This edition of the Deals & Recruiting Roundup covers CW Advisors acquiring Cubic Asset Management and Mercadien Asset Management, Focus Financial Partners agreeing for Gratus Capital to merge into The Colony Group, World Investment Advisors acquiring Boston Harbor Wealth Advisors, Modern Wealth Management acquiring C&J Wealth Advisors, Serenus Wealth Advisors launching, Avantax recruiting S&P Financial Services, Arkadios onboarding Gulf Coast Wealth, Prospera recruiting Up the Graph Financial Group, Integrated Partners teaming with Wealth.com on estate planning, RFG Advisory promoting Shannon Spotswood to CEO, Lido Advisors appointing Henry Hagenbuch as Head of M&A and RBC recruiting The Callot Wealth Management Group.
Larry’s Take
Although there is no single strategy for long-term success that all firms should abide, a healthy three-pronged approach in today’s wealth management landscape is acquiring firms, recruiting independent practices and maintaining strong organic growth of the parent company’s client base. And the economics of the industry all but require organic growth.
A company must be financially strong in order to attract and retain top talent, purchase relevant technology and conduct savvy marketing. Acquisition targets with a fast-growing client base will contribute positively to the company’s bottom line faster than targets with a slow growing or stalled client base. And a company can either develop a reputation for recruiting growth oriented advisors, or try and figure out how to position the absence of such advisors as a benefit.
As for acquisitions versus recruitments, while acquisitions can give the parent company greater control and profit potential, it also can call for greater upfront expenditures and may not always attract the most entrepreneurial (i.e., driven) advisors. After all, one great advantage of selectively recruiting independent advisors is a better ability to know who exactly you’re bringing on, and what they will need from your company in order to maximize the growth of their practice.
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. Audax-Backed CW Advisors Acquires Cubic And Mercadien
Boston-based CW Advisors (CWA), an RIA with over $8.8 billion in assets under management (AUM), acquired Boston-based Cubic Asset Management, which has over $700 million in AUM, and Hamilton, New Jersey-based Mercadien Asset Management, which has $243 million in AUM as of its March SEC ADV filing. They are CWA’s second and third acquisitions, respectively, since receiving an investment from Audax Private Equity in June 2023.
CWA – which has nine offices and 92 employees across the country – plans to accelerate its acquisition momentum, as well as enhance its investment and service offerings for high net worth and ultra-high net worth clients. Audax has approximately $19 billion in AUM and has invested in more than 170 platforms and 1,300 add-on acquisitions since its founding in 1999.
“It has been an exciting summer already welcoming two firms as we continue to complement CWA’s strong organic growth with strategic acquisitions that enhance the firm’s investment and service offerings,” said Scott Dell’Orfano, Chief Strategic Officer at CWA.
2. Focus Agrees For $3.8 Billion Gratus Capital To Merge Into The Colony Group
Focus Financial Partners agreed for Atlanta-based Gratus Capital to merge into fellow Focus firm The Colony Group. The deal is expected to close in the third quarter. As of May 31, Gratus had $3.8 billion in AUM. It joined Focus as a partner firm in 2014. Colony, which recently combined with Buckingham Strategic Wealth, has 92 locations across 30 states and Washington, D.C.
Colony had approximately $21.5 billion in AUM as of its July SEC ADV filing, and Buckingham has approximately $28.8 billion in AUM as of its May SEC ADV filing. Earlier this year, Focus also agreed for Nashville, Tennessee-based InterOcean Capital Group, which has $5.8 billion in AUM, and for Wellesley, Massachusetts-based GW & Wade, which has $10.4 billion in AUM, to merge into The Colony Group.
“Colony has grown considerably over the last year, and the combination with Gratus will add to this momentum,” said Michael Nathanson, CEO of Focus. “Gratus’ commitment to creating successful client and team member experiences aligns with what Colony has built.”
3. World Investment Advisors Acquires $3.5 Billion Boston Harbor Wealth Advisors
World Investment Advisors, the wealth management arm of World Insurance Associates, acquired Boston Harbor Wealth Advisors, an independent financial services firm in Westborough, Massachusetts, with over $3.5 billion in AUM. Boston Harbor is its third acquisition in the past nine months and its second with more than $3 billion in AUM.
Boston Harbor specializes in financial planning and goal-oriented investment management for individuals, families and businesses through 76 team members located in 15 offices across the Northeast and Ohio. World Investment Advisors recently rebranded from Pensionmark. The firm now has $11.5 billion in AUM.
