This edition of the Deals & Recruiting Roundup covers CAPTRUST acquiring Boston Financial Management, Mercer Global Advisors acquiring Chapel & Collins and Waypoint Capital Advisors, Waverly Advisors acquiring Buckingham Advisors, Allworth Financial acquiring City Fiduciary Group, Creative Planning acquiring Edmonds Duncan, Integrated Partners supporting the launch of Generation Capital Advisors, Fifth Third Wealth Advisors adding an advisor team in North Carolina, Avantax recruiting Trust Matters Financial, Miracle Mile Advisors opening its first Chicago office, Wealthspire Advisors conducting arts-investor education, EP Wealth Advisors appointing Jorge Bernal as COO and RBC Wealth Management recruiting advisor Julie-Anne Lewis.
Larry’s Take
As we recently covered, Cerulli Associates found that RIA consolidators have grown significantly over the past decade to represent $1.5 trillion in assets under management (AUM) in a trend that has also impacted asset managers and other strategic partners, as centralized technology platforms and succession planning assistance have become essential offerings.
One of the main challenges for RIA owners preparing to sell is how to evaluate the support features of a large buyer before committing to the deal. This is exacerbated by the fact that, in order to stand out from the crowd, each consolidator has its own assortment of advisor-facing services and vendor arrangements, as well as its own unique back-office experts.
That’s why speaking with other RIA owners who have already conducted transactions with such buyers is one of the best ways to make sense of the noise and overcome this hurdle. Although fellow sellers cannot tell you whether a consolidator’s support platform will be the best fit for your team, they can indicate whether the buyer’s platform lived up to their own expectations.
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. CAPTRUST Acquires $5 Billion Boston Financial Management
Raleigh, North Carolina-based CAPTRUST Financial Advisors acquired Boston Financial Management (BFM), which has nearly $5 billion in client assets and a team of 45 professionals. CAPTRUST gains another office in Boston, and two new offices in Cape Cod, Massachusetts, and Portland, Maine. Chairman Richard H. Morse, who founded BFM in 1976, will retire.
The firm provides wealth management, investment advisory, trust and estate planning services for individuals, families, endowments and nonprofits. Berkshire Global Advisors was BFM’s financial advisor in the deal. CAPTRUST surpassed $1 trillion in client assets as of June 30. It has more than 1,600 employees and serves over 35,000 institutional and private clients across more than 90 locations.
“To me, culture means what you value and how you treat people. From the first meeting it was clear that CAPTRUST feels the same and treats their clients and colleagues like we do—genuinely caring about them and working creatively to achieve the best outcomes,” said Louis Crosier, President and CEO of BFM. “I believe that clients will quickly see the value that comes from being part of a larger firm and enjoy the new resources they will have access to.”
2. Mercer Acquires Two RIAs With Combined $1.6 Billion In Denver Area, Minneapolis
Mercer Global Advisors, a subsidiary of Mercer Advisors, acquired the RIAs Chapel & Collins in Fort Collins, Colorado, and Waypoint Capital Advisors in Minneapolis. Both deals closed in late October, a Mercer Advisors spokesperson told WSR. Mercer Advisors, with $66 billion in client assets, is majority owned by Oak Hill Capital, Genstar Capital and Altas Partners.
Waypoint managed almost $1 billion in client assets for ultra-high net worth individuals and families. Chapel & Collins managed about $675 million in assets for over 500 individuals and high net worth families. The RIA advised on corporate retirement plans and provided institutional consulting services. The addition of Chapel & Collins to Mercer boosted the firm’s AUM in Colorado to almost $5 billion.
“Growing our footprint in Greater Denver and Fort Collins helps us deepen our roots in one of our key markets,” said Dave Welling, CEO of Mercer. “By extending our integrated wealth management experience to more families in the Denver area, we’re able to help amplify and simplify their financial lives.”
3. Waverly Acquires $900 Million Buckingham In Ohio
Birmingham, Alabama-based Waverly Advisors acquired Dayton, Ohio-based Buckingham Advisors, which has a team of 38 professionals and over $900 million in AUM across four locations. Jay Buckingham, who founded the firm in 1987, will serve as Regional Director at Waverly, along with Jeff Groezinger who also will serve as Managing Director of Waverly Business Services, a new offering with advanced tax planning and preparation expertise.
The deal is Waverly’s 19th transaction since Wealth Partners Capital Group (WPCG) and HGGC’s Aspire Holdings platform made an equity investment in the firm in December 2021. Waverly is a fee-only RIA with approximately $15.5 billion in AUM. It serves high net worth individuals and families, corporate retirement plans, trusts, endowments and institutions.
