This edition of the Deals & Recruiting Roundup covers MAI Capital Management’s acquisition of Carmichael Hill & Associates, Homrich Berg adding a new RIA, Avitas merging with Lido, Hightower adding Dechtman Wealth Management, Sanctuary partnering with BNY Pershing, Snowden Lane launching a new retirement program for advisors, Blanco moving to Stonebrook and LPL, Vanguard’s new wealth management division, Focus Financial’s new business management hub deal, LPL recruiting Prestige Wealth Group and Perigon recruiting Robert and Evan Harrigan.
Larry’s Take
Advisor succession planning and retirement is a perennial topic in wealth management, one of the primary drivers of M&A in this space and a significant factor in recruiting and wirehouse breakaways as well. Statistics on the average age of advisors and the numbers planning to retire in the next few years have been widely shared for years.
Snowden Lane’s new advisor retirement program gets down to the brass tacks of what retiring advisors are looking for, including clear numerical statements, guarantees for the advisor’s family in the event of an early death, and continued client service. Snowden Lane’s CEO said this program originated from advisors who want to stay with the firm but also monetize their practices.
This isn’t the first program to address the burgeoning population of retiring advisors, and it won’t be the last. Complacency is the wrong answer. If you’re a home office, your advisors are thinking about either retirement or where they fit in the upcoming succession. This is one area that you must proactively address or risk losing advisors who otherwise would stay if you provided the right incentive structure.
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
MAI Acquires Carmichael Hill & Associates, Adding $350 Million In AUM
Cleveland, Ohio-based MAI Capital Management acquired Carmichael Hill & Associates. Founded by Jim Stewart in 1989 in Gaithersburg, Maryland, Carmichael Hill will adopt MAI’s brand identity and receive its internal infrastructure, including human resources, operations and marketing resources. Stewart, who is Principal at Carmichael Hill, will remain with MAI as Senior Wealth Advisor and Team Leader.
The sole owner of Carmichael Hill since 2013, Stewart led the development of financial services across retirement, tax and estate planning. The firm has a particular focus on advising small business owners and individuals over the age of 50. Carmichael Hill had $350 million in client assets under management (AUM) as of Sept. 30.
“The addition of the Carmichael Hill team marks another step forward in our mission to deliver high-quality service and solutions for clients,” said James McDermott, Market Leader and Regional President at MAI. “Jim has built an exceptional team and array of services that aligns seamlessly with our own values. Providing them with our infrastructure and additional resources will only enhance the strong offering they’ve built for their clients.”
$1.1 Billion Avitas To Merge With Lido In Multi-Generational Service Move
A pair of billion-dollar Los Angeles wealth management firms are joining forces, with Avitas Wealth Management merging with Lido Advisors. The deal gives Lido access to the multi-generational family financial advisory market, an area of special focus for Avitas, which had $1.1 billion in AUM as of Sept. 30.
Lido, with $24 billion in AUM as of Oct. 31, sees Avitas as a good financial and cultural fit. The asset management firm has accelerated its M&A efforts in recent years. The firm has more than tripled its AUM since 2020 and aside from the Avitas deal, has announced deals in Colorado and Wisconsin over the past two months.
“We’ve always believed that clients deserve more than one-size-fits-all solutions—they deserve personalized, tailored financial strategies that align with their unique needs and long-term goals,” said Eric Taslitz, Managing Principal at Avitas. “Lido shares this philosophy, making them a natural partner for us. We’re excited about the opportunity to expand our capabilities and bring even more value to the families we serve through this partnership.”
Homrich Berg To Acquire $6.4 Billion WMS Partners In Maryland
Atlanta-based Homrich Berg (HB) Wealth Management agreed to acquire WMS Partners (WMS), a $6.4 billion multi-family office and RIA based in Towson, Maryland. Both firms operate on a fee-only basis. The transaction is expected to close early in the first quarter of 2025. WMS will become part of HB Family Office. The acquisition will boost AUM to more than $24 billion and expand its footprint to include 10 offices in five states with more than 300 team members.
Founded in 1993 by Tim Chase, David Citron and Martin Eby, and now with 80 employees and partners, WMS has been providing holistic wealth management and family office services for high and ultra-high net worth individuals and families, including trust and estate planning and a private investments platform. Todd Wickwire is CEO of WMS. The firm already had a multi-year relationship with HB. HB manages more than $18 billion in client assets.
