In this edition of the Deals & Recruiting Roundup, we talk with our Recruiter of the Month: Kyle Miller, Managing Director of M&A at EP Wealth Advisors.
In addition, we cover Rise Growth investing in Grimes & Company, DeVoe’s research showing high expectations for RIA M&A, Sanctuary staking Alluvial Private Wealth, Creative Planning buying Maxwell Wealth Strategies, RFG Advisory recruiting Strodtman Wealth, LPL adding three former Raymond James advisors, the launch of XXI Wealth in partnership with Dynasty, Alera Group expanding its wealth management and retirement platforms, Private Advisor Group’s new Director of Advisor Growth, Cresset’s new Chief People Officer, OneSeven’s promoted CEO and VestGen’s hire of six execs to complete its leadership team.
Larry’s Take
Minority stakes have been an important fundraising option for wealth managers and RIAs for quite a few years, and the M&A method gains more prevalence with each passing year. We’ve covered minority equity positions many times, including last July’s deep dive into the subject. This week’s roundup includes Sanctuary’s first stake since instituting its new capital program and Rise Growth’s second since founding.*
Minority stakes capital may hail from direct capital sources, home offices or other industry players and are much more than just capital – they bring deeper levels of partnership, consulting and executive guidance, and resources and technology – while maintaining a larger scope of independence for the investee.
While Brian Hamburger warned us that staking contracts often contain clauses that investees later regret, with a careful approach and a good counsel, an advisory firm may find that the bespoke world of minority stakes may have exactly what it wants to strike a tailored balance between external equity and internal control to find its ideal maximized value for the long term.
If you would like to discuss Larry’s Take further, including how these trends might impact your business, please contact me at larry.roth@rlrstrategicpartners.com.
Recruiter Of The Month: Kyle Miller, Managing Director Of M&A, EP Wealth
EP Wealth Advisors has been actively acquiring firms as of late. Earlier this month, it acquired Tennessee-based Criterion Capital Advisors, with over $500 million in AUM. In October, it bought $1.1 billion CornerCap, based in Atlanta.
Its previous 2024 acquisitions were Sloan Investment Management in Dallas, with $700 million in assets; Wacker Wealth Partners in San Luis Obispo, California, with $1.2 billion in AUM; and Parker Advisory Group in St. George, Utah, with $188 million in AUM.
A key player in EP’s acquisitions is Kyle Miller, the firm’s Managing Director of M&A. We spoke to him about his firm’s success and strategy. Our conversation follows:
WSR: What unique value do you bring to the table that draws sellers to you?
Miller: EP is a scaled, employee-controlled, fee-only RIA growing at one of the fastest rates in the country. We are one of a select few strategic partners that are not beholden to private equity ownership, allowing us to invest in talent and services with a long-term and client-focused mindset. EP’s family office model helps to reduce administrative burden, so that we may focus more of our time on serving our partners and clients.
Our skilled and experienced Wealth Management Services (“WMS”) team is comprised of 63 team members (33 CFPs, 12 EAs/CPAs, 9 estate professionals and 3 CDFAs) who provide support and dedicated subject matter expertise for our advisors. Every advisor-client relationship at EP is surrounded by a WMS support team, with specialists in tax, real estate, Medicare, business valuation and more.
WSR: What defines your ideal target firm?
Miller: EP partners with like-minded entrepreneurs who lead planning-first organizations and share our commitment to a holistic, client-centric approach. EP’s partnership strategy is geography and AUM agnostic, focusing instead on our search for the best talent and cultural fit. Wealth management is a person-to-person business, nurtured through a thoughtful approach, and built on strong client relationships and trust.
Our advisors value maintaining a personalized, boutique experience for their clients to perpetuate that trust while benefiting from the infrastructure and resources that the national EP brand provides.
WSR: What are your inorganic growth plans for 2025?
Miller: New partnerships allow EP Wealth to support the unique skills and capabilities of entrepreneurs who are dedicated to serving their clients as fiduciaries. They also provide an opportunity for advisors to pair their local client service and delivery with the significant resources of a successful, growing, national firm. EP Wealth’s value proposition continues to resonate across the marketplace, giving us confidence that 2025 will likely be another strong year for inorganic growth.
Mergers & Acquisitions
Rise Growth Invested Minority Stake In Grimes & Company
Austin, Texas-based Rise Growth Partners is taking a minority investment in Grimes & Company, a family-owned and operated wealth management firm with around $5.7 billion in assets under management (AUM). The acquisition is its second minority investment.
Grimes & Company was founded in 2017 by Timothy (Tim) Grimes and now led by his son Kevin Grimes, with offices in Massachusetts, Texas, Florida and Nebraska. It serves about 3,000 U.S. households. Through the partnership, it intends to expand its geographic presence, refine its centralized planning process and attract advisor teams and firms.
“Grimes has built an incredible business by delivering truly bespoke investment portfolios at scale, something rare in an industry dominated by model-driven approaches,” said Joe Duran, ****Managing Partner at Rise. “We see a tremendous opportunity to partner with investment-centric firms that value centralized planning and growth while maintaining the flexibility of customized portfolios.”
