This edition of the Deals & Recruiting Roundup covers Cetera agreeing to acquire Concourse from Protective, Cresset acquiring CH Investment Partners, Allworth acquiring George McKelvey Company, Cerity Partners merging with SBC Wealth Management, MAI buying Halpern Financial, Robertson Stephens acquiring CAFG Private Wealth, BlackRock and J.P. Morgan Asset Management investing in Dynasty, Oppenheimer recruiting advisors in three states, Equitable Advisors recruiting Hamada/Kim Financial, Family Office Resource Group launching its services platform, Perigon hiring David Scarpello as Chief Financial Officer, and Realta Wealth appointing Paul Tyler as Director of Business Development.
Larry's Take
Another week of spectacular deal flow begets more confidence that 2024 will be an uptrending year in wealth management M&A. At this point, billion-dollar acquisitions have become standard and even acquisitions that exceed $10 billion occur on a regular basis. Yet perhaps the most interesting deal here is not an RIA or broker-dealer, but the minority capital raise by Dynasty.
The firm basically blazed the trail for platforms supporting RIAs with a wide array of services, from technology, marketing and compliance to investments, consulting and growth capital. That BlackRock and J.P. Morgan, two of the biggest names in global finance, staked Dynasty is proof that the independent channel has taken center stage in wealth management.
Still, wirehouses are go-to destinations for many wealthy clients due to the peace of mind that brand recognition and longevity of operations often provides. Wirehouses also remain excellent training grounds for entrepreneurial advisors with big books of business who eventually break away. Dynasty’s recent institutional backing may even help accelerate that exodus.
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. Cetera Agrees To Acquire Concourse From Protective
Cetera Financial Group agreed to acquire through asset acquisition Birmingham, Alabama-based Concourse Financial Group Securities (CFGS), a subsidiary of Protective Life Corporation that comprises Protective’s affiliated retail distribution system, dually registered broker-dealer and RIA. Morgan Stanley served as financial advisor to Protective and to CFGS.
The deal is expected to add approximately 350 financial professionals who oversee more than $12 billion in assets under administration and $4 billion in assets under management (AUM) to Cetera Wealth Partners. Cetera acquired Securian Financial Group’s retail wealth business last year, Voya Financial Advisors’ independent financial planning channel in 2021 and the assets of Foresters Financial’s U.S. brokerage and investment advisory business in 2019.
“Cetera’s community architecture and proven succession solutions are a natural fit for our business and we have a significant alignment of shared strategic objectives,” said Libet Anderson, President of CFGS. “We look forward to a bright future together with Cetera.”
2. Cresset Acquires $6.2 Billion CH Investment Partners
Chicago-based Cresset Asset Management acquired Dallas-based CH Investment Partners, a $6.2 billion multi-family office and private investment firm serving ultra-high net worth families. The combined firm will manage over $62 billion in assets. As a result of the deal, Cresset will gain 37 employee partners.
Mike Silverman and Kirk Rimer founded CH Investment Partners. It provides 64 families with wealth advisory and family office services, and its alternative investment platform also serves 155 families or platform partners. The firm has additional offices in Tulsa, Oklahoma, and Charlotte, North Carolina. In June, Cresset acquired The Connable Office, a Kalamazoo, Michigan-based multi-family office organized as a private trust company.
“Cresset and CH Investment Partners share a family-first orientation that prioritizes high-touch service to consistently produce deeply impactful results,” said Avy Stein, Co-Founder and Co-Chairman of Cresset. “Cresset is excited to partner with these talented professionals, welcome new families, and extend access to new areas of private investment capabilities.”
3. Allworth Acquires $1.1 Billion George McKelvey Company
Folsom, California-based Allworth Financial acquired Manasquan, New Jersey-based George McKelvey Company, which manages over $1.1 billion in assets. The deal takes Allworth’s total offices to 43 across the country. Robert McKelvey, Robert A. Giunco, Jr., and Richard Looney have been equal owners of George McKelvey Company, which was founded in 1960. Its nine advisors and eight support staff will join Allworth.
Allworth has approximately $22 billion in assets under advisement. In June, it acquired Lafayette, California-based Stewart & Patten Company, which had over $1 billion in AUM as of its February SEC ADV filing. In December, Allworth acquired Silicon Valley Wealth Advisors (SVWA), which oversaw $376 million in San Jose and Half Moon Bay, as well as Hall Private Wealth Advisors (HPWA), which oversaw $291 million in San Diego.
“The addition of George McKelvey Company represents an important move in our ongoing mission to provide exceptional financial guidance across the nation,” said Allworth CEO John Bunch. “Their strong presence in New Jersey and their impressive track record perfectly aligns with our growth objectives and commitment to client service.”
4. Cerity Partners Merging With $1 Billion SBC Wealth Management
New York-based Cerity Partners is merging with Indianapolis-based SBC Wealth Management, which has approximately $1 billion in AUM. SBC, which was founded in 1983, primarily works with individuals on strategies for current income, cash flow and long-term capital appreciation. The firm’s CEO, Patrick Morrow, joined as an advisor in 1987.
