This edition of the Deals & Recruiting Roundup covers CI Financial agreeing to go private, Constellation Wealth Capital investing in Cresset, Modera acquiring Bay Point Wealth, Mercer acquiring Frango Financial, Equitable recruiting Christoper Comer and Andrew Minker, Avantax recruiting Andrew Erickson, a donation establishing the Langston Wealth Management Center at UT Austin, Perigon hiring Jonathan Robbins as General Counsel and CCO and Michael Mignosi as Director of Organic Growth, PNC hiring Brendan Krebs as Wealth Advisor team leader, Bank of America recruiting Phillip Edwards and Lauren Stuhmer from Citi, and UBS recruiting four advisors from Citi and Wells Fargo.
Larry’s Take
The CI Financial agreement to go private demonstrates that the benefits of becoming a publicly traded company have their limits for financial services firms, and wealth management businesses in particular. Access to such equity capital comes with intense scrutiny of quarterly performance reports, including scrutiny of how the publicly traded company handles its debt.
Privately held financial services firms can have more freedom to pursue growth of their market share, business lines and/or revenues – as well as more freedom to streamline operations and eliminate redundancies – without attracting unwanted outside attention. On the other hand, buyouts also come with new owners and thus new decision-makers to satisfy.
LPL Financial, Ameriprise and Raymond James are relatively rare as large publicly traded companies known mainly for wealth management, although they all provide other services as well. Meanwhile, the gamut of banking services that accompany the wirehouses suggests business line diversification may help to sustain a publicly traded capital 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
1. Corient Parent CI Financial To Be Taken Private In CA$4.7 Billion Deal
CI Financial agreed for an affiliate of Mubadala Capital, the alternative asset management division of Abu Dhabi-owned Mubadala Investment Company, to take CI private in a transaction valued at about Canadian $4.7 billion. The deal is expected to close in the second quarter of 2025. CI shareholders will receive CA$32 in cash per share.
The offer, which was unanimously approved by a special committee of independent members of CI’s Board of Directors, values the enterprise at about CA$12.1 billion. The firm said that the transaction will provide it with long-term, stable capital and support its growth strategy as a wealth and asset manager, as well as its expansion in the U.S., where it operates as Corient.
“Mubadala Capital invests with a long-term outlook and represents long-term capital – providing stability and certainty for CIʼs clients and employees,” said Kurt MacAlpine, CEO of CI. “With this transaction, CI has never been better positioned to fulfil our mission of delivering outstanding services and solutions to our clients.”
2. Constellation Invests $150 Million Minority Stake In $60 Billion Cresset
Constellation Wealth Capital (CWC) invested $150 million for a less than 10% minority stake in Cresset, a multi-family office business with $60 billion in assets under management (AUM). CWC is a long-term strategic investor. Cresset aims to use the capital to enhance its platform, technology and recruitment of teams. Employees and clients remain its majority owners.
Strategic advisors on the transaction for the Chicago-based firms included Moelis & Company, Goldman Sachs, Latham & Watkins, ArentFox Schiff, Deloitte, KPMG, Kirkland & Ellis, Houlihan Lokey and William Blair. In November, CWC hired Seth Healy – former Managing Director, Investor Relations, at SVPGlobal – as Managing Director and Head of Business Development. In October, Cresset appointed Jessica Malkin as Chief Growth Officer and Executive Managing Director.
“We are thrilled to invest in a firm that is so singularly focused on client success and that is reimagining what a multi-family office can and should provide to successful families,” said Karl Heckenberg, President and Managing Partner of Constellation Wealth Capital. “We share Cresset’s 100-year vision and are committed to investing in Cresset for the long-term benefit of client families.”
3. Modera Acquires $467 Million Bay Point In Maryland
Westwood, New Jersey-based Modera Wealth Management acquired Bay Point Wealth, an RIA with offices in Annapolis and Stevensville, Maryland, and $467 million in AUM as of Sept. 30. Bill Hufnell, Founder and Principal of Bay Point, started the firm over 25 years ago. Bay Point has eight employees, including four advisors.
They provide financial planning and investment management to high net worth individuals and families, business owners, corporate executives, medical professionals, surviving spouses and people with special needs. Modera, a fee-only firm with $12.5 billion in AUM as of Sept. 30, was founded in 1983. It provides portfolio management and financial planning including retirement planning, estate planning, income tax planning and risk analysis.