“HB is highly selective as we evaluate potential partners, and we are thrilled to join forces with WMS Partners, who we have long admired for their unwavering commitment to serving as a fiduciary to client families,” said Thomas Carroll, Homrich Berg CEO and President.
Hightower Invests In $800 Million Dechtman Wealth Management In Denver Area
In its sixth strategic investment for 2024, Chicago-based Hightower invested in Dechtman Wealth Management, a Centennial, Colorado-based financial planning and wealth management practice with $800 million in assets. That brings the nationwide Hightower advisor community count to 140 advisory businesses in 35 states and Washington, D.C.
Dechtman is led by Founder and Senior Wealth Manager Jordan Dechtman and his two sons, Sam and Adam. Founded in 1984, the firm offers investment management, financial planning, estate planning, Medicare planning and Social Security analysis to its clients.
“We operate on four basic principles – always do what is best for the client, provide a straight-forward cost, have transparent communication, and treat clients with care and respect,” said Jordan Dechtman. “Joining Hightower will enable our team to continue operating this way and provide access to a host of additional tools and services to help benefit our community.”
Focus Financial Partners Inks Business Management Hub Pact
Focus Financial Partners is rolling out its latest addition to its Business Management Hub. Its latest hub partner, Los Angeles-based Gelfand, Rennert & Feldman (GR&F), is a business management and multi-family office firm.
Founded in 1967, GR&F has carved a niche in the entertainment industry, particularly in music, television and film, as well as with athletes, executives, influencers, and high net worth and ultra-high net worth individuals. GR&F is Focus’ fourth business hub, joining The Colony Group, Kovitz Investment Group Partners and SCS Capital Management.
“In today’s dynamic landscape, in which clients are asking for a broader suite of services and deeper expertise, it’s increasingly important for firms to take proactive steps to bolster their offerings and continue providing clients with exceptional capabilities and expertise,” said Tyson Beem, CEO of GR&F. “Becoming a Focus hub underscores GR&F’s commitment to empowering our teams and clients by striving to offer the best resources to the business management and family office community.”
Advisor Transactions
LPL Links Up With Prestige Wealth Group, Adding $540 Million In Assets
San Diego-based LPL Financial is adding new blood to its ranks, with Prestige Wealth Group’s Managing Partners Rich Galgano and Matt Geraci joining its broker-dealer, RIA and custodial platforms. PWG team members Chris Rich, Paul Goldman and Alan Concha will also join LPL. The PWG team brings $540 million in assets.
Franklin Lakes, New Jersey and Westchester, Pennsylvania-based Prestige Wealth Group was founded in 2007 by Mark Fleksher, who stays with PWG in a consulting role. Galgano and Geraci have been with the firm since 2020, helping it expand into new practice areas.
“We offer advanced services for all phases of a person’s financial journey, and in recent years we’ve shifted our practice to focus on affluent clients in the high-net-worth space,” Geraci said. “Our decision to align with LPL was based on the firm’s advanced technology, strategic support, and dedication to empowering advisors to deliver optimal client experiences,” Galgano said.
Blanco Makes Move To Stonebrook And LPL Financial
Former JPMorgan Chase financial advisor Francisco J. Blanco joined LPL Financial. Blanco, who reportedly held $200 million in assets at J.P. Morgan, will also merge with Boca Raton, Florida-based Stonebrook Wealth Management, founded in 2019 by fellow J.P. Morgan veteran Joe Mazzucco. The alliance formed a new entity called Stonebrook Wealth Partners.
“I became an independent financial advisor to remove the glass ceiling,” said Blanco. “I believe the best way to offer financial guidance is to be free of corporate mandates, sales quotas, and limitations. LPL is in the business of supporting independent advisors and provides the technology, autonomy, and resources that Stonebrook needs to deliver the best possible experience to my clients.”
Blanco, who has spent 12 years in the financial advisory business, is a “high-caliber and experienced financial advisor with a passion for helping others,” Mazzucco said. “He is dedicated to his craft and will be a great resource to our firm as we build out our team and service experiences.”