Last month, Cerity announced its merger with Touchdown Ventures, a manager of venture capital for corporations that will operate as Cerity Partners Ventures (CPV) and integrate into the firm alongside Cerity’s other services. Earlier this year, Cerity also acquired $200 million Keating Wealth Management and announced its merger with Agility, both based in Denver. The Agility deal was anticipated to result in Cerity managing a total of about $100 billion in assets.
“Merging with Cerity Partners is a natural progression of our 40-year mission to deliver exceptional wealth management solutions,” Morrow said. “Our shared commitment to a client-first approach makes this partnership an ideal fit. Together, we’ll deepen our wealth management capabilities and help our clients achieve their financial goals.”
5. MAI Buys $1.2 Billion Halpern Financial
MAI Capital Management acquired Halpern Financial, an independent RIA with $1.2 billion in AUM as of Sept. 30. The acquisition expands the presence of Cleveland-based MAI, which specializes in comprehensive investment and financial planning for high net worth investors.
Founded by its President, Ted Halpern, in 1991, Halpern Financial has offices in Ashburn, Virginia, and Rockville, Maryland, along with a presence in Naples, Florida. The company is a fee-only independent fiduciary. Ted Halpern will assume the title of Regional President at MAI. The transaction is MAI’s 40th acquisition since 2018 and its eighth of 2024. MAI has offices across 16 U.S. states, a team of 450 people, and, as of June 30, $23.6 billion in AUM.
“We were drawn to the Halpern team because of their passion for not only managing their clients’ money, but also providing them with the financial education they need to thrive for the long term,” said Rick Buoncore, Executive Chairman at MAI. “Ted and his team have longstanding success in valuing, uplifting, and serving their clients, and we look forward to partnering with them to continue that work.”
6. Robertson Stephens Acquires CAFG Private Wealth, Surpasses $7 Billion
San Francisco-based Robertson Stephens acquired North Barrington, Illinois-based CAFG Private Wealth, an RIA managing over $240 million in assets that focuses on financial planning and tax preparation. Tom Chernesky, Founder of CAFG Private Wealth, joins Robertson Stephens as a Managing Director and Principal, along with his colleagues John Dorn, Megan Mikusa and Dan Zarzynski.
The deal is Robertson Stephens’ fifth acquisition of the year and its first in the Chicago area. As a result, the firm surpassed $7 billion in assets across 24 locations. Earlier this year, Robertson Stephens added $530 million Ratio Wealth Group in Denver; $360 million Rain Capital in Portland, Oregon; $118 million Three Points Financial in Colorado Springs, Colorado; and $180 million The Thrush Group in Westport, Connecticut.
“CAFG has built an excellent practice by providing each client with a lifetime of financial guidance through personalized financial planning. They are a perfect fit and a great addition to the firm,” said Raj Bhattacharyya, CEO of Robertson Stephens. “We are also thrilled to open our first office in the greater Chicago area. This is a key region for the firm as we continue our growth, and we look forward to Tom and the team anchoring our expansion into the Midwest.”
7. BlackRock And J.P. Morgan Asset Management Stake Dynasty
BlackRock and J.P. Morgan Asset Management are the latest investors in Dynasty Financial Partners, which closed a minority capital raise designed to drive its ongoing growth. Several of Dynasty’s longstanding investors and members of its Board of Directors supported the round, along with three strategic investors, including new investors BlackRock and J.P. Morgan Asset Management, along with existing investor Charles Schwab.
All proceeds raised will be used to enhance Dynasty’s platform. Dynasty also has a $50 million unused credit facility from Citibank, Goldman Sachs, J.P. Morgan, RBC Capital Markets and UMB Bank. Dynasty’s network includes RIAs that leverage Dynasty’s technology, services, turnkey asset management program (TAMP), digital lead generation services, capital solutions and investment bank. The company has 58 network partner firms, representing more than 400 advisors with over $100 billion in platform assets.
“I could not be more excited for our clients as we continue to make significant investments in technology, talent, and capabilities to serve them better,” said Shirl Penney, CEO and Founder of Dynasty. “Enhancing our fortress balance sheet will allow us to provide more capital in support of our clients who are looking to grow their businesses via M&A or achieve succession planning goals.”
Advisor Transactions
8. Oppenheimer Enters Memphis, Recruits In Atlanta And Virginia
Oppenheimer’s wealth management unit entered Memphis, Tennessee, opening an office and recruiting Alan Richmond, Executive Director – Investments, and Clayton Ellis, Director – Investments. The firm also recently recruited Aaron Stowell as Branch Manager of its Atlanta office, coming from Morgan Stanley; and Mark Hovanic as Executive Director and Branch Manager of its Richmond and Virginia Beach, Virginia, offices, coming from J.P. Morgan.
