This edition of the Deals & Recruiting Roundup features our newest Recruiter of the Month, Ryan Shanks, Chief Growth Officer of Apollon Wealth Management.
We also cover Steward Partners acquiring Mainstay Wealth Management, Savant acquiring Sortino Advisory Partners, Allworth acquiring CCA LLP, Carson taking a minority stake in MAG Wealth Management, Summit Financial taking a minority stake in three firms, Fifth Third Wealth Advisors recruiting a $1.8 billion team, &Partners bringing on 1828 Capital, LPL and Prudential finalizing their strategic relationship, Cetera partnering with Eglin Federal Credit Union, Merchant hiring Matt McPeak as Partner and Managing Director, Beacon Pointe appointing Jon Frojen as CFO, and Elevation Point hiring Jenna Bloomgarden as Head of Marketing and Advisor Experience and Brian Terraciano as Head of Operations.
Larry’s Take
Minority stakes solve a lot of problems for RIA investors that do not need to be in control. It enables buyers to invest in a more diverse array of firms than they could with majority or total ownership stakes, gives sellers comfort that they will retain decision-making capacity while still receiving growth capital, and motivates sellers to continue innovating for their business.
Of course, lack of control for an RIA investor comes with its own challenges, such as limited ability to make personnel and operational changes at those RIAs, potentially lower returns on their investment in the RIAs as a result, and therefore it becomes crucial to identify high-growth RIAs that require relatively small fixes in order to be profitable for the minority stake investor.
This tradeoff can be very worthwhile for investors that have other revenue streams, such as their own in-house RIA, lending and/or support services to sell to RIA partner firms. It also can benefit new capital providers that are seeking to make a positive name for themselves in the RIA space. So the minority stake model will likely become more popular in the near future.
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. Steward Acquires $850 Million Mainstay Wealth Management In New Jersey
Steward Partners acquired Riverdale, New Jersey-based Mainstay Wealth Management, which has $850 million in assets under management (AUM). The team of 14 professionals was previously with Ameriprise. Mainstay is now part of Steward Partners’ Legacy Division. Steward Partners had over $38 billion in assets as of October across 60 offices nationwide.
Mainstay’s leaders, Timothy Burklow Sr. and Matthew Rotella, join Steward Partners as Managing Directors and financial advisors. Chris Rotella and William Lewis join as Senior Vice Presidents and financial advisors. Earlier in November, Steward Partners expanded in Palm Beach Gardens, Florida, with the formation of $175 million AUM G2G Wealth Management.
“Embarking on this new chapter with Steward Partners was the perfect opportunity for us to fully embody our revised namesake, solidifying the continuation of our mission to provide support in every facet possible to unify our clients and team alike,” Burklow said. “We’re very grateful for the path we’ve been on for the past 33 years, and the team at Steward Partners brings us the platform and confidence to begin this new chapter and be a part of something bigger than ourselves.”
2. Savant Acquires $375 Million Sortino Advisory Partners In Kentucky
Rockford, Illinois-based Savant Wealth Management acquired Louisville, Kentucky-based Sortino Advisory Partners, a fee-only RIA with nearly $375 million in client assets. Daniel Hutcherson and Stephen Heitz, the Principals of Sortino Advisory Partners, joined Savant as Managing Directors, financial advisors and member-owners. Savant has approximately $30 billion in client assets across 42 offices in 17 states.
Hutcherson, who co-founded Sortino, is a U.S. Marine Corps veteran and gerontologist. Heitz serves closely-held business owners and senior executives on retirement, estate, charitable planning and aging care strategies. This is Savant’s third acquisition of the year, after Fullerton, California-based Kemp Financial and Brighton, Michigan-based BDK Financial, which brought on a combined $307 million in client assets in September.
“Savant’s business model enables us to partner with firms with specialized knowledge to support our team approach to working with clients,” said Brent Brodeski, Founder and CEO of Savant. “Danny and Stephen are qualified to help clients navigate issues like the financial strain of caring for elderly parents, the need for personalized solutions, and the emotional toll that caregivers undergo as they support aging family members.”
3. Allworth Acquires Accounting Firm CCA LLP In California
Folsom, California-based Allworth Financial acquired the Pleasant Hill, California-based CPA firm CCA LLP, which has 25 experienced tax professionals. Gerardo Alvarado is the Founder and Senior Partner of CCA LLP. Allworth has nearly $25 billion in assets under advisement and 43 offices nationwide. This is its eighth acquisition of 2024 and its 39th since 2018.
