M&A By LPL, WEG, Mercer, Mariner, Mesirow And GTCR. Recruitments By WFA, Cetera And RBC. Sound Income Group Rebrands Consulting Unit. Catchlight Introduces Lead Routing Model. Bluespring Appoints New President.
By Chris Latham
September 10, 2024
https://wealthsolutionsreport.com/2024/09/10/deals-recruiting-roundup-lpl-weg-assetmark-sound-income-group-and-more/
This edition of the Deals & Recruiting Roundup covers LPL agreeing to acquire The Investment Center, Wealth Enhancement Group acquiring Levy Wealth Management Group, Mercer acquiring Benchmark Wealth Management, Mariner acquiring Woodbridge International, Mesirow acquiring Price Wealth Management, WFA hiring a former NFL player and a former sports broadcaster, Cetera onboarding Innovative Premier Financial Services, GTCR completing its buyout of AssetMark, Sound Income Group rebranding its consulting unit to Sound Income Academy, Catchlight introducing a Lead Routing model for advisor growth, Kestra’s Bluespring appointing Pradeep Jayaraman as President and RBC adding two teams from Wells Fargo.
Larry’s Take
This week’s roundup features many significant developments, with Mariner’s acquisition of the M&A consultancy Woodbridge International standing out as one of the most interesting deals of the year, because integrating Woodbridge can expand Mariner’s capabilities to providing M&A services to its own wealth management clients.
While the wirehouses regularly offer both services to business owner clients, and they even co-exist at some midsized banks, it is rare among RIAs in the independent channel. This makes sense, given that merging two wealth management firms for maximum value often requires significant focus for buyers and sellers. Even merging CPAs into RIAs in a worthwhile manner is usually seen as a challenge, due to their differing business models.
So bringing an even more differentiated business model – client-facing M&A – into the fold, will no doubt come with its own hurdles. The up-and-down market cycles of middle market deal flow outside of the wealth management sector, for one thing. However, provided Mariner figures out how to make this deal work for all parties, other large RIAs are bound to follow suit.
If you would like to discuss this Larry’s Take further, including how these trends might impact your business, please contact me at larry.roth@rlrstrategicpartners.com.
Mergers & Acquisitions
1. LPL To Acquire $9 Billion BD And RIA The Investment Center, Gaining 240 Advisors
LPL Financial agreed to acquire Bedminster, New Jersey-based broker-dealer and RIA The Investment Center. Founded in 1986, it provides back-office support, investment tools, technology and nonproprietary products to a national network of independent financial advisors.
The two firms were introduced during LPL’s acquisition of Atria Wealth Solutions. LPL plans to complete the acquisition of The Investment Center in the first half of next year. Berkshire Global Advisors is the lead financial advisor to The Investment Center. LPL serves more than 23,000 advisors, including those at approximately 1,000 institutions and at 580 RIAs.
“The Investment Center fosters an entrepreneurial approach that has driven their success in reaching nearly $9 billion in assets,” said Rich Steinmeier, Managing Director and Chief Growth Officer at LPL. “By bringing The Investment Center’s 240 high-performing advisors to LPL, we look forward to serving their thriving businesses and providing them our industry-leading service and technology.”
2. WEG Acquires $1.3 Billion Levy Wealth Management Group In Philadelphia
Wealth Enhancement Group (WEG), which has over $90.5 billion in client assets, acquired Philadelphia-based Levy Wealth Management Group, a hybrid RIA with over $1.3 billion in assets. President Victor Levy leads the firm alongside COO and Wealth Advisor Michael Clatterbuck and Wealth Advisor Joseph Robostello.
Going forward, it will operate as the Levy-Clatterbuck-Robostello Team, which consists of three other advisors and a 10-person client service team, according to its webpage. Victor’s father established the business in 1972 as Leon L. Levy and Associates, a life and disability insurance brokerage. David Selig of Advice Dynamics Partners served as M&A advisor for Levy Wealth Management Group.
“We are incredibly pleased to welcome Levy Wealth Management Group to our firm,” said Jeff Dekko, CEO of Wealth Enhancement Group. “Victor, Michael, Joe and their team have built a sophisticated practice rooted in personalized financial planning. They live their mission – We Show We Care – every day by building strong, sustainable client relationships.”
3. Mercer Acquires $412 Million Benchmark Wealth Management In Connecticut
Denver-based Mercer Global Advisors acquired Old Lyme, Connecticut-based Benchmark Wealth Management, which serves more than 300 clients and has approximately $412 million in assets under advisement. Principals Richard Stout III and Thomas Britt formed Benchmark in 2007 by merging their practices.
