Genstar has invested into the US wealth management group since 2018.

Genstar Capital, the private equity house, has reinvested into Cetera Financial Group, the US financial advisor “wealth hub”.

The new investment is led by Genstar’s newest fund, Fund XI, with additional capital from Fund X. The financial size of the investment wasn’t disclosed.

In August, Cetera wrapped up its acquisition of the retail wealth and trust business of Securian Financial Group. Earlier in August, the group bought Powell Financial Partners, a Georgetown, Texas-based wealth management firm.

Genstar originally invested in Cetera in 2018.

"Secular tailwinds and continued economic growth underpin confidence in Cetera's future,” Cetera Holdings CEO Mike Durbin said. 

His colleague, Cetera Financial Group CEO, Adam Antoniades, added: “Over the past five years, Cetera has grown from approximately 7,000 advisors and 1,300 employees supporting $242 billion of assets under administration in 2018 to approximately 9,000 advisors and 2,000 employees supporting $374 billion of AuA today.”

Moelis & Company and Morgan Stanley & Co served as financial advisors and Willkie Farr & Gallagher served as legal counsel to Cetera and Genstar.

The transaction is expected to close in the fourth quarter of 2023, subject to the receipt of regulatory approvals and the satisfaction of other closing conditions.