This edition of the Deals & Recruiting Roundup covers Cerity Partners’ merger with Prio Wealth, Mariner’s acquisition of Cardinal Investment Advisors, Mercer Advisors’ three acquisitions, Sanctuary Wealth’s new partnership with Hillguard, Kestra’s partnership with Campus Private Wealth, Sullivan joining Procyon Partners, Strawhecker to run platform transitions for Dynasty and Merrill’s new UHNW group.
Larry’s Take
In June, Mariner advised on $114 billion in assets. After a few major acquisitions, it stands at $550 billion. This continues a streak of increasing acquisition sizes since 2021, when PE firm Leonard Green & Partners took a stake in Mariner. Also supported by Canadian PE firm Penfund, Mariner continues pushing into the stratosphere.
Mariner’s lofty acquisitions push in multiple directions, including M&A support with Woodbridge and now doubling in size with this week’s acquisition of Cardinal in the institutional space. It stands as a prime example of how private capital covets the wealth management space and a possible portent of more megadeals that combine individual and institutional advice.
Wealth management professionals and executives need to take note – private capital is the elephant in the room and it will, eventually, touch your business in some way, which may include giving your competitors abilities and resources that will force you to react. While we wait to see how Mariner will top this, it’s time to make plans to get ahead of the inflows of capital into wealth management.
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. Cerity Partners Merged With $4.1 Billion Prio Wealth
New York-based Cerity Partners has acquired Boston-based Prio Wealth, which has $4.1 billion in assets under management (AUM). The companies will operate under the Cerity Partners name. The firm said the Prio acquisition will further expand its suite of wealth advisory services across family and generational wealth planning, financial and retirement planning, and investment management.
Last spring, Cerity announced that it would manage about $100 billion in client assets after its acquisition and merger with Denver-based Agility. Agility was the investment outsourcing business of investment bank Perella Weinberg Partners.
“Partnering with Prio Wealth reinforces our commitment to delivering integrated, personalized, and diversified wealth advisory solutions that address every aspect of our clients’ financial needs,” said Claire O’Keefe, Partner and Head of Partner Development at Cerity. “Prio’s highly credentialed and experienced team will allow us to continue providing exceptional services, while building our presence in Boston, a market that continues seeing strong demand for best-in-class wealth management capabilities.
2. Mariner’s Acquisition Of Cardinal Investment Advisors Nets $292 Billion In AUA
Overland Park, Kansas-based Mariner Wealth Advisors has acquired Cardinal Investment Advisors, a Chicago and St. Louis-based institutional investment advisor with $292 billion in assets under advisement (AUA). The acquisition increases Mariner’s AUA to about $550 billion and adds about 40 employees to its institutional business.
Cardinal will become the insurance advisory practice within Mariner Institutional. It focuses on insurance and corporate retirement plans, along with healthcare systems, foundations and endowments. The acquisition is expected to close by the end of March.
“This acquisition kickstarts a year that will be filled with growth, innovation, and a relentless pursuit of providing the best client-focused financial services,” said Marty Bicknell, CEO And President of Mariner. “Today marks a defining chapter for Mariner in becoming the premier partner for institutional consulting services. In pairing Cardinal’s expertise with Mariner’s resources, we are equipped to set a new standard in the industry for tailored, innovative solutions that meet the evolving challenges faced by today’s institutional clients.”
3. Mercer Advisors Made Three Acquisitions Worth $250 Million
Mercer Advisors, the Denver-based financial advisor with $70 billion of AUM, has made three acquisitions bringing in a total of nearly $250 million of AUM. It purchased the individual practices of financial advisors Dave Stuehling and John Swanson, who are both based in Bend, Oregon, and Georgia-based Edward Vance Investment Management.
The acquisition of Edward Vance grows Mercer’s footprint in Georgia, where the firm has expanded its client assets from around $550 million in 2017 to over $4.5 billion today. Additionally, Mercer has strengthened its presence in the Pacific Northwest through the acquisitions of Stuehling’s and Swanson’s practices.
“Partnering with experienced, forward-thinking advisors like Dave and John who want to be a part of building the RIA of the future is exactly what energizes us every single day,” said Jessica Caruso, Executive Managing Director at Mercer Advisors. “Our goal is to empower advisors to do what they do best: serve clients and help them reach their goals. Dave and John help us put a tentpole in Bend where we can work together to amplify and simplify the financial lives of more individuals and families.”
Advisor Transactions
4. Sanctuary Wealth Nabs $700 Million Hillguard Wealth From Truist
Miami-based Sanctuary Wealth welcomed Hillguard Wealth Management as its latest Sanctuary Global partner firm. The Hillguard team, formerly affiliated with Truist Wealth, manages $700 million in client assets and consists of Marcello Zaffaroni, CEO; Juan Martin Campuzano, CIO; Ivan Flores, Wealth Associate; and Maria Zaffaroni, Director of Operations.