Mercer – which is majority owned by Oak Hill Capital, Genstar Capital and Altas Partners – has more than 1,150 employees across more than 90 locations and $63 billion in client assets. In March, Mercer acquired MDK Private Wealth Management, which at the time had over $2.5 billion in assets under supervision.
“With both firms anchoring on financial planning and client experience, it was easy to see that the Benchmark team would fit right in and integrate smoothly,” said Dave Welling, CEO of Mercer Advisors. “We are thrilled they are joining the Mercer Advisors team and bolstering our growing presence in Connecticut and the Northeast area. We look forward to working together to help deliver meaningful results for our shared clients.”
4. Mariner Boosts M&A Advisory Capabilities With Woodbridge Purchase
Overland Park, Kansas-based Mariner Wealth Advisors acquired New Haven, Connecticut-based middle-market M&A consultancy firm Woodbridge International. Mariner expects to complete the integration by the end of 2024. Woodbridge, which also has a Cape Town, South Africa office, has a worldwide database of 8,400 private equity groups and 410,000 companies.
Founded in 2006, Mariner and its affiliates advised on more than $245 billion in assets as of June 30. Its client base includes approximately 1,200 business owners. Earlier this year, Mariner announced the acquisitions of Winter Park, Florida-based AndCo Consulting; Covington, Kentucky-based Fourth Street Performance Partners; and Sacramento-based Confluence Financial Planning, representing a combined $104 billion in assets under advisement.
“The integration of Woodbridge International into the Mariner family marks a transformative step in our mission to deliver comprehensive, client-focused financial services,” said Marty Bicknell, CEO and President of Mariner. “This acquisition enables us to broaden our service offerings, empowering our clients to navigate the complexities of M&A with greater confidence and precision.”
5. Mesirow Acquires Price Wealth Management In Florida
Chicago-based Mesirow Wealth Management, which has over $11.4 billion in assets under management (AUM) and advisement, acquired Stuart, Florida-based Price Wealth Management. Mesirow also has offices in Miami and Boca Raton, Florida.
Price Wealth Management Founding Partner Craig Price and Senior Client Service Specialist Nancy Zehr join Mesirow. DeVoe & Company represented Price Wealth Management in the transaction. Mesirow is an employee-owned firm that was founded in 1937.
“This transaction aligns with our focus on serving a growing base of wealth management clients, advancing the firm’s footprint in Florida and the regional Southeast, and combining ongoing organic growth with strategic acquisitions in the wealth space,” said Brian Price, CEO of Mesirow.
6. GTCR Completes Buyout Of AssetMark, Lou Maiuri Becomes Chairman
The private equity firm GTCR completed its buyout of the wealth management technology platform AssetMark, which had been a publicly traded company since July 2019 with Huatai Securities as the majority shareholder. The acquisition was valued at approximately $2.7 billion with the company’s shareholders receiving $35.25 per share in cash. As of June 30, AssetMark had over $119 billion in platform assets.
Lou Maiuri was appointed as Chairman and Group CEO of parent company AssetMark Financial Holdings. Maiuri will work with AssetMark President and CEO Michael Kim, both of whom will join the Board of Directors of AssetMark Financial Holdings. Most recently, Maiuri was President, COO and Head of Investment Servicing at State Street Bank. Before that, he held senior roles at BNY Mellon, Eagle Investment Systems and Fidelity.
“I’m thrilled to be joining the AssetMark team as the company looks to propel its next phase of growth with GTCR,” Maiuri said. “I look forward to working closely with GTCR, Michael, and the entire AssetMark team to strategically grow the business and unlock the company’s future potential.”
Advisor Transactions
7. RFG Advisory-Backed WFA Recruits Ex-NFL Player, Sports Broadcaster
Shreveport, Louisiana-based WFA recruited Shreveport natives Brandon Wilson, a recently retired NFL safety for the Cincinnati Bengals, and Rashad Johnson, a former KSLA News 12 sports reporter, as Financial Analysts. They will collaborate with WFA’s advisors to provide financial education and guidance to young athletes. WFA is an advisor partner of RFG Advisory.
Wilson played in the NFL for several years before beginning his financial services career. In addition to journalism, Johnson founded the nonprofit clothing brand #ItsAllLove365 and previously worked with WFA as an independent contractor and freelance digital media creator. WFA intends to expand its support for high school, collegiate, semi-professional, professional and retired athletes for various sports, including athletes with NIL endorsement deals.
“I’ve never shied away from a challenge in my life or playing career; I’m approaching my new position at WFA with the same mindset,” Wilson said. “I’m driven to find opportunities to make a difference in people’s lives,” Johnson said.
8. Cetera Onboards Team Led By Houston-Based Husband And Wife
Cetera Financial Group onboarded Innovative Premier Financial Services (IPFS), a seven-person team led by Managing Partners David and Kate Frank, a husband and wife duo. They joined Cetera Wealth Partners from NEXT Financial Group, where the team served approximately 500 clients.