“As the founder of Bay Point, I unequivocally believe that transitioning our ownership to Modera Wealth is a picture-perfect move,” Hufnell said. “I am confident that this new chapter will enhance our capabilities and offer our talented team even greater opportunities for development and career advancement.”
4. Mercer Acquires $110 Million Frango Financial In Washington, D.C.
Denver-based Mercer Global Advisors acquired Frango Financial, which manages approximately $110 million in client assets and primarily serves clients in Washington, D.C., Virginia, Maryland and South Carolina. The firm consists of Frances “Fran” Goldman, President and Founder of Frango Financial, and advisor Pamela Postma Khinda.
Goldman started Frango Financial in 2011. It provides investment management, retirement planning, insurance and risk management, education funding, cash flow management, and tax and estate planning services. Mercer Advisors – a parent company of Mercer Global Advisors that is majority owned by Oak Hill Capital, Genstar Capital and Altas Partners – has $66 billion in client assets.
“Our commitment is to deliver value that exceeds our fee, and it was important for us to identify a partner with whom we had strong cultural and fiduciary alignment,” Goldman said. “We are excited to join forces with Mercer Advisors and leverage their expanded resources to help us further secure our clients’ financial futures.”
Advisor Transactions
5. Equitable Recruits Advisors In Texas, California With Over $200 Million In Assets
Equitable Advisors recruited Hallsville, Texas-based Christoper Comer, who managed $125 million in assets at Edward Jones, and Campbell, California-based Andrew Minker, who oversaw nearly $100 million in assets at Ameriprise. Comer’s Sentry Wealth Group serves individuals, families and small businesses. Minker, who has more than 25 years of industry experience, is transitioning from working as a solo advisor to building a team for continuity.
Equitable Advisors has over $100 billion in assets under administration (AUA), according to a Nov. 4 announcement on the third quarter results of parent company Equitable Holdings, and approximately 4,400 financial professionals nationwide. In October, Equitable Advisors recruited Shawn Hamada, Anna Kim, Sonnie Koko and their five team members from Osaic, where they managed over $300 million in combined assets.
“Equitable Advisors stood out from other firms I was considering because the leaders took the time to understand what matters most to my clients,” Comer said. “Equitable Advisors’ dedication to recruiting and developing early career advisors gives me access to a talent pool to expand my practice, allowing me to deliver the care and expertise my clients have come to expect, both now and in the future,” Minker said.
6. Avantax Picks Up $143 Million Advisor From Edward Jones
Cetera Holdings-owned Avantax added advisor Andrew Erickson, Founder of Park Ridge, Illinois-based ClearGuide Wealth, from Edward Jones, where he had about $143 million in AUA as of July 30. He was with Edward Jones for eight years, and holds a Certified Exit Planning Advisor (CEPA) certification from the Exit Planning Institute.
Avantax announced in October that it added 10 independent advisors with about $390 million of combined AUA year-to-date at that point. In May, Avantax announced that it acquired the wealth management business of Integrated Tax & Wealth Strategies, which already was affiliated with Avantax and had $760 million in client assets as of Dec. 31. In 2023, Cetera acquired Avantax in a transaction valued at about $1.2 billion. Avantax had $92.8 billion in AUA as of Dec. 31.
“Having more tools and flexibility and being able to give my clients a better experience compared to where I was before … was my main reason for switching to Avantax,” Erickson said. “What sealed the deal for me is the relationship Avantax has with CPAs and Avantax’s deep understanding of how to work seamlessly with tax professionals including knowing what information is most valuable to them. I found that very compelling.”
Strategic Partnerships
7. Donation Establishes Langston Wealth Management Center At UT Austin
Republic Capital Group Founder and CEO John Langston and his wife, Candace, a Vice President at the investment bank for wealth and asset management firms, donated to name the Langston Wealth Management Center at The University of Texas at Austin McCombs School of Business. In 2022, they started the John and Candace Langston Fellowship at McCombs, awarded annually to students admitted to the wealth management program.
New York-based Republic Capital Group has branches in Dallas, Houston and West Palm Beach, Florida. It handled transactions for over $150 billion in client assets from 2022 to 2023 and has over $300 billion in total transaction value. In September, Merchant Investment Management, a strategic and capital partner to financial services companies, took a non-controlling minority stake in Republic Capital Group.
