represents a minor portion of Stifel’s overall wealth and banking operations. He highlighted that the acquisition ensures a prosperous future for the independent advisors within a partnership that aligns with their core values.
– Exclusion of Employee Advisors: The acquisition notably does not include Stifel’s employee advisor channel, which comprises over 2,400 financial advisors.
– Enhanced Resources: Once regulatory approval is secured, Equitable will benefit from Stifel’s open-architecture platform, advanced marketing tools, and comprehensive succession planning processes for independent advisors, who operate as 1099 contractors.
Future Plans for Equitable
Equitable has indicated its intention to pursue additional strategic acquisitions, bolstered by the recent promotion of Nick Chan to head of mergers and acquisitions. His expertise as the former corporate CFO enhances Equitable’s strategic capabilities moving forward.
– Legal Representation: Eversheds Sutherland provided legal counsel for Equitable during this transaction, while Bryan Cave Leighton Paisner represented Stifel.
This acquisition signifies a bold step for Equitable in expanding its wealth management services and underscores its commitment to growth and innovation in the financial sector.