Allworth also recently acquired City Fiduciary Group, a 31-member team with approximately $839 million in AUM across offices in Washington and Oregon. The firm acquired Manasquan, New Jersey-based George McKelvey Company in October and Lafayette, California-based Stewart & Patten Company in June.
“The demand from our clients for comprehensive financial planning, including robust in-house tax services, continues to grow,” said John Bunch, CEO of Allworth. “CCA has an exceptional tax team that will help us meet that demand and better serve our clients.”
4. Carson Takes Minority Stake In MAG, Which Acquires Ovation
Omaha, Nebraska-based Carson Group’s partner firm MAG Wealth Management acquired Ovation Wealth Advisors and rebranded to Carson Wealth. Carson Group is taking a 30% equity stake in the $350 million AUM business, which becomes the first Carson Wealth branded location in Minnesota. It has offices in Paynesville, Little Falls and Minneapolis.
MAG Founder and Wealth Advisor Jeremy Willner leads the team of eight along with his son Hayden, who is a Partner and Wealth Advisor. Willner’s firm acquired Premier Financial Resources in 2022. In October, Carson Group acquired Fairmont, Minnesota-based Sweet Financial Partners, a 12-person team that has $1 billion in client assets. Carson Group manages $38 billion in assets across an advisory network of more than 150 partner offices.
“With the addition of Jeremy and his team, we continue to strengthen our Midwest presence and gain a proven team dedicated to client service and multi-generational planning,” said Burt White, CEO of Carson Group, “Their expertise in inorganic growth strategies will enhance our entire network as we continue to evolve in this dynamic industry.”
5. Summit Takes Minority Stakes In Three Firms Representing $420 Million In Assets
Parsippany, New Jersey-based Summit Financial brought three firms with a combined $420 million in AUM into its network. The Summit Growth Partners partnership model took minority stakes in Southeast Financial Group (SEFG), Radiance Private Wealth and Silvertree Retirement Planning, taking its total strategic investments to 16 in 2024.
Raleigh, North Carolina-based SEFG is led by Founder and President Ed Secrest. Radiance is led by Founding Partners and Private Wealth Advisors Gautam Chhada and Randi Engelbrecht, who serve clients in Connecticut, New Jersey and nearby areas. Stevens Point, Wisconsin-based Silvertree is led by CEO Jason Gilsczynski. Summit provides advisors with access to dedicated resources and support including multiple custodial providers, multi-family office services and supplemental growth capital.
“The strategic integration of SEFG, Radiance, and Silvertree into the Summit family not only amplifies our nationwide footprint but also reinforces our commitment to invest in North Carolina, Wisconsin and the Tri-State area,” said Stan Gregor, CEO of Summit Financial Holdings. “This powerful expansion exemplifies our unwavering commitment to fostering exponential growth and market leadership.”
Advisor Transactions
6. Fifth Third Wealth Advisors Bring On $1.8 Billion Team From Truist
Fifth Third Wealth Advisors (FTWA), a multi-custodial RIA subsidiary of Fifth Third Bank, recruited a new team and office in Winston-Salem, North Carolina, that previously managed $1.8 billion in client assets at Truist. Jonathan Cochrane and Spencer Huggins join as Managing Directors while Shannon Shelton joins as a Relationship Manager.
Cochrane has over 23 years of industry experience, Huggins has over 12 years of industry experience, and Shelton has 12 years of wealth management industry experience and an additional six years of banking experience. FTWA also recently brought on an advisor team that had been managing $2 billion in client assets at TIAA. That team includes Scott Bailey, Scott Cislo and Murray Kinlaw, who have offices in Charlotte, North Carolina, and St. Louis.
“It’s my pleasure to welcome this team of committed and proven professionals to Fifth Third Wealth Advisors,” said Eric Housman, President of FTWA. “With more than 55 years of collective experience, their expertise and unwavering dedication will further elevate our capacity to serve clients.”
7. &Partners Recruits Advisors From Wells Fargo, Who Launch 1828 Capital
&Partners brought the newly-formed Fayetteville, Arkansas-based 1828 Capital into its network. The new firm is led by Edward Prewitt, Mark Gilbert and Max Mahler, who all worked at Wells Fargo Advisors, where they reportedly oversaw $1.5 billion in client assets. Prewitt has over 23 years of industry experience, Gilbert has 27 years of experience and Mahler has 14 years of experience.
