FT. LAUDERDALE, Fla., May 8, 2017 /PRNewswire/ -- Kovack Securities, Inc., a privately-owned independent broker-dealer and registered investment adviser (RIA) based in Fort Lauderdale, Florida, today announced an asset purchase agreement with TKG Financial ("TKG"), an independent broker-dealer and financial advisory firm based in Santa Barbara, California. Founded in 1998 by Dr. Ronald Kovack and his son, Mr. Brian Kovack, Esq., Kovack Securities serves approximately 400 independent financial advisors across the country who supports mass affluent and high net worth retail investors as well as company retirement plans of all sizes on a fee and brokerage basis.
Under the terms of the agreement, all of TKG's seven independent financial advisors, collectively supporting over $200 million in client assets, are expected to transition to Kovack Securities and its RIA platform, Kovack Advisors. Founded in 2001 by L. Keith Kelt, his son Landon Kelt, his daughter Whitney Kelt, and Derek Brumfield, TKG Financial will continue to be led by Mr. Kelt and retain its current brand, management and offices in Santa Barbara. The firm will relinquish its broker-dealer status while remaining together as an independent branch, or Super-OSJ (Office of Supervisory Jurisdiction), of Kovack Securities.
Mr. Brian Kovack, Esq., president and Co-Founder of Kovack Securities, said, "We're excited to welcome Keith and his entire team under a structure that preserves everything TKG's advisors love about their firm, without the regulatory and administrative burdens of being a broker-dealer. Smaller independent firms increasingly seek to eliminate rising broker-dealer costs while maintaining their unique brands and communities of like-minded advisors. As a family-owned firm with a national footprint, a boutique advisor service culture and a commitment to long-term ownership stability, we offer a unique path forward for smaller firms that want to stay together as distinctive Super-OSJ groups rather than get absorbed into a monolithic, large firm with thousands of advisors. In this landscape of accelerated industry consolidation, we're confident our transaction with TKG is the first of multiple similar deals to come for Kovack Securities."
In addition to the veteran team of independent financial advisors that will join Kovack Securities as part of the asset purchase agreement, the transaction also provides the company with a fully built-out presence in an area of California with one of the highest concentrations of retail investor wealth in the nation. Kovack Securities noted that the Greater Santa Barbara area continues to be a highly desirable market in its own right as well as a strategic 'jumping off point' from which to further expand advisor recruiting activity on the West Coast. The transaction also serves TKG Financial's goals by enabling their team of successful and growth-oriented professionals to fully focus on advising clients and building their books of business.
Mr. Keith Kelt, founding principal of TKG Financial said, "The founding partners of our firm all came from the wirehouse channel prior to launching TKG. When we made the decision to become a broker-dealer in 2005, we wanted to create a perfect blend of a wirehouse and independent culture, presenting ourselves as a true alternative to the rest of the industry. While our broader approach and vision remain unchanged, escalating broker-dealer regulatory complexities have motivated us to pursue this transaction so we can renew our focus on what we've always done best: Serving our clients."
Mr. Kelt continued, "We knew from our first discussions with Kovack Securities that we share compatible management and investment philosophies, including a passion for building a truly new approach to advisor support and client service. We're also excited about the industry-leading resources Kovack Securities brings to the table that will immediately enhance our value proposition to clients and prospective clients, including a proprietary advisory platform that will enable our advisors to seamlessly access the widest possible range of third-party investment models on a highly cost competitive basis."
Dr. Ronald Kovack, Chairman and Co-Founder of Kovack Securities, said, "Over the past few months, as the teams at Kovack Securities and TKG Financial we got to know each other, it became clear to all involved that our firms would be a great fit, both in terms of culture and common goals. By helping us strengthen our presence and recruiting capabilities on the West Coast while enabling Keith and his team to immerse themselves once more on what they enjoy most about the business – helping clients and working closely together as like-minded peers – this transaction makes tremendous sense for both of our firms."
The transaction has been completed as of mid May 2017, and financial terms of the asset purchase agreement were not disclosed.
About Kovack Securities
Kovack Securities is a privately owned, national, full-service independent broker-dealer based in Fort Lauderdale, Florida, that operates in tandem with its affiliated registered investment adviser (RIA) platform, Kovack Advisors. Founded in 1997, the firm supports approximately 400 affiliated independent financial advisors across the country, who provide objective financial planning and investment management services on a fee and brokerage basis to mass affluent and high net worth retail investors as well as company retirement plans of all sizes. Kovack Securities and Kovack Advisors together focus on providing successful and experienced financial advisors with the services, tools, resources and training to grow and succeed as independent business owners in the retail financial advice industry. For more information, please visit www.kovacksecurities.com.
About TKG Financial, Inc.
TKG Financial was founded in 2001 and became a fully registered broker-dealer with the NASD (now FINRA) in 2005. TKG Financial and its advisors provide asset management, financial planning services, insurance services and investment advisory solutions to institutional, corporate and private clients. For more information, please visit www.tkgfinancial.com.
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SOURCE Kovack Securities