“Partnering with Buckingham means that Waverly gains a robust tax preparation and planning service line that will enhance our ability to serve our high-net-worth clients,” said Justin Russell, President of Waverly. “Jay has built a team of talented professionals, and we are thrilled to welcome them to Waverly.”
4. Allworth Acquires $839 Million City Fiduciary Group In Pacific Northwest
Folsom, California-based Allworth Financial acquired City Fiduciary Group, a 31-member team with approximately $839 million in AUM across offices in Washington and Oregon. It provides tax planning and wealth management in the Pacific Northwest. Scott Lowe is Managing Partner of City Fiduciary Group.
This is Allworth’s seventh acquisition this year and its 38th since 2018. Allworth has nearly $25 billion in assets under advisement across 43 offices nationwide. 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 and tax planning continues to grow and this is an exciting partnership that will help us meet that demand,” said John Bunch, CEO of Allworth. “City Fiduciary Group’s expertise and deep roots in the Pacific Northwest make this a very exciting partnership for us.”
5. Creative Planning Acquires $550 Million Edmonds Duncan In Kansas
Overland Park, Kansas-based Creative Planning acquired Lawrence, Kansas-based Edmonds Duncan Registered Investment Advisors, which has six employees, serves approximately 600 families, and had AUM of $550 million as of Sept. 30. Edmonds Duncan provides financial planning, investment management, retirement income and estate settlement services.
Jason Edmonds and Don Duncan founded the firm in 2013, after working at wirehouses. Some of their client relationships began in 1968 under Jason’s father, Steve Edmonds. Edmonds Duncan is Creative Planning’s ninth acquisition since the start of 2023. Creative Planning and its affiliates had over $325 billion in combined AUM as of June 30.
“Edmonds Duncan has excelled in delivering a personalized approach similar to ours, offering clients tailored plans that truly reflect their goals and visions,” said Peter Mallouk, CEO of Creative Planning. “Their strong foundation and local presence in our home state significantly extends Creative Planning’s reach.”
Advisor Transactions
6. Integrated Partners Supports Launch Of Boston-Based Affiliate Partner GCA
Waltham, Massachusetts-based Integrated Partners, which has over $20 billion in assets under advisement, supported the launch of a new affiliate partner, Boston-based Generation Capital Advisors (GCA). GCA provides wealth management services including tax, estate and investment strategies for wealthy families and business owners. It will access The Integrated CPA Alliance program while aiming to attract new clients and move upmarket.
GCA Founder Samuel Diarbakerly has nearly a decade of industry experience. Most recently, he served as Private Wealth Advisor, Senior Vice President at Claro Advisors. He previously worked at Merrill Lynch. Diarbakerly will divide his time between Massachusetts and Florida. He is joined by Rex A. Berger and Brandon Franco. Integrated Partners has more than 212 advisors, over 190 CPAs and 116 regional offices nationwide.
“Sam embodies the type of growth-focused, career-driven, next-generation advisor we are primed to support here at Integrated,” said Robert Sandrew, Chief Growth Officer at Integrated Partners. “I look forward to seeing the GCA team thrive as they collaborate with our business owner solutions team to develop the firm’s HNW and business owner client services.”
7. Fifth Third Adds $2 Billion Advisor Team, Office In Charlotte
Fifth Third Wealth Advisors (FTWA) expanded its presence in Charlotte, North Carolina, with the addition of an advisor team that had been managing $2 billion in client assets. The team includes Scott Bailey, Scott Cislo and Murray Kinlaw, who were each named a Managing Director for FTWA. Kinlaw and Cislo are located in the new Charlotte office. Bailey is based in St. Louis.
Fifth Third Bank launched FTWA in 2022. FTWA now has nine advisor teams with additional offices based in Naples and Tampa, Florida; Springfield, Illinois; Westchester, New York; Pittsburgh; Dallas; and Atlanta. In September, FTWA announced that it surpassed $2 billion in AUM, less than six months after it passed $1 billion in AUM. In May, the firm opened its Dallas office.
“We are excited to welcome this team of dedicated and trusted professionals,” said Eric Housman, President of FTWA. “At FTWA, we believe we offer the look, feel, and agility of an independent boutique, supported by a top-performing regional bank.”
8. Avantax Recruits Advisor Carolyn Bare In South Carolina
Avantax, a tax-focused financial planning and wealth management subsidiary of Cetera Holdings, recruited independent advisor Carolyn Bare, who founded Greenville, South Carolina-based Trust Matters Financial earlier this year. The firm works with small business owners as well as clients seeking guidance on legacy planning and wealth transfers.
Bare has over 16 years of industry experience. She previously operated a consulting firm that educated financial advisors on advanced trustee services, and was an economics instructor at California and Nevada universities while serving as an advisor. Avantax’s business units collectively had $92.8 billion in assets under administration as of Dec. 31.