With 60 years of combined financial services experience, David and Kate Frank have served the Houston area since the early 1990s. IPFS provides financial planning, investment advice, estate services and business planning services. As of June 30, Cetera had over $521 billion in assets under administration and $224 billion in AUM across approximately 12,000 financial professionals and their teams.
“Cetera clearly understands and appreciates our business and goals, and we didn’t have any other firms coming to the table with such a comprehensive plan and vision for the future,” said David Frank. “As we started a search to transition our business, Cetera immediately stood out for the breadth of options that we can offer our clients,” said Kate Frank.
Strategic Partnerships
9. Sound Income Group Rebrands Consulting Unit To Sound Income Academy
Sound Income Group, a diversified financial services company, rebranded its consulting, coaching and marketing firm to Sound Income Academy to better align with the focus of the broader organization. The division was founded in 2006 as Advisors’ Academy, a sales process and office efficiency training platform to help advisors grow their business.
Fort Lauderdale, Florida-based Sound Income Academy is one of three subsidiaries operating under the Sound Income Group umbrella. The others are Sound Income Strategies, an RIA with more than $3 billion in AUM, and The Retirement Income Source, a network of advisors focused on delivering income-generating investment strategies.
“Sound Income Academy was created to help successful, motivated financial advisors grow their business through customized marketing, coaching and practice management support,” said Patrick Farrell, President and COO of Sound Income Group. “We’re proud to have helped hundreds of advisors with our turnkey program and we’re excited to better align this division with the vision at Sound Income Group.”
10. Catchlight Introduces AI-Enabled Lead Routing Model To Boost Advisor Growth
Catchlight, a technology-focused organic growth platform, is rolling out a Lead Routing decision support model that aims to identify the advisor or team most closely aligned to work with a lead based on their book of business, help firms funnel leads to teams or advisors specializing in clients with similar profiles, and boost conversion rates and organic growth.
Firms can generate leads from sources such as centers of influence, marketing campaigns and custodial referral programs. Catchlight creates prospect profiles that include age range, estimated income, estimated investable assets, education and employment history. The AI-enabled Lead Routing model is currently in invitation-only beta mode.
“Catchlight’s new model is part of our continued and relentless pursuit of leveraging data to help firms drive organic growth in a much more efficient way,” said Wilbur Swan, CEO and Co-Founder of Catchlight. “Customer acquisition is an expensive and often suboptimal process. We aim to improve lead-to-client conversation rates while decreasing costs for the firm and elevating the experience for the investor.”
Promotions & People Moves
11. Kestra’s Bluespring Appoints Focus Executive Pradeep Jayaraman As President
Kestra Holdings subsidiary Bluespring Wealth Partners, an acquirer of independent RIAs and hybrid wealth management firms, appointed Pradeep Jayaraman as President. Stuart Silverman will remain as Chairman, focusing on supporting growth. Most recently, Jayaraman was Co-Head, Partnerships & Business Development at Focus Financial Partners, where he spent over 10 years.
Separately, Kestra Financial recruited Sykesville, Maryland-based Scott Gomsak and Hanover, Pennsylvania-based Scott Raab through Port Jefferson, Long Island-based Coastline Wealth Management, which joined the Kestra network in 2012. Gomsak and Raab bring approximately $250 million in combined client assets to Coastline, whose advisors collectively oversee approximately $3 billion.
“Bluespring has built a unique and differentiated value-added platform,” Pradeep said. “I am proud to join a team that offers key strategic benefits to entrepreneurially minded firms, helping to preserve, sustain and build on their legacy while institutionalizing the principles by which they became successful in the first place.”
Wirehouse / Big Bank Activity
12. RBC Adds 2 Teams From Wells Fargo With Combined $801 Million
RBC Wealth Management recruited two teams from Wells Fargo whose advisors oversee a combined $801 million in client assets. In the past month, RBC also recruited from Merrill Lynch and Morgan Stanley.
Rob Salon and Pari Hashemi Magura lead The Salon Magura Private Wealth Group, which is based in Conshohocken, Pennsylvania, and brings $455 million. Tysons, Virginia-based Bernard Suissa brings $346 million. They are each Managing Directors, Financial Advisors and Senior Portfolio Managers.
“Rob and Pari lead a dynamic team who was attracted to the RBC Wealth Management culture, accessibility to management and size of the organization,” said Scott Ceniccola, Philadelphia Complex Director at RBC Wealth Management – U.S. “Bernard serves high net worth clients well, and has a talent for guiding them through various complex situations,” said Mid-Atlantic Complex Director Warren Bischoff.