This edition of the Deals & Recruiting Roundup covers Corient acquiring Emerald Multi-Family Office and Byron Financial, Focus agreeing for HoyleCohen to join The Colony Group, Savvy Wealth completing its $26.5 million funding round, Houlihan Lokey agreeing to acquire Waller Helms Advisors, LPL recruiting three practices with over $1.4 billion in total assets, California Coast Credit Union partnering with Cetera Financial Institutions, Journey Strategic Wealth recruiting MDL Wealth Management, Carson Group adding Shane Hall Financial, Private Advisor Group partnering with Succession Link, Chalice offering group health insurance, Nepsis recruiting Troy Williams from U.S. Bancorp and RBC recruiting Marcel TenBerge from Merrill.
Larry’s Take
Houlihan Lokey’s agreement to acquire Waller Helms Advisors – an investment bank acquiring an M&A and capital raising advisory firm – may represent an evolving front in M&A. The deal enhances Houlihan Lokey’s insurance and wealth management deal-making capabilities, and further demonstrates the overall appeal of the financial services sector.
The acquiring investment bank also is active across sectors ranging from consumer to healthcare to industrials. So its attention to wealth management in particular reinforces recent findings from DeVoe & Company, ECHELON Partners and Fidelity that 2024 deal flow in our sector is on track to rebound from last year’s dip.
Of course, RIAs and broker-dealers will be the ones to determine whether consolidation in the IB space leads to better quality of M&A advice and execution. Just as a $1.5 trillion wirehouse can guarantee no better wealth management service than a $150 million RIA, in deal-making, experience and expertise that are relevant to the client often matter more than size alone.
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 Acquires 2 Firms, Appoints Citi Veteran As CFO
Corient acquired Weston, Florida-based Emerald Multi-Family Office and Charlotte, North Carolina-based Byron Financial, which provide comprehensive wealth management services to ultra-high net worth clients and have combined assets of approximately $5.9 billion. Corient has $171 billion in client assets and more than 240 partners, according to its website.
The firm also appointed Francisco Tobias as Partner and Chief Financial Officer. He has 27 years of financial experience. Most recently, he was CFO for Europe, Middle East and Africa at Citigroup. Before that, Tobias was CFO of Citibanamex and Latin America Region, Citi’s Mexican subsidiary and Mexico’s second-largest bank.
“Corient, our U.S. subsidiary, is demonstrating significant growth in assets and profitability, having generated double-digit gains in adjusted EBITDA relative to both the previous quarter and the second quarter of 2023,” said Kurt MacAlpine, CEO of Toronto-based CI Financial. “In addition to fostering organic growth at Corient, we continued our highly selective approach to M&A, seeking exceptional wealth management firms focused on ultra-high net worth individuals and families.”
2. Focus Agrees For $3.6 Billion HoyleCohen To Join The Colony Group
Focus Financial Partners agreed for San Diego-based HoyleCohen to join The Colony Group. This transaction is expected to close in the third quarter and add approximately $3.6 billion in assets under management (AUM). HoyleCohen, which has four offices across California and Arizona, joined Focus as a partner firm in 2006.
Colony has 92 locations across 30 states, plus Washington, D.C. This year, Focus agreed for Atlanta-based Gratus Capital; Nashville, Tennessee-based InterOcean Capital Group; and Wellesley, Massachusetts-based GW & Wade to merge into The Colony Group. Focus has 90 partner firms and a presence in seven countries, according to its website.
“HoyleCohen and Colony are deeply aligned in their core values and how they serve clients,” said Michael Nathanson, CEO of Focus. “We’re confident that, together, they will take full advantage of the solutions each has built to meet the complex and unique needs of their clients and teams.”
3. Savvy Wealth Completes $26.5 Million Series A Funding Round
Savvy Wealth received an additional $15.5 million in funding, to complete its $26.5 million Series A round. Canvas Ventures led the latest round. Existing and new investors Thrive Capital, Brewer Lane Ventures, Index Ventures, The House Fund and Alumni Ventures also participated. Savvy has received over $33 million in venture capital since inception in 2021.
The firm plans to use its capital injection to accelerate the development of its artificial intelligence (AI)-powered technology platform, expand its product and engineering teams, and recruit entrepreneurial advisors to its national affiliate RIA, Savvy Advisors. Savvy has 30 advisors who manage over $700 million in client assets.
“As advisors increasingly pursue independence, we see a strong opportunity to partner with those who want to provide their clients with a modern, tech-driven experience,” said Ritik Malhotra, Founder and CEO of Savvy Wealth. “We empower advisors with purpose-built technology to transform their client relationships and scale their practices exponentially.”
