This edition of the Deals & Recruiting Roundup covers Mid Penn acquiring Cumberland, Perigon buying Gitterman Wealth Management and Gitterman Asset Management, Corient purchasing Bristlecone, Ares staking EP Wealth, Dynasty raising $125 million credit facility, Sanctuary recruiting Cedar Cove, AmeriFlex landing Capital Insight, LPL onboarding Lighthouse, Bill Harris launching Evergreen, Wealth.com partnering with Osaic, RFG appointing Ed Swenson as President and U.S. Bancorp naming Jodi Rolland President of Affluent Wealth Management.
Larry's Take
The M&A section of this roundup usually covers raising capital through equity sales, but this week we cover a deal that isn’t a merger or acquisition, but is a capital raise nonetheless: Dynasty secured a $125 million credit line through a consortium of banks, including household names like Goldman.
Some advantages of raising capital through debt are obvious, especially that the current owners maintain their equity without dilution. With interest rates poised to drop, debt may become more attractive as part of firms’ capital structures. However, the equity holders’ control may be impinged by restrictive covenants.
If you’re looking for an exit, then go the equity route, but for advisors on a growth trajectory who are looking to maintain their equity structure and in need of capital to maintain that growth, debt may be the right solution. Talk with your accountants and lawyers first to make sure debt is right for your firm and to tailor the terms you need.
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@ascentix.com.
Mergers & Acquisitions
Mid Penn Bancorp To Acquire $3.3 Billion Florida RIA
Mid Penn Bank parent company Mid Penn Bancorp agrees to buy Sarasota, Florida-based RIA Cumberland Advisors. Cumberland recorded year-to-date annualized revenue of $9 million as of the second quarter and is expected to bring about $3.3 billion new assets under management (AUM) to the combined firm.
The transaction is expected to close in the fourth quarter this year. The Cumberland leadership and team members will join Mid Penn. Mid Penn currently operates 59 retail locations throughout Pennsylvania and central and southern New Jersey, and has total assets of about $6 billion.
“We are excited to bring a highly respected team of professionals under the Mid Penn umbrella,” said Rory Ritrievi, President, CEO and Chair of Mid Penn Bancorp. “This partnership strengthens our ability to serve customers with deep expertise, shared values, and commitment to excellence. Together, we are well positioned to accelerate growth of the combined business.”
Private Equity Firm Ares To Buy Minority Stake In EP Wealth
Ares Management Private Equity in Los Angeles plans to acquire a minority stake in EP Wealth. Ares, which joins current investor Berkshire Partners, will provide EP Wealth capital to recruit talent, expand products and services, develop technology and pursue more mergers and acquisitions.
EP Wealth’s co-founders Derek Holman and Brian Parker will maintain “meaningful ownership” in the RIA and continue as active advisors and leaders. Ares oversaw $572 billion in AUM as of June. EP Wealth has closed eight M&A transactions this year, with AUM of $40 billion as of Aug. 31.
“EP Wealth has established itself as a leader in the RIA industry, with a demonstrated track record driven by its advisors’ unwavering commitment to client service,” said Jordan Smith, Partner in the Ares Private Equity Group. “We believe EP Wealth’s entrepreneurial culture and growth mindset, supported by the combined resources and experience of Ares and Berkshire Partners, will enable the Company to build on its leadership position and compound long-term growth.”
Dynasty Closes $125 Million Credit Facility
Dynasty Financial Partners obtains a $125 million credit line from a group of banks, including UMB Bank, Flagstar Bank, JPMorgan Chase and Goldman Sachs. The deal marks Flagstar’s debut as an investor in Dynasty, a third commitment from UMB and a second from JPMorgan Chase and Goldman Sachs.
Dynasty will use the credit facility – a combination of a revolving and a delayed draw term loan – to accelerate its development of proprietary services and the growth of its network. The company, based in St. Petersburg, Florida, has 55 network partner firms representing over 500 advisors and more than $120 billion in platform assets.