New DeVoe Study: Advisors Expect Big Year For RIA M&A
After declining to a record low in 2023, advisor M&A expectations surged in 2024, according to the “Annual RIA M&A Outlook” by DeVoe & Company. Last year set a new record for RIA mergers and acquisition activity with 269 closed deals, DeVoe reported in a separate study on Dec. 19, 2024.
Over 40% of advisors who responded to the DeVoe & Company 2024 M&A Outlook Survey anticipate an increase in activity – much greater than the 18% who shared that expectation the previous year. Among sellers, 65% cite growth as their top reason for entering a transaction, more than succession or liquidity.
“After an 8% increase from 2022 to 2023, the share of survey respondents who expect valuations to be higher than the previous year rose by another thirteen percentage points in 2024,” the study reported. “This increasingly positive outlook is further evidenced by a 23% decrease in those forecasting lower valuations and a 10% rise in those expecting valuations to hold steady.”
Sanctuary Wealth Took Minority Position In Alluvial
Indianapolis-based Sanctuary Wealth announced it has completed a minority investment in Alluvial Private Wealth. Sanctuary previous made minority investments in 10 of its partner firms. The Alluvial transaction is the first completed since the formalization of Sanctuary’s Strategic Capital Partnership program, which provides wealth management firms a way to raise capital.
Alluvial Private Wealth was founded by financial advisor Founder and Financial Advisor Lars Olson formed Alluvial after breaking away from Merrill Lynch in 2021, partnering with Sanctuary. Olson is expected to use the new capital to expand Alluvial’s capabilities and fund increased client support.
“The demographics of our industry provide an incredible opportunity for entrepreneurial, growth-minded financial advisors to build their own enterprise, and Sanctuary stands ready to be their strategic partner in this process,” said Sanctuary CEO Adam Malamed. “Our strategy is centered on helping our Partner Firms improve their offering to clients and increase their enterprise value.”
Creative Planning Acquired Maxwell Wealth Strategies
Overland Park, Kansas-based Creative Planning acquired Pleasanton, California- based Maxwell Wealth Strategies. Founded in 2015, Maxwell manages more than $290 million in assets. Its services include investment management, financial planning and risk mitigation.
Creative Planning and its affiliates had combined assets over $345 billion as of Sept. 30. It provides services in 50 states and 90 countries.
“This acquisition marks the beginning of a transformative year ahead focused on expanding our reach and enhancing our commitment to exceptional client service. The Maxwell Wealth Strategies team has established themselves as trusted advisors through their dedication to client success,” said Peter Mallouk, CEO of Creative Planning.
Advisor Transactions
RFG Advisory Recruited Strodtman Wealth
Birmingham, Alabama-based RFG Advisory recruited Patrick Strodtman, who launched Strodtman Wealth Management (SWM). The fifth Texas-based advisory team to partner with RFG, SWM expands RFG’s presence in the Dallas-Fort Worth area.
Strodtman has almost 10 years of experience in the financial services industry, previously working at Fidelity Investments and Empower Retirement. Most recently, he was Director, Financial Planning at Edelman Financial Engines. SWM has $90 million in AUM.
“Patrick typifies the entrepreneurial spirit of Advisors that we are committed to serving,” said, Abby Salameh, Chief Growth Officer at RFG. “We are delighted he has chosen to partner with us in the launch of his business and look forward to supporting him and his clients.”
LPL Added Three Former Raymond James Advisors
San Diego-based LPL Financial announced that former Raymond James financial advisors Shane J. Prill, Vance E. Garwood and Grant Garwood joined LPL Financial’s broker-dealer, RIA and custodial platforms. The trio brings $900 million in combined assets.
Based in Wichita, Kansas, Prill began his investment career in 1986. Brothers Vance and Grant Garwood, joined Prill’s team in 2008 and 2019, respectively. The trio is joined by four office support staff: Janna McConnaughhay, Deb Kelly, Luke Prill and Taylor Phillips.
“Our business has grown substantially over the years, and we believe that affiliating with LPL best positions us to continue providing the high level of service clients have come to expect,” Prill said. “LPL also allows our office to increase efficiencies by taking advantage of new innovative technology capabilities and strategic business resources. By utilizing these tools, we can better steward our time and invest in the relationships with our clients.”
Advisory Team Launched XXI Wealth In Partnership With Dynasty
Dynasty Financial Partners is partnering with a four-person team as they launch XXI Wealth, an independent firm based in Chicago. The new firm will be led Kurt Newsom, Managing Partner, Wealth Advisor, formerly with CIBC; Matt Cavanaugh, Managing Partner, Director of Investments, formerly with a multi-family office RIA; and Kathleen Merkle and Elizabeth Sadler, both SVPs and Client Service Managers formerly with CIBC.