4. Houlihan Lokey To Acquire Insurance And Wealth-Focused Waller Helms
Global investment bank Houlihan Lokey agreed to acquire Chicago-based Waller Helms Advisors, whose own M&A and capital raising advisory services focus largely on the insurance and wealth management sectors. The transaction is expected to be completed by year-end, following regulatory approvals. Waller Helms’ nearly 50 financial professionals will join Houlihan Lokey’s Financial Services Group.
Since inception in 2014, Waller Helms has advised on more than 230 transactions with over $40 billion in total value. Recent transactions include the sale of Century Equity Partners’ portfolio company, DOXA Insurance, to Goldman Sachs Asset Management; The Mather Group’s recapitalization by The Vistria Group; and BenefitMall’s sale to Truist Financial on behalf of the Carlyle Group.
“We have known the Waller Helms team for many years, and their long track record of success in financial services advisory is truly impressive,” said Jay Novak, Global Co-Head of Corporate Finance. “We look forward to introducing our new partners to our global client base as we continue to grow and enhance our service offering in Corporate Finance.”
Advisor Transactions
5. LPL Recruits Three Practices With Over $1.4 Billion In Total Assets
LPL Financial announced three advisory practice recruitments representing over $1.4 billion in assets, in the same week. Houston-based Alberto Francis launched Rockview Private Wealth through the high net worth-focused employee affiliation model LPL Private Wealth Management. He joined from Bank of America Private Bank, where he oversaw $725 million in client assets.
Manasquan, New Jersey-based Harbor Lights Financial Group, which served $535 million at Wells Fargo FiNet, consists of 11 team members. It plans to access LPL’s Liquidity & Capital service for de-risking and prepare practices for next-generation succession planning. North Haven, Connecticut-based SoundWay Financial, which served $180 million at Cetera, consists of seven team members and aligned with New Port Richey, Florida-based Balmville Wealth Group.
“Our entire focus is to support advisors and make it easier for them to provide personalized financial guidance and differentiated service experiences to their clients,” said Scott Posner, LPL Executive Vice President, Business Development. “We do this by providing unprecedented choice and flexibility in how firms build their business, and by investing in integrated capabilities and robust business solutions designed to help advisors thrive.”
6. Cetera To Serve California Coast Credit Union, Acquires Watters Financial Services
California Coast Credit Union selected Cetera Financial Institutions, part of Cetera Investment Services, to help manage and deliver its investment program. Founded in 1929, the credit union serves approximately 200,000 members and has $3.4 billion in assets.
Cetera Financial Group’s employee-based RIA, The Retirement Planning Group (TRPG), also acquired Paramus, New Jersey-based Watters Financial Services, which had $180 million in AUM as of March 31 and includes Tim Watters and his son Colin Watters. TRPG has over $2 billion in AUM across more than 2,000 clients.
“Cetera has a proven track record of helping financial institutions improve their investment programs in ways that ultimately benefit their members,” said LeAnn Rummel, President and CEO of Cetera Investment Services. “We look forward to providing innovative solutions and services to Cal Coast’s members and a higher level of support to its financial professionals.”
7. Journey Strategic Wealth Recruits MDL Wealth Management In Florida
Journey Strategic Wealth, which has $3.7 billion in AUM, recruited the Tampa, Florida-based MDL Wealth Management team of Founder Michael LaBarbera, advisor Ted Albrecht, Investment Operations Manager Carol Liddy and Client Services Manager Sheila Meneses. The addition is the eighth team to join Journey since it launched in 2021.
Earlier this year, Journey opened a Minneapolis office. It also has locations in the San Francisco Bay Area; Richmond, Virginia; Northern New Jersey; and New York City. Journey provides middle-and-back office infrastructure, including dedicated investment and operations teams. Journey also recently partnered with RISR, a business owner engagement platform for advisors.
<caption>Penny Phillips, Co-Founder and President, Journey Strategic Wealth</caption>
“Our advisors grow in a scalable way, without having to immediately add expenses and people,” said Penny Phillips, Co-Founder and President at Journey Strategic Wealth. “We provide leverage so they can focus on what they do best and love most. The proof is in the pudding. When you let advisors be advisors and don’t handcuff them, they grow.”
8. Carson Group Brings On $169 Million Shane Hall Financial In Texas
Omaha, Nebraska-based Carson Group brought on Amarillo, Texas-based Shane Hall Financial to its advisory network. The firm manages $169 million in assets and provides retirement income planning and comprehensive financial planning.