The firm also appointed Todd Wiggins as Regional Director of its Dallas-Fort Worth Region. He joined Oppenheimer in 2016 and has served as Managing Director of Investments and Branch Manager in the Atlanta office. In August, the firm held its Next-Gen Peer-to-Peer Forum at the firm’s headquarters in New York, for nearly 60 advisors across 25 offices nationwide. Oppenheimer also provides securities brokerage and investment banking services.
“Memphis has a strong and deeply rooted financial services community, and we are thrilled to be a part of it,” said Ed Harrington, Executive Vice President of the Private Client Division at Oppenheimer. “Establishing our presence in this iconic city with seasoned professionals such as Alan and Clayton only adds to our excitement. Not only do they share our passion for capital markets, investing and client service but they appreciate our firm’s unwavering commitment to becoming a positive force in the communities where we do business.”
9. Equitable Advisors Recruits $300 Million Hamada/Kim Financial
Equitable Advisors recruited Shawn Hamada, Anna Kim, Sonnie Koko and their five team members from Osaic, where they managed over $300 million in combined client assets. The Honolulu-based team operates as Hamada/Kim Financial. Hamada and Kim started their financial services careers at AXA Advisors, which is now Equitable Advisors.
The business had approximately $94 billion in assets under administration as of June 30 across more than 4,300 financial professionals nationwide. Last month, Equitable Advisors recruited the father-son team of Mark and Jeff Spencer along with Jerome Hartl and Kirt Kilbourne in Traverse City, Michigan. In June, the business recruited the Roanoke, Virginia-based practice Star City Private Wealth.
“At the end of the day, it’s all about our clients. We’re always striving to create a better and more personal experience,” Kim said. “Moving to Equitable Advisors gives us the resources, infrastructure and technology to help accomplish this goal with our own unique touches thanks to the flexibility the firm offers.”
Strategic Partnerships
10. Family Office Resource Group Launches Advisor Services Platform
Family Office Resource Group (FORG) announced its launch and investment from capital provider 4100FS. FORG provides white-labeled offerings for wealth management and professionals services firms serving ultra-high net worth clientele, including outsourced CFO services, accounting, business legacy planning, risk management, philanthropy consulting, concierge services, family governance and advisory firm resources.
The FORG leadership team includes 20 executives with a variety of financial services backgrounds. FORG has offices in Boca Raton and Naples, Florida; Boston; Chicago; Dallas; New York; and Washington, D.C. With 25 years of experience in financial services, FORG Founder and CEO Brian Weiner has advised a global clientele on strategic family planning and succession planning, as well as provided assistance on risk management, tax and accounting services.
“FORG will disrupt the wealth management industry by empowering wealth management professionals and service providers with solutions that differentiate their practices and allow them to deliver a first-class experience to clients,” Weiner said. “A lot of the professional services providers lack the bandwidth or don’t necessarily have the budget. It’s expensive to hire and to manage, and that’s where FORG comes in.”
Promotions & People Moves
11. Perigon Hires New CFO, David Scarpello, From Pathstone
San Francisco-based Perigon Wealth Management added David Scarpello as CFO, Brian McGunnigle as Director of Operations and Debra Dunham as Director of Transitions and Integrations. McGunnigle’s and Dunham’s roles are newly created. The management team additions are intended to support the firm’s continued expansion through organic growth and acquisitions.
Scarpello was previously CFO at Pathstone, where he led M&A support, financial and accounting practices, and strategic financial planning efforts. Prior to Pathstone, he served as CFO and in other executive roles at several financial services and fintech providers. He replaces Chuck Pinson-Rose, who continues at the firm as Managing Director, Finance and Investment, and will dedicate more time to his role as an investment advisor.
“A decade ago, Perigon had two locations and less than $150 million in assets under management,” said Arthur Ambarik, the firm’s CEO. “We’re now at nearly 20 locations and approximately $8.2 billion. This kind of growth needs additional executive and operational expertise to capitalize on new opportunities, and we’re thrilled to have attracted such incredible talent to our team.”
12. Realta Appoints Paul Tyler As SVP, Director Of Business Development
Realta Wealth appointed wealth management veteran Paul Tyler as a Senior Vice President and Director of Business Development. Tyler will lead Realta’s national recruiting efforts, seeking financial professionals currently affiliated with large independent platforms who are looking for a firm with a boutique culture and bespoke service model. He will report directly to CEO Kevin Keefe.
Tyler will lead Realta’s business development team and be involved in the full recruitment cycle, from building a pipeline and coordinating home office visits to closing agreements with new advisors. Before joining Realta, Tyler worked for over 16 years at Ameriprise, rising to Regional Director of Experienced Advisor Recruiting.
“Realta is a firm on the move, and I am thrilled to be here at this inflection point for our industry,” Tyler said. “With large independent broker-dealers giving up their cultures for the sake of building scale, many advisors want to make a change. Realta is committed to becoming the destination of choice for accomplished advisors on the move who want the personal connections and exceptional service experience of a partner investing in their future and sees them as much more than just another rep code.”
Chris Latham, Managing Editor at Wealth Solutions Report, can be reached at clatham@wealthsolutionsreport.com.