“This facility signifies the market’s continued belief in our disciplined approach to innovation and our commitment to equipping independent firms with the ability to achieve outsized growth and build client trust,” said Dynasty CFO Justin Weinkle. “The dry powder that these top-tier institutions have provided will enable us to continue developing our competitive strengths and comprehensive offering for the better of the wealth management industry.”
Perigon Wealth Management Buys $1.3 Billion Gitterman Businesses
Perigon Wealth Management acquires Gitterman Wealth Management and Gitterman Asset Management in Edison, New Jersey, which collectively manages $1.3 billion in total assets. The deal boosts Perigon’s total AUM to $10.6 billion.
Gitterman’s team consists of six wealth managers who specialize in serving higher education professionals via the New Jersey Alternate Benefit Program and the Public Employee Retirement System. Partners Jeffrey Gitterman and Eli Rauch will become Managing Directors at Perigon.
“Perigon’s growth strategy is rooted in partnering with firms and individuals who align with our culture and add tangible value for clients,” said CEO Arthur Ambarik. “We are expanding thoughtfully, with the conviction that growth and principles go hand in hand. Jeff and Eli share this perspective, and I look forward to working with them to strengthen both our profession and the communities we serve.”
Corient Purchases Bristlecone Advisors, Expands Pacific Northwest Operations
Miami-based Corient acquires Bristlecone Advisors, an RIA in Bellevue, Washington, that manages $2 billion in AUM. Founded in 1999, Bristlecone is a multi-family office that provides financial planning, tax and estate services, philanthropy, real asset and risk management, and specialized projects.
Corient, which launched in 2020, has more than 260 partners and over 1,300 employees managing approximately $216 billion in assets as of July 31 on behalf of ultra-high and high net worth clients.
“Bristlecone’s exceptional team, strong growth and established presence in the Pacific Northwest make them an excellent fit for Corient,” said Kurt MacAlpine, Partner and CEO of Corient. “Their focus on ultra-high and high-net-worth families and commitment to fiduciary excellence align perfectly with our efforts to reset the standard for what a modern multi-family office can deliver.”
Advisor Transactions
Sanctuary Wealth Recruits Cedar Cove From Thrivent
Sanctuary Wealth announces Cedar Cove Wealth Partners joined its network. The independent firm, based in Bloomington, Minnesota, was most recently affiliated with Thrivent Advisor Network.
Founding Partners and Wealth Advisors Jennifer Cords, Ben Johnson and Chris Sipe lead the 14-person team. Keith Sapp is a Partner and Chief Investment Officer. Sanctuary’s network includes more than 125 partner firms in 32 states, with over $55 billion in assets on and in transition to its platform.
“We’ve spent the last five years getting to know the independent wealth management space,” Cords said. “And while we’ve learned a lot, grown our team and added clients during this time, we have a vision of where we want to take our business over the next five to 10 years.”
AmeriFlex Welcomes $354 Million Team From Osaic
The AmeriFlex Group, a Las Vegas-based advisor-owned hybrid RIA affiliated with Cambridge Investment Research, recruited Jacob Reid and his four-person Capital Insight Financial Group team from Osaic. Livermore, California-based Capital Insight manages approximately $354 million in client assets.
This summer, AmeriFlex transitioned to Cambridge as its broker-dealer partner. Shortly after that, the firm recruited Summit Financial & Insurance Group, which represented $280 million in total client assets, also from Osaic.
“As I considered the next phase of my career, I knew that I needed to partner with someone who respected my experience and abilities to shape the future of my practice,” Reid said. “Working with Tom and the entire AmeriFlex Group leadership team made it clear that they would provide the right level of support and flexibility for me and my team.”
LPL Financial Lands $1.1 Billion Lighthouse Private Wealth
LPL Financial recruits Lighthouse Private Wealth, formed by advisors formerly with RBC, to its broker-dealer and RIA platforms. The RIA managed $1.1 billion in advisory, brokerage and retirement plan assets as of Dec. 31.