Led by Founder Shane Hall, the independent team includes Financial Professional James Hughes and Business Manager Kim Hall. Carson Group will provide access to tax, trust and estate planning, as well as close collaboration with Carson’s Investments Team. Carson Group manages $36 billion in assets and serves more than 50,000 families across its advisory network of over 150 partner offices.
“We chose to partner with Carson Group because of their forward-thinking approach to growth and advanced technology infrastructure,” Hall said. “This collaboration will enable us to offer a broader range of services to our clients and better leverage our time, allowing us to focus on delivering personalized financial advice.”
Strategic Partnerships
9. Private Advisor Group Partners With Succession Link
Morristown, New Jersey-based Private Advisor Group partnered with Succession Link to provide advisors with a path to succession planning, business continuity, M&A and hiring. The firm’s advisors can use the marketplace to source, post and identify opportunities. Private Advisor Group had $31.5 billion in AUM as of its June SEC ADV filing.
Succession Link is a networking and communication platform that connects financial professionals seeking to buy, sell or merge their businesses. It also provides a career marketplace for support roles and executive positions; as well as an advisor recruiting platform for broker-dealers, RIAs and institutions.
“Navigating unforeseen events and ensuring continuity is a challenging but essential part of our work with advisors and their families,” said Donald Stahl, Head of Sales and Solutions at Private Advisor Group. “Internally, the seamless leadership transition of Frank Smith succeeding R.J. Moore as CEO underscores our commitment to effective planning. Advocacy for succession planning is integral to our ethos, highlighting the significance of this new partnership.”
10. Chalice Launches Group Health Insurance Program For Firms Of Any Size
Chalice Connect – a provider of white label affinity platforms to RIAs, broker-dealers and associations – launched Chalice MD, a group health insurance program available to firms regardless of business size, including sole proprietors.
Firms can access Chalice MD through enterprise license agreements as a stand-alone offering, as a private-label for enterprises or directly through the Chalice Network. Chalice provides members with access to tools and services that may come at potential pricing discounts.
“Our Group Health Insurance program has been our top product offering within Chalice, embraced by thousands of advisors nationwide with average savings of 35% to 40%,” said Keith Gregg, Founder and CEO of Chalice Network and Chalice Connect. “In response to increasing demand, we have launched Chalice MD as a stand-alone enterprise offering, providing independent broker-dealers, RIAs, associations and other small businesses with enhanced benefits that alleviate their top pain point and cost burden.”
Promotions & People Moves
11. Nepsis Appoints Troy Williams As SVP Of Strategy And Corporate Development
Minneapolis-based Nepsis appointed Troy Williams to the newly created role of Senior Vice President of Strategy and Corporate Development. He will lead the firm’s M&A efforts, screen potential opportunities and manage the integration process for firms that join Nepsis, as well as identify and establish partnerships with financial services firms that can support overall growth.
Williams has more than 15 years of experience. Most recently, he was SVP of Enterprise Strategy at U.S. Bancorp. Before that, Williams held senior positions in Strategy Business Development at Ameriprise Financial. Earlier in his career, he was an Associate at McKinsey & Company. Earlier this year, Nepsis expanded its tax services team. In November, it acquired Sevenich, Butler, Gerlach & Brazil.
“It’s energizing to join Nepsis at such a pivotal time in its growth. I look forward to helping navigate the complexities and opportunities often associated with expansion,” Williams said. “The company’s dedication to continually evolving its service and support for advisors aligns perfectly with my values and my passion for this industry.”
Wirehouse / Big Bank Activity
12. RBC Appoints Marcel TenBerge As Southern California Complex Director
RBC Wealth Management appointed Marcel TenBerge as Southern California Complex Director. He will lead 11 branch offices and 215 employees. TenBerge has over 24 years of wealth management experience. Most recently, he served as the Pasadena Central Valley Market Executive at Merrill Lynch. Before that, TenBerge was an advisor with Morgan Stanley.
In June, RBC Wealth Management recruited the Brown-Brinkley Group, which oversees $915 million in client assets from Tysons, Virginia. In the U.S., RBC Wealth Management has $583 billion in total client assets, and more than 2,100 advisors across 190 locations in 42 states. It is a subsidiary of Royal Bank of Canada.
“I’m thrilled to join RBC Wealth Management for the opportunity to truly support and partner with financial advisors in the growth of their practices,” TenBerge said. “I’m excited to lead the Southern California Complex knowing that I am fully supported in driving growth and delivering exceptional value to clients.”
Chris Latham, Managing Editor at Wealth Solutions Report, can be reached at clatham@wealthsolutionsreport.com.