1828 Capital provides investment and trust management, retirement and investment planning, estate plan consulting, nonprofit and endowment management, retirement plan and 401(k) consulting, as well as tax strategies and tax-sensitive investments. In August, &Partners recruited Jackson, Michigan-based Meridian Wealth Management from Wells Fargo, where it managed $1.4 billion in client assets.
“As 1828 Capital’s dedicated Co-Founder – Managing Director, I am deeply committed to helping my clients achieve financial independence and personal success,” Prewitt posted on LinkedIn. “I enjoy collaborating with my team to deliver thoughtful, customized solutions that help clients navigate life’s milestones with confidence and clarity.”
Strategic Partnerships
8. LPL And Prudential Finalize Strategic Relationship, Build Out Integrations
LPL Financial and Prudential Advisors, the retail division of Prudential Financial, finalized the launch of their strategic relationship that was first announced in August 2023. Prudential’s retail broker-dealer and RIA services and operations has transitioned to LPL Enterprise LLC. LPL now supports more than 2,800 Prudential financial advisors who serve 3.5 million households.
The firms are working together on recruiting to attract top advisors to Prudential. During the past year, LPL invested over $300 million in technology and to integrate and onboard Prudential Advisors. As of Nov. 18, approximately $25 billion in assets from Prudential Advisors were onboarded to LPL, with $35 billion more expected to come in the next several months.
“For Prudential Advisors, this relationship significantly enhances our advisor offering by adding LPL’s wealth management platform, financial solutions and industry-leading advisor and client-support capabilities — building on our strong brand, best-in-class leads programs and supportive culture,” said Brad Hearn, President of Prudential Advisors. “Together, Prudential and LPL are leveraging our collective strengths and core capabilities to benefit financial advisors and their clients, and we are excited to bring this new level of capabilities to our advisors.”
9. Cetera Financial Institutions Partners With $2.8 Billion Eglin Federal Credit Union
Cetera Financial Institutions, a subsidiary of Cetera Financial Group, entered into a networking agreement with Fort Walton Beach, Florida-based Eglin Federal Credit Union to support the delivery of its member-focused investment program, Eglin Wealth Management. The credit union was founded in 1954, serves nearly 125,000 members and has over $2.8 billion in assets as of Sept. 30.
Cetera Financial Institutions, part of Cetera Investment Services, supports the investment programs of more than 450 banks and credit unions. Cetera Financial Institutions has a retention rate of 99%, according to the firm. Cetera Financial Group supports approximately 12,000 financial professionals and their teams, and had over $521 billion in assets under administration and $224 billion in AUM as of June 30.
“We welcome the Eglin team to the Cetera family and appreciate the trust and confidence they have placed in our capabilities and in achieving our shared goals together,” said LeAnn Rummel, President and CEO of Cetera Investment Services. “We look forward to helping the Eglin team expand and enhance their investment program and provide more members with financial planning and wealth management services for years to come.”
Promotions & People Moves
10. Merchant Hires Carlyle Group And Blue Owl Capital Veteran Matt McPeak
New York-based Merchant Investment Management appointed Matt McPeak as a Partner and Managing Director specializing in strategy, acquisitions, debt solutions and alternative investments. He has more than a decade of financial services experience.
McPeak’s responsibilities include seeking investment opportunities and collaborating with leadership teams at partner firms to drive growth initiatives, as well as leading the sourcing and underwriting of private market investment opportunities. Most recently, he was Head of RIA & Family Office and a member of the Private Wealth Leadership Team at Blue Owl Capital. Earlier, he worked in the Private Wealth division of The Carlyle Group.
“Our team is the most valuable asset at Merchant, and we believe our ecosystem will continue attracting top talent. Matt’s choice to join our team is a prime example,” Merchant posted on LinkedIn. “We’re excited to welcome Matt McPeak to the Merchant family, and his deep expertise in #alternativeinvestments & partnering with #wealthmanagers will help drive our continued success.”
11. Beacon Pointe Appoints Jon Frojen As CFO
Newport Beach, California-based Beacon Pointe Advisors hired Jon Frojen as Chief Financial Officer. He has held executive positions in financial services since 1985. Most recently, Frojen was CFO at Osaic. Before that, he was CFO at United Capital Financial Advisors, Cetera as well as an assortment of firms in other sectors. Beacon Pointe has approximately $38 billion in assets under advisement.
In October, Beacon Pointe acquired Lake Elmo, Minnesota-based Landmark Wealth Management Group, which oversees approximately $1 billion in AUM. Shortly before that, Beacon Pointe acquired Pasadena and Newport Beach, California-based Bridge Advisory, which oversees approximately $460 million in assets, and Mt. Pleasant, South Carolina-based Charleston Investment Advisors, which manages $140 million in assets.