“In addition to an incredible group of financial advisors, we are fortunate to be adding premier leadership and team members that will prove invaluable for our advisors, clients and ongoing acquisition growth strategy,” said Troy Hammond, CEO of World Investment Advisors. “This partnership further solidifies World as the destination of choice for growth-focused advisory firms.”
4. Modern Wealth Surpasses $4 Billion In AUM With Latest Acquisition
Modern Wealth Management acquired Knoxville, Tennessee-based C&J Wealth Advisors, a wealth management firm providing financial planning, asset and risk management, and retirement planning services that manages more than $260 million in assets and serves over 300 clients in the Knoxville and Oak Ridge areas.
The transaction, which has allowed Modern Wealth to surpass $4 billion in AUM, is its ninth acquisition to be finalized since it was started 14 months ago. Modern Wealth also augmented its Partnership Development team with the addition of Jacqueline Ferdowsi as Vice President. Ferdowsi will be in charge of establishing and executing the RIA’s acquisition, partnership and corporate development strategy.
“This acquisition marks a significant milestone in our national expansion, enabling us to seize opportunities in the rapidly growing Knoxville market,” said Jason Gordo, Co-Founder and President of Modern Wealth. “Aligned with our commitment to delivering comprehensive financial advice, the C&J Wealth Advisors team brings a highly capable group of advisors to help execute our mission.”
Advisor Transactions
5. Serenus Wealth Advisors Launches In Santa Monica With $1.2 Billion
Kara Boccella launched Santa Monica, California-based Serenus Wealth Advisors, overseeing $1.2 billion in assets, along with Devon Galindo, a Partner at the new firm. Rebecca Tipp and Laura Lemoine join the firm as Directors, and Lonny Elfenbein joins as Chief Compliance Officer.
Serenus, a partner-owned RIA offering fee-only fiduciary services, works with legal professionals, executives, entrepreneurs, and high net worth individuals and families. Boccella served as a Partner at Certuity since 2014 and has more than 15 years of experience serving high net worth clients. Galindo was Senior Director at Certuity, where she also worked since 2014.
“For over 30 years, it has been my privilege and honor to serve clients with a hyper focus on ensuring their financial peace of mind throughout their lifetimes,” Boccella said. “This commitment to clients is the driving force behind launching Serenus Wealth Advisors, where our top priority is serving as their trusted partner, day in and day out.”
6. Avantax Recruits $150 Million S&P Financial Services On Long Island
Avantax, a tax-focused financial planning and wealth management unit of Cetera Holdings, brought on Hauppauge, New York-based S&P Financial Services. The team, led by advisors John Surace and Kelly Powers, transferred from Osaic. It had approximately $150 million in assets under administration as of June.
Before launching S&P Financial Services, Surace was Senior Vice President, Northeast Region at AXA Advisors, where he worked from 2012 until 2020, according to his LinkedIn profile. He has 24 years of experience, according to BrokerCheck. Powers has 30 years of industry experience, including money management, as well as sourcing, hiring and training advisors. Avantax and its subsidiaries had $92.8 billion in assets under administration as of Dec. 31.
“When we started talking with Avantax, things sounded so good that I was actually skeptical going in, but everything they told us came to fruition, and the entire company is very competent, from the top down,” Surace said. “On previous transitions we were busy filling out paperwork, but at Avantax they picked up the ball and ran with everything, allowing us to focus on our clients,” Powers said.
7. Arkadios Onboards $850 Million Gulf Coast Wealth In New Orleans
Atlanta-based Arkadios Capital, a hybrid broker-dealer and RIA, onboarded New Orleans-based Gulf Coast Wealth Management, a division of Gulf Coast Bank that has $850 million in assets under advisement and was affiliated with LPL Financial for over two decades.
Jason King serves as Wealth Management Director of Gulf Coast, which provides investment management, wealth planning and risk management solutions. The team engaged in a two-year selection process for a new broker-dealer. Arkadios supports more than 220 advisors and has over $11 billion in affiliated assets.
“Gulf Coast Wealth is a prime example of the challenges facing the financial industry. It is a growing independent, entrepreneurial firm hindered by large, one-size-fits-all broker-dealers,” said David Millican, Founder and CEO of Arkadios Capital. “Arkadios Capital continues to attract successful firms with our flexible framework, tailored solutions and personalized service.”
8. Prospera Recruits $115 Million Up The Graph Financial Group In California
Prospera Financial Services recruited Irvine, California-based Up the Graph Financial Group, which is led by Garrick Updegraph and has approximately $115 million in AUM. His team provides financial planning and wealth management for multi-generational clients and retirement planning for institutions. Updegraph has over two decades of industry experience.
