August 22, 2011 / 1:45 PM / 9 years ago

First Allied to split off from Advanced Equities

* First Allied to spin off from Advanced Securities

* Terms of the deal were not disclosed

* Deal is latest in the independent brokerage business

By Joseph A. Giannone

NEW YORK, Aug 22 (Reuters) - Advanced Equities Financial Corp is selling First Allied Securities Inc to the independent brokerage’s management in a deal financed by Lovell Minnick Partners, the firms said on Monday.

San Diego-based First Allied said it will keep its name and executive officers, while not changing its day to day operations. The transaction is expected to be completed in the fourth quarter. Terms were not disclosed.

First Allied, founded in 1994, employs about 1,000 financial advisers in 500 branches across the United States. Advanced Equities, which acquired the firm from Wells Fargo & Co (WFC.N) in 2005, makes late stage investments in companies.

The sale comes as deal activity heats up in the brokerage industry. It also reflects rising expectations for the independent broker-dealer business, which has been growing at a much faster rate than traditional Wall Street and regional brokerages.

Last week Ladenburg Thalmann (LTS.A) agreed to acquire Securities America, one of the country’s 10 largest independent brokerages, from Ameriprise Financial (AMP.N) for $150 million. Earlier this month, Investors Capital Holdings ICH.A founder sold his controlling stake in a deal that put the firm in the hands of its 500 advisers.

Commercial bank Regions Financial (RF.N), meanwhile, is narrowing down a field of bidders for its Morgan Keegan. (Reporting by Joseph A. Giannone; Editing by Derek Caney)

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