The Public Sector Pension Investment Board, alongside private equity firm Lightyear Capital, is selling Advisor Group Inc. to Reverence Capital Partners.

After the transaction closes in the third quarter of 2019, both the PSP and Lightyear will continue to hold minority stakes.

Since the PSP and Lightyear acquired Advisor Group from AIG Inc. in May 2016, client assets grew from $157 billion to $268 billion. The firm also has more than 7,000 financial advisors, up from 5,200 in 2016, according to a press release.

Read: CPPIB, PSP sell stakes in medical device company

Advisor Group’s current management team will remain in place, with Jamie Price serving as president and chief executive officer and Valerie Brown retiring as executive chairman, but remaining as an investor in the company.

“PSP partners with best-in-class private equity investors and management teams,” said Simon Marc, managing director and head of private equity at PSP. “During our joint ownership with Lightyear Capital and under the leadership of Valerie and Jamie, Advisor Group has transformed itself to deliver tremendous performance for its clients and its financial advisors.”

Read: PSP Investments invests in U.S. insurance broker

Copyright © 2019 Transcontinental Media G.P. Originally published on benefitscanada.com

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