Earlier this year, Dallas-based Prospera recruited Redlands, California-based Painter, Smith & Amberg, a firm with $650 million in AUM. Prospera also launched the Prospera Generational Wealth Platform, a support team for family office services that helps advisors find opportunities and design sophisticated strategies for ultra-high net worth clients.
“We have intentionally designed our firm for advisors like Garrick who do not want to choose between growing their practice and delivering the highest quality, personalized service to their clients,” said Tarah Williams, President and COO of Prospera. “Our strategic investments in best-in-class technology, coupled with a tireless dedication to hands-on service, have cultivated a value proposition designed to help advisors, like Garrick, grow their practice their way.”
Strategic Partnerships
9. Integrated Partners Gives Its Advisors Access To Wealth.com Estate Planning Tools
Integrated Partners and estate planning platform Wealth.com partnered to give Integrated advisors access to next-generation estate planning tools and allow for a more holistic view of clients’ financial lives. An estimated $84.4 trillion in assets is projected to transfer to the next generation by 2045, according to a Cerulli report that Integrated cited.
The wealth management firm recently started expanding advisor access to specialized services through strategic partnerships, new hires and technology implementation. Founded in 1996, Integrated Partners has over 212 advisors, more than 190 CPAs and 116 regional offices.
“Clients are increasingly looking for services that offer additional value,” said Andree Mohr, President of Integrated Partners. “This strategic partnership is set to enhance our advisors’ ability to satisfy these evolving expectations with access to estate planning, backed by a network of estate planning attorneys.”
Promotions & People Moves
10. RFG Advisory Promotes Shannon Spotswood To CEO
RFG Advisory promoted Shannon Spotswood to CEO. She previously served as President. Spotswood has over 25 years of financial services experience. She held leadership roles in investment banking and hedge fund management before joining RFG Advisory nine years ago, where she has overseen the development of the firm’s integrated platform for independent advisors.
In June, RFG surpassed $5 billion in AUM, and as of that time had onboarded five new advisory teams in 2024. The firm also recently recruited Abby Salameh as Chief Growth Officer, Brendan Frazier as Chief Behavioral Officer and Ken Kim as Chief Financial Officer. In addition, RFG brought on Bill Christie as National Sales Director and Ashten Legg as Director of Marketing.
“I am humbled and excited to step into my role as the CEO of RFG Advisory,” Spotswood posted on LinkedIn. “We are JUST GETTING STARTED and I’m laser focused on ensuring we continue to build enterprise value for our Advisors, helping them to grow their business without compromise.”
11. Lido Advisors Hires Henry Hagenbuch As M&A Head From Robertson Stephens
Los Angeles-based Lido Advisors hired Henry Hagenbuch as Senior Managing Director, Head of Mergers and Acquisitions. He will focus on sourcing, evaluating, executing and integrating strategic M&A as the firm seeks to expand its national footprint. As of June 30, Lido had over $20 billion in AUM.
Hagenbuch has over a decade of financial services experience and has more than 15 years of business development experience. Most recently, he served as Senior Vice President of M&A at Robertson Stephens. At the start of the year, Lido announced an investment from Constellation Wealth Capital. In June, Lido acquired New Albany, Ohio-based Shore Morgan Young Wealth Strategies.
“Lido Advisors has an outstanding reputation in the wealth management industry, and I am excited and grateful for the opportunity to join an organization that has expanded in such a rapid, yet mindful way,” Hagenbuch said. “This industry as a whole is growing, and I believe there are many advisors and clients around the country who can benefit from Lido’s holistic, family office approach to wealth management.”
Wirehouse / Big Bank Activity
12. RBC Recruits $640 Million The Callot Wealth Management Group From Merrill Lynch
RBC Wealth Management recruited David Callot and his Paramus, New Jersey-based four-person team from Merrill Lynch, where he worked for 32 years. The Callot Wealth Management Group oversees $640 million in assets.
According to Diamond Consultants, the recruitment firm that aided his transition, Callot changed firms due to pressure to cross-sell bank products, excessive red tape, compensation plan updates and an aggressive implementation of the bank’s agenda.
“We feel that RBC Wealth Management is the right place for our team because of its global capabilities and supportive, yet entrepreneurial, culture,” David Callot, Managing Director and Financial Advisor at Callot Wealth Management Group, was quoted as saying by Diamond Consultants.
Chris Latham, Managing Editor at Wealth Solutions Report, can be reached at clatham@wealthsolutionsreport.com.