Lighthouse consists of Advisors DJ Totland and Christopher Meyer, with support from Rob Tendler and Harbor Lights Financial Group – an existing firm supporting LPL-affiliated advisors. Located in Red Bank, New Jersey, Lighthouse serves high net worth individuals, small business owners and families.
“Chris and I are a very high-touch and service-oriented pair,” Totland said. “We act as fiduciaries to our clients, and we are proud that we have achieved the CFP designation. We collaborate on all client meetings and work in tandem. This gives us a 10,000-foot view of things that are going on in our business. Having two minds approach issues is our differentiator as we can complement each other.”
Fintech Veteran Launches RIA Focused On Tax Optimization And AI-Driven Advice
Ex-PayPal CEO and Co-Founder Bill Harris launches Evergreen Wealth, a digital RIA with offices in Dallas, Miami and Raleigh, North Carolina. The company will provide tax-aware investment management and AI-powered financial advice to affluent and high net worth clients looking to build long-term wealth.
Evergreen said it uses various tax strategies, including direct indexing, to offset, reduce, defer or eliminate taxes. Its advisors use research provided by Evergreen Intelligence, its proprietary AI advice engine; its financial knowledge base; and agentic AI tools to advise clients.
“Younger, affluent investors want more than traditional products and quarterly meetings,” Harris said. “They demand sophisticated tax and investment services, available on their schedule. We built Evergreen Wealth for this generation of investors.”
Strategic Partnerships
Wealth.com Named Estate Planning Partner By Osaic
Wealth.com partners with Osaic to provide estate planning tools to Osaic’s 11,000 affiliated financial professionals. Using Wealth.com, Osaic clients can complete estate documents online and advisors can track their progress, all within existing workflows. Osaic’s National Planning Institute will also exclusively licensing Wealth.com’s Family Office Suite, designed for complex needs and ultra-high net worth clients.
Osaic said the partnership reflects the growing importance of estate planning for advisors to developing clients’ trust, delivering holistic advice and achieving growth.
“Estate planning is one of the most important, yet often overlooked, elements of a client’s financial life,” said Joe Gaeckle, Senior Vice President of High Net Worth and Financial Planning Solutions at Osaic. ”This partnership emphasizes Osaic’s commitment to providing integrated, best-in-class solutions that help advisors serve clients more effectively and grow their practices.”
Promotions & People Moves
RFG Advisory Names Ed Swenson President
RFG Advisory appoints Ed Swenson President, where he is tasked to help drive the company’s growth and build out its platform for independent advisors. In addition, Swenson, along with CEO Shannon Spotswood and CIO Rick Wedell, will serve as Managing Partners for the company.
Swenson has served on RFG’s board of directors for the past two years. He led RIA Solutions at Osaic until September, and prior to that co-founded Dynasty Financial Partners. His appointment will free up Wendell to concentrate on expanding RFG’s investment platform, which the company considers central to its value proposition.
“After more than two decades in this industry, it’s clear to me that the RIA model is where advisors are able to do their best work for clients,” Swenson said. “What drew me to RFG is not only its cutting-edge technology and fully integrated growth services, but also its advisor-centric culture. RFG embodies the ethos of where Advisor vision meets proven execution.”
Big Bank News
U.S. Bancorp Names Jodi Rolland To Top Leadership Positions
U.S. Bancorp appoints Jodi Rolland as President of Affluent Wealth Management. The Minneapolis-based bank also said Rolland will eventually assume the role of CEO for U.S. Bancorp Investments (USBI) and U.S. Bancorp Advisors (USBA).
She was most recently at JPMorgan Chase, where she served as Managing Director, Divisional Director for Consumer Banking, in charge of retail banking for its Greater West region. Before that, Rolland worked at Bank of America Merrill Lynch for over two decades.
“I’m very excited to join this iconic company at this critical juncture in its 163-year history,” Rolland said. “We have a terrific team that’s committed to helping clients realize their goals. I look forward to all we can achieve together.”
Thomas Lee, Senior Editor and Staff Writer at Wealth Solutions Report, can be reached at thomas.lee@wealthsolutionsreport.com.