“Candace and I strongly believe that the wealth center, being part of an elite business school, will produce a much higher-level program and, therefore, a much higher-level graduate,” John Langston said. “The opportunity to invest in the next generation of wealth management leadership was a chance to help fulfill our purpose in life. We just couldn’t pass it up.”
Promotions & People Moves
8. Perigon Hires General Counsel / CCO, And Director Of Organic Growth
San Francisco-based Perigon Wealth Management hired Jonathan Robbins as General Counsel and Chief Compliance Officer, and Michael Mignosi in the newly created role of Director of Organic Growth.
Before Perigon, Robbins was Senior Vice President and Chief Compliance Officer for LPL Financial’s advisory businesses. He will report to Perigon CEO Arthur Ambarik. Mignosi most recently served as Director, Marketing at Cresset Partners. He will report to Maria Daley, Perigon’s Head of Advisor Success and Integration. The firm held $8.2 billion in client assets as of June 30.
“We strive to create a culture of partnership among our leadership team that serves our advisors’ best interests,” Ambarik said. “We worked closely with our private-equity partner Constellation Wealth Capital to identify the right people with the experience and potential to continue growing with our team. It was critical to find people who share Perigon’s core values of accountability, authenticity and positivity. Jonathan and Michael embody these characteristics, and we’re thrilled to have them both on board.”
9. PNC Hires Wirehouse Veteran Brendan Krebs To Lead Wealth Advisor Team
PNC Bank hired Boston-based Brendan Krebs as Managing Director to lead the Wealth Advisor team at PNC Investments (PNCI). He will report to Richard Guerrini, President and CEO of PNCI, and will manage PNCI’s Wealth Advisors. Krebs has over 25 years of industry experience.
Most recently, he served as Head of Advisor Recruiting and Leadership Development at Wells Fargo Advisors, where he worked for nearly a decade. Earlier in his career, Krebs spent 15 years at Merrill Lynch, first as an advisor and ultimately as Director – National Business Development Officer.
“PNCI has a tremendous reputation within the financial services industry for helping clients identify their financial objectives and execute on their financial plans,” Krebs said. “Advisors are the backbone of PNCI’s business model, and I look forward to strategically building out our Wealth Advisor team so they can best serve both our current and future clients.”
Wirehouse Activity
10. Bank Of America Recruits $7 Billion Private Banking Duo From Citi
Bank of America Private Bank recruited former Citi private bank executives Phillip Edwards and Lauren Stuhmer to its Palm Beach, Florida, office. Edwards joined as Managing Director and Stuhmer joined as Senior Vice President. They reportedly managed approximately $7 billion in client assets at Citi.
Edwards has approximately 30 years of financial services experience and Stuhmer has over 17 years of financial services experience. Edwards worked at Citi for over 11 years, and before that worked at several firms including J.P. Morgan and Charles Schwab. Stuhmer worked at Citi for over three years and before that worked at J.P. Morgan and Deutsche Bank.
“As we expand our presence in the ultra-high net worth space, I am pleased to to [sic] announce Phillip Edwards and Lauren Stuhmer, CFP® are joining our Palm Beach team,” Woodward Middleton, Market Executive for East Coast Florida and Managing Director, Southeast Family Office Executive at Bank of America Private Bank, posted on LinkedIn.
11. UBS Recruits 4 Advisors In Miami Who Collectively Oversaw Nearly $2 Billion
UBS recruited four advisors to its Private Wealth Management team in Miami. The AMD Wealth Partners team of Ary Velasco, Michael von Borsig and David Cardenas joined from Citi Private Bank while former Wells Fargo Private Banker Jose Garcia joined VPHN Wealth Partners.
Collectively, they oversaw nearly $2 billion in client assets. Velasco has 37 years of industry experience, von Borsig has 17 years of experience, Cardenas has nine years of experience, and Garcia has over a decade of experience in wealth management and tax services.
“On behalf of the entire Florida Leadership team, I am thrilled to welcome Ary, Michael, and David to UBS,” Brad Rosenberg, Greater Miami Market Director at UBS Private Wealth Management, said in a press release. “Jose brings a deep understanding of clients’ complex needs and a strong commitment to helping them achieve their financial goals,” Rosenberg said in a separate press release.
Chris Latham, Managing Editor at Wealth Solutions Report, can be reached at clatham@wealthsolutionsreport.com.
