Foresters Financial Selling Some Operations to Macquarie and Cetera -- Update

   By Josh Beckerman 
 

Foresters Financial is selling its U.S. asset-management business, including First Investors mutual funds, to Macquarie Investment Management and its U.S. broker-dealer and advisory business to Cetera Financial Group, planning to focus on its core life insurance activities.

The Macquarie Group Ltd. (MQU.AU) unit is buying operations with about $12.3 billion in assets under management as of March 31 in a deal expected to close in the fourth quarter. The assets will become part of the Delaware Funds by Macquarie.

Cetera will be permitted to invite Foresters' roughly 500 independent advisers to join Cetera's self-clearing platform. The Cetera transaction is expected to close in the second quarter.

Cetera's network of independent broker-dealers has recently added firms including Long Island-based North Ridge Wealth Planning LLC, which supported over $2.5 billion in client assets as of February.

Private-equity firm Genstar Capital bought a majority of Cetera last year.

Toronto-based Foresters, which didn't disclose the sale prices, said it expects to have ongoing relationships with Macquarie and Cetera.

Write to Josh Beckerman at [e-mail]

(END) Dow Jones Newswires

April 09, 2019 14:13 ET (18:13 GMT)

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