Feb 29 (Reuters) - JHS Capital Advisors, the brokerage firm founded by former GunnAllen Chairman John Sykes, said on Wednesday it plans to buy Paulson Investment Co's retail business in a move that would increase its total client assets under management by roughly 50 percent.
JHS Capital, based in Tampa, Florida, currently has about 100 advisers across the United States managing more than $2 billion in client assets. Under the deal, JHS would add Paulson's roughly 75 advisers, who manage $1.1 billion in client assets.
"We are excited about the growth of the firm," said JHS' vice president of strategic development, Eileen Canady, in an interview.
"Strategically, the region that Paulson is in is predominantly west, midwest, and that's a good fit for us," said Canady, noting that the deal would increase JHS' presence to 21 states from 15 states.
The transaction, whose terms were not disclosed, is subject to approval by the Financial Industry Regulatory Authority, the independent U.S. securities regulator.
Paulson advisers would remain in their current offices, simply changing their firm titles to become registered representatives of JHS, said Trent David, president and chief executive of Paulson.
Both JHS and Paulson already use RBC Correspondent Services, a division of RBC Capital Markets, for custody of client assets and securities, trade execution and portfolio reporting.
"As we both clear through RBC, we've known of each other and seen each other at conferences," Davis said, which is how the partnership first came about.
Paulson Investment Co is a wholly-owned subsidiary of Portland, Oregon-based Paulson Capital Corp.
JHS also said earlier this month it hired two veteran advisers from Morgan Stanley Smith Barney and Oppenheimer & Co in Tampa.