“We are thrilled to welcome Jon to the Beacon Pointe leadership team,” said CEO Shannon Eusey. “His substantial expertise in financial strategy and deep knowledge of the wealth management industry will bring valuable insight to our organization. We look forward to working with Jon as we continue to drive growth and enhance our business operations in support of our clients and partners.”
12. Elevation Point Hires Jenna Bloomgarden And Brian Terraciano
Minneapolis-based Elevation Point, a wealth management firm that also serves as an investor and partner for RIAs and independent advisors, appointed Jenna Bloomgarden as Head of Marketing and Advisor Experience and Brian Terraciano as Head of Operations. Bloomgarden has over two decades of industry experience and Terraciano has nearly three decades of industry experience.
Bloomgarden previously served as Director of Marketing & Advisor Development at Summit Financial, and earlier worked at Dynasty Financial Partners and Morgan Stanley. Terraciano most recently served as Senior Director, Wealth Solutions Middle Office at BNY Pershing, and before that held senior roles at Pershing Advisor Solutions. Elevation Point, which launched in June, oversees more than $3.4 billion in AUM.
“Both Jenna and Brian bring invaluable experience to Elevation Point at a pivotal moment as we prepare to transition teams from an oversubscribed pipeline,” said Jim Dickson, Founding Partner and CEO of Elevation Point. “Jenna’s background in marketing, advisor branding, and business development, along with Brian’s deep operational knowledge and dedication to enhancing the client experience, will strengthen our value proposition for advisors seeking independence and growth.”
Recruiter Of The Month
Ryan Shanks, Chief Growth Officer, Apollon Wealth Management
Apollon Holdings – which provides financial planning, wealth management and advisory services through its affiliates, Mount Pleasant, South Carolina-based Apollon Wealth Management and its affiliated RIA, Downers Grove, Illinois-based Apollon Financial – recently brought on several new advisory practices.
Apollon Wealth Management brought on Rockville, Maryland-based CIC Wealth, which includes Ryan Wibberley, Michael Fein, Frank Cappadora, Judy Ann Byrd, Andy Smith, Rich Sebastian, Austin Pearl and Dawn Wright. Apollon Financial brought on Downers Grove, Illinois-based Martin Beck and Fran Gutrich as well as King of Prussia, Pennsylvania-based Jim McGowan. Apollon has approximately $8.75 billion in combined AUM. It has 43 locations across the country, in 34 cities and 18 states.
And now for our Q&A with Ryan Shanks, Chief Growth Officer at Apollon Wealth Management.
WSR: What is Apollon’s advisor growth strategy?
Shanks: Apollon is focused on scaling through a combination of mergers and acquisitions as well as strategic recruitment within existing partner footprints.
For M&A, we look to expand our geographic presence by acquiring companies with an established footprint that aligns with our business model and values. Post-acquisition, we integrate these companies by leveraging their existing infrastructure, talent and market access while enhancing them with Apollon systems and resources.
For recruitment, we aim to strengthen our partner network and expand capacity within geographic regions. As we expand both, our primary objective is maintaining a consistent company culture across geographies and compensation models.
Our partners receive a share of the business profits and are taxed accordingly via Schedule K-1. This structure aligns the partners’ interest with the long-term growth of the company. All other advisors traditionally affiliate as W-2 employees.
WSR: What criteria makes for an ideal advisor or advisory team to join Apollon?
Shanks: We seek advisors who currently offer or desire to offer comprehensive financial planning and wealth management services. The ideal advisor should be able to provide a concierge-level of service to the wealthiest clients and/or businesses, helping them navigate complex financial and family matters.
WSR: How does Apollon aim to stand out to such candidates as the advisory destination of choice?
Shanks: Apollon aims to attract the right advisor by helping them offer a wide range of services to clients to help build long-term, multi-generational relationships. We accomplish this with our holistic service offering, where advisors can offer a wide range of services to clients. We help advisors service a broad spectrum of clients which reduces dependence on a single solution or strategy and helps expand the client deliverable.
Apollon offers sophisticated solutions, so that advisors can work with high net worth clients who require advanced planning and bespoke solutions. Lastly, Apollon advisors have access to innovative financial planning and investment tools, and a collaborative team environment.
Chris Latham, Managing Editor at Wealth Solutions Report, can be reached at clatham@wealthsolutionsreport.com.