The four have an average of over 25 years’ experience. XXI selected Schwab and Fidelity as custodians, and will partner with Pontera to support its 401k management offering. Its clients include athletes, attorneys, business professionals and entrepreneurs.
“The XXI Wealth team has extensive operational backgrounds, so they are very familiar with the never-ending puzzle of which technology and processes are needed to improve efficiency and ultimately the client experience,” said Shirl Penney, Founder and CEO of Dynasty Financial Partners. “We are proud to partner with them and provide them with the right infrastructure that allows them to focus 100% on their clients from Day One.”
Strategic Partnerships
Alera Group Expanded Wealth Management And Retirement Platforms
Deerfield, Illinois-based Alera Group, an independent national insurance and financial services firm, announced a significant expansion to its wealth management and retirement plan divisions, which will be led Rob Lieblein, Chief Development Officer and one of the firm’s founding partners.
The firm’s wealth management platform has $10 billion in AUM while its retirement group has $40 billion in AUM. It provides advisor partners with expertise in property and casualty insurance, employee benefits and retirement planning.
“Alera Group has always been committed to growth, and this enhanced commitment to financial services represents an exciting new chapter for us,” said Rob Lieblein, Chief Development Officer at Alera. “We are investing in the infrastructure, leadership and capabilities necessary to become a leading force in the wealth management space. Our collaborative culture and multidisciplinary approach set us apart, allowing us to create unique opportunities for advisors to expand their businesses and better serve their clients.”
Promotions and People Moves
Private Advisor Group Added Farnham As New Director Of Advisor Growth
Morristown, New Jersey-based Private Advisor Group is rolling out an expansion of its Advisor Engagement program designed to provide more guidance, resources and expertise to help advisors scale their businesses. The wealth management firm has tapped John Farnham as a Director of Advisor Growth and Engagement to lead the effort.
The engagement team will provide consulting, align advisors with tools, leaders and strategies and help them leverage the resources including the firm’s Alignment & Equity Program, WealthSuite, and Advisor Protection Program.
“I’m thrilled to join Private Advisor Group and be part of a firm that is truly committed to empowering advisors with the resources and strategic guidance they need to grow and succeed,” said Mr. Farnham. “I look forward to collaborating with the talented team at Private Advisor Group and working closely with advisors to help them navigate challenges, seize new opportunities, and bring their businesses to the next level.”
Cresset Capital Added Karetny As Chief People Officer
San Francisco-based Cresset Capital hired former J.P. Morgan Chase executive Melissa Karetny as Executive Managing Director and Chief People Officer. With over 20 years of experience in human resources, she most recently completed a transition role with J.P. Morgan Chase supporting integration after it acquired First Republic Bank.
Karetny is based in San Francisco and will be a member of Cresset’s Management Committee. Cresset is an independent multi-family office and private investment firm with more than $65 billion in AUM as of Jan. 15.
“I’ve had the pleasure of working with Melissa and know her as a trusted advisor, coach and counselor to leaders at all levels, as well as a strategic change agent and thoughtful communicator,” said Susie Cranston, President and COO of Cresset. “All of us at Cresset couldn’t be more pleased to welcome her to the team.”
OneSeven Tapped Todd Resnick As CEO
Cleveland-based independent advisor platform OneSeven is bringing a new CEO aboard, as its longtime chief executive is taking on a new role. The company announced Ron Gross, who served as the CEO since the firm’s inception, stepped down to become Chairman. Todd Resnick, OneSeven’s President, became CEO on Feb. 18.
The transition comes at a time when OneSeven expanded its advisor base by over 45% in the past two years. It manages over $5.3 billion in client assets. As President, Resnick has been instrumental in enhancing advisor experiences, successfully leading efforts to onboard 33 advisors and increase the firm’s AUM by over 37% over the last two years.
“I’m honored and energized to step into the role of CEO,” said Resnick. “OneSeven’s success is built on a foundation of innovation and collaboration. I am committed to building on that foundation and accelerating our growth while staying true to our core values.”
VestGen Hired Six To C-Suite To Complete Firm’s Executive Team
Chicago-based VestGen Wealth Partners announced the onboarding of six members of its C-suite to complete its executive team. The firm launched in December with 10 advisory practices representing $5.3 billion in client assets.
Led by Co-Founder and CEO Josh Gerry, the firm hired Jason Hanavan as President and Chief Financial Officer, Ferian Nickelson as Chief Operating Officer, Greg Gessert as Chief Growth Officer, Timothy Woods as Chief Legal & Compliance Officer,
Sarah Musante as Chief Human Resources Officer and Leann Stevens as Chief Marketing Officer.
Gerry said, “To achieve our growth ambitions, we’ve assembled a veteran team that has consistently demonstrated its ability to innovate, scale and deliver results. Their collective experience spans the entire spectrum of our industry – from founding and growing RIAs to leading operations at some of the largest financial institutions.”
Julius Buchanan, Editor in Chief at Wealth Solutions Report, can be reached at julius.buchanan@wealthsolutionsreport.com.