“The single most advantageous aspect of choosing Avantax over other broker/dealers was being able to transition nonqualified accounts without taxable consequence to the client,” Bare said. “Advisors have been asking the industry for a tax software overlay product for decades and Avantax has the solution.”
9. Miracle Mile Opens Chicago Office
Los Angeles-based Miracle Mile Advisors, which manages $6.5 billion in assets, opened its first Chicago office, which is led by Chief Investment Officer Matt Dmytryszyn, whom the firm brought onboard in April from Telemus Capital.
In February, Miracle Mile acquired Chicago-based Advisory Partners, which operated a family office model for ultra-high net worth clients and had approximately $250 million in client assets. Miracle Mile also has teams in San Francisco, New York, San Diego, Seattle, the Baltimore-Washington, D.C. area and Portland, Oregon.
“Chicago and the surrounding area is a vibrant locale that presents an exciting opportunity for Miracle Mile,” said Bruce Milam, CEO of Miracle Mile. “Our team’s expertise in serving diverse high-net-worth clients, combined with our strategic investment capabilities led by CIO Matt Dmytryszyn, allows us to deliver unparalleled value to Chicago’s sophisticated investor base.”
Strategic Partnerships
10. Wealthspire Launches Arts-Investor Education As Part Of Family Office Services
Wealthspire Advisors – a subsidiary of NFP that is itself a subsidiary of Aon – expanded its family office services by launching Art InSpired. The initiative promotes investor education on the financial appreciation of art and collectibles, hosted and sponsored events, and art-focused thought leadership. The firm also is collaborating with the Museum of Contemporary Art in Westport, Connecticut.
During the past year, Wealthspire launch Wealthspire Trust; added family office accounting services; and expanded its team of wealth strategy professionals specializing in estate planning, wealth transfer and taxation. The firm had nearly $29 billion in AUM as of Sept. 30 across 24 offices in 13 states, and more than 120 advisors.
“Multi-generational families’ expectations are evolving beyond traditional wealth management – collecting and investing in art provides them with an opportunity to further diversify their portfolios,” said Mike LaMena, CEO of Wealthspire. “Our people bring significant expertise in working with professional artists and established art collectors.”
Promotions & People Moves
11. EP Wealth Recruits Former SageView COO Jorge Bernal
Torrance, California-based EP Wealth Advisors appointed Jorge Bernal as Chief Operating Officer. He will lead EP Wealth’s Wealth Advisory, Marketing, Investments and Wealth Management Services. Bernal has over 30 years of industry experience. He most recently was COO and Head of Wealth Management at SageView Advisory Group. Before that, Bernal worked at Goldman Sachs, United Capital, Fidelity and J.P. Morgan.
In August, EP Wealth appointed Megan Glover to the executive team as the firm’s first Chief People Officer. She has over 20 years of experience leading human resources strategy, mainly in financial services. EP Wealth is a fee-only RIA with over $28.9 billion in assets as of Sept. 30, with more than 41 offices across 13 states. It is led by CEO Ryan Parker, Co-Founders and Managing Directors Derek Holman and Brian Parker, and Executive Chair Patrick Goshtigian.
“Brian and Derek are advisors, continuing to serve their clients while the firm they founded is led by Ryan and the outstanding senior management team,” Bernal said. “In my experience that is unique, and combined with the fact that the firm continues to be primarily owned and fully operated by the team doing the work was another strong component in my decision to join EP Wealth.”
Wirehouse / Big Bank Activity
12. RBC Recruits $330 Million Julie-Anne Lewis From Kestra In Virginia
RBC Wealth Management recruited Julie-Anne Lewis and her Senior Client Associates Kathleen Garrison and Yvonne Gough to its Tysons, Virginia branch, bringing over $330 million in AUM. Lewis, who joins from Kestra Private Wealth Services, runs Middleburg Wealth Management at RBC Wealth Management.
In October, RBC recruited two teams from Morgan Stanley. Baltimore-based The Quarry Lake Group oversaw $1 billion in assets and Westport, Connecticut-based The Smalley Girardi Group had over $400 million in AUM. In the U.S., RBC Wealth Management had $619 billion in total client assets as of July 31, across more than 2,100 advisors operating from 191 locations. It is a subsidiary of Royal Bank of Canada.
“I am excited to continue to offer our clients investment management, wealth planning, first class service and an overall client-centric approach,” Lewis said. “I look forward to RBC Wealth Management supporting our team so that our clients receive meaningful and timely research, along with access to investment services that fit our clients’ unique and evolving needs.”
Chris Latham, Managing Editor at Wealth Solutions Report, can be reached at clatham@wealthsolutionsreport.com.