Hillguard works with an ultra-high net worth (UHNW) client base, servicing approximately 20 U.S. and international families. The partnership gives Hillguard access to Sanctuary’s custodian relationships with Bank of New York and Goldman Sachs. It also gives Hillguard access to Sanctuary Open, a technology-enabled multi-discipline platform, to advise clients on assets held at non-custodial banks worldwide.
To better support international advisors and the unique needs of their affluent clients, Sanctuary established its Sanctuary Global platform in 2021 with teams in Florida and Texas coming from Morgan Stanley and Wells Fargo.
Adam Malamed, CEO of Sanctuary Wealth, said, “Sanctuary wants this kind of business. We have the experience and the platform to support it. We have built out our global platform to address the product, solution and service requirements of wealthy global families. We welcome Marcello and his team and look forward to working together for years to come.”
5. Campus Private Wealth Partnership Brings $400 Million To Kestra Private Wealth Services’ Platform
Austin, Texas-based Kestra Private Wealth Services (Kestra PWS), an RIA subsidiary of Kestra Financial, said that Arlington, Virginia-based Campus Private Wealth has joined its platform. Campus brings $400 million to Kestra PWS.
Campus specializes in guiding clients through all stages of their financial life, from early adulthood until retirement, a strategy tailored by co-founders Bill Milby, CEO and CIO, and Jason Lindner, COO. Kestra PWS provides advisors with back-office support, compliance solutions and technology.
“We wanted to make this move while at the top of our game, ensuring we could deliver an even more customized experience for our clients,” said Milby. “Kestra PWS offers the perfect blend of independence and support, allowing us to focus on what matters most—our clients.”
Promotions & People Moves
6. UBS Veteran Mark Sullivan Joins Procyon Partners To Spearhead Growth In Private Wealth Management
Procyon Partners has appointed UBS veteran Mark Sullivan as Senior Vice President and Senior Private Wealth Advisor, as part of the firm’s growth strategy. Sullivan will join the team at the firm’s Shelton, Connecticut, headquarters, where he is expected to build the firm’s high net worth clientele.
An affiliate of Dynasty Financial Partners, Procyon manages $8 billion in assets. Sullivan spent over 10 years at UBS in the firm’s Private Wealth Division, where he managed $800 million in client assets and $300 in retirement assets. He specializes in advising first-generation entrepreneurs.
“Procyon Partners is a firm that’s truly focused on building its clients’ financial futures,” Sullivan said. “I’m eager to build on that vision and help our clients achieve their long-term goals.”
7. Dynasty Financial Hires Raymond James Veteran Strawhecker For Platform Transitions Role
St. Petersburg, Florida-based Dynasty Financial Partners has hired Lindsey Strawhecker as Director of Transitions. She has nearly two decades of experience in financial operations and advisor onboarding, including 19 years at Raymond James. Strawhecker’s role is to ensure smooth and efficient transition experiences for advisors joining Dynasty’s independent wealth management platform.Strawhecker has held leadership roles in client service, transition management and compliance. She has led transition teams, implemented process improvements and drove technology initiatives for advisor onboarding and support. At Dynasty, she will report to Gordon Ross, Chief Client Officer of Dynasty Financial Partners.
“We’re proud of the top-tier transition team we’ve built, and Lindsey’s expertise will make it even stronger,” said Shirl Penney, CEO and Founder of Dynasty Financial Partners. “Her leadership and fresh perspectives will help us refine our processes and create a smoother experience for advisors going independent.”
Wirehouse Activity
8. Merrill Wealth Management Launches Ultra-High Net Worth Advisory Group
Merrill Lynch Wealth Management has launched an ultra-high net worth (UHNW) advisory group consisting of 25 advisors reporting to Rob Romano, Head of UHNW Advisory Group and Capital Markets Investor Solutions. Romano will report to Brian Partridge, Head of Investment Solutions Group Specialists.
The Investment Solutions Group connects Merrill and Bank of America Private Bank advisors and clients to the Merrill Lynch Investment Advisor Program, alternative investments, capital markets, personal retirement and traditional investments.
“Rapid wealth creation, more intricate financial situations, and the importance of generational wealth transfer is creating a need for more advanced guidance for our UHNW clients’ wealth management needs,” said Romano. “Comprised of investment experts and partnering across the firm to deliver holistic guidance on the issues that matter for UHNW families, this team will be an added resource and tailored support to advisors and their client relationships.”
Julius Buchanan, Editor in Chief at Wealth Solutions Report, can be reached at julius.buchanan@wealthsolutionsreport.com.