Perigon Lands New Wealth Management Talent From UBS
Former UBS wealth managers Robert Harrigan and his son Evan Harrigan are joining Perigon Wealth Management’s Boca Raton, Florida, office. The duo managed $170 million in assets at UBS, where the senior Harrigan served as Senior Vice President, Private Wealth Advisor. Previously, he held posts at Merrill Lynch as a Senior Vice President and Private Wealth Advisor and at Chase Manhattan Global Private Bank, where he served as Chief Investment Officer.
“The fragmentation of the wealth management industry provides advisors with so many affiliation options but few that provide the flexibility and support that are the backbone of Perigon’s offering,” said Arthur Ambarik, Perigon’s CEO. “As we continue to expand our team, we aim to bring aboard experienced advisors like Robert who will enhance the services Perigon provides and benefit from the technology, business development, and personalized support we offer.”
In November, Perigon hired Jonathan Robbins as General Counsel and Chief Compliance Officer and Michael Mignosi as the newly created Director of Organic Growth. Additionally, last January, Constellation Wealth Capital took a minority stake in the firm, which held $8.2 billion in client assets as of June 30.
Strategic Partnerships
Sanctuary To Leverage BNY’s Wove Data-Driven Customer Experience Platform
Indianapolis-based Sanctuary Wealth partnered with BNY Pershing to enable all Sanctuary partner firms to access the upgraded Sanctuary One platform powered by BNY Pershing’s Wove, a data technology toolkit that connects and manages an investor’s complete financial picture in one location. The Wove platform incorporates Wove Investor, Wove Data and Wove Advisory.
The Wove platform also includes portfolio construction and analytics tools, trading and rebalancing features, a proposal tool and a client portal integrated with Sanctuary’s existing tech stack. The Sanctuary Wealth network includes more than 120 partner firms in 30 states, with approximately $48 billion in assets on its platform. In September, Sanctuary recruited $2.2 billion Centel Wealth Advisory.
“We believe in empowering advisors to spend more time focused on their clients by providing them with investment technology and solutions to seamlessly connect all the components of their client’s financial picture in one place and meaningfully cuts down on administrative tasks,” said Ainslie Simmonds, Head of Global Strategy, BNY Pershing and President, BNY Pershing X.
Snowden Lane Rolls Out New Retirement Program For Advisors
New York-based Snowden Lane Partners is launching a retirement and monetization program called its Practice Continuation Plan. The income generation program seeks to help senior, retiring advisors gain overall value of up to 250% of their trailing 12-month revenue. Snowden Lane employs 147 total professionals, 82 of whom are financial advisors, across 16 offices around the country.
Senior advisors can opt for an up-front, lump sum payment upon entering the five-year program, accompanied by a revenue-sharing model for retiring and inheriting advisors. The plan provides senior advisors with a succession plan and an acceleration of profit-sharing. It also offers financial support for families in the event of the death of the retiring advisor. Snowden has added 13 financial advisors since September 2023, representing $1.8 billion in assets, and added offices in Florida, Colorado and Pennsylvania in 2024.
“We believe this will serve as another attractive differentiator for prospective advisors considering a boutique firm such as Snowden Lane,” said Rob Mooney, Managing Partner and CEO of Snowden Lane. “We introduced this program earlier this year after discussions with a number of our advisors who are looking to complete their careers at Snowden Lane but would also like to achieve monetization of their practice and ensure business continuity for their clients.”
Promotions & People Moves
Vanguard’s Rotenberg To Head New Vanguard Wealth Management Area
Mutual fund giant Vanguard is set to launch a new financial advice and wealth management division. The new Vanguard channel will be helmed by industry veteran Joanna Rotenberg, whose move to a Managing Director role at Vanguard starts in January.
Rotenberg’s most recent role was at Fidelity, where she served as the President of Personal Investing, running the company’s retirement, brokerage and wealth management businesses. Before that, Rotenberg spent over a decade at BMO Financial Group as a member of the bank’s Executive Committee and served as a Partner at McKinsey & Company, serving clients in wealth and asset management.
“I have always admired Vanguard’s unique structure and client-focused mindset,” Rotenberg said. “I am humbled by the opportunity to lead the new Advice & Wealth Management group and expand Vanguard’s offerings to help more people achieve investment success.”
Chris Latham, Managing Editor at Wealth Solutions Report, can be reached at clatham@wealthsolutionsreport.com.
