This edition of the Deals & Recruiting Roundup covers EP Wealth acquiring Better Money Decisions, Wealthspire buying Marin Financial Advisors, MAI buying Evoke, LPL and Raymond James recruiting multiple firms, wirehouse breakaways forming Longleaf Capital, RBC recruiting Carol Johnston, Sanctuary onboarding Marksman, NewEdge welcoming David Chase, Osaic recruiting a Tennessee team, custodian Altruist onboarding Bone Fide Wealth and Focus Financial appointing a Chief Strategy Officer.
Larry's Take
Deal terms haven’t been disclosed, but you can bet that MAI’s acquisition of Evoke came with a hefty price tag. From the perspective of MAI and its private equity backers, the deal makes sense, creating a larger family office and ultra-high net worth platform with greater capabilities as this space grows.
Surveying the similar but broader high net worth space, which Cerulli defines as $5 million in investable assets, it predicts this clientele will have over $30 trillion in assets under management (AUM) by advisors in just three years.
From one perspective, this presents opportunities for advisors to grow with both new clients and increased wallet share from existing clients. From the opposite angle, the growth in assets is attracting attention, competition and capital. Deals like MAI’s are likely both playing offense and defense simultaneously.
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
EP Wealth Acquires $370 Million Women-Led Firm Better Money Decisions
Fee-only RIA EP Wealth, based in Torrance, California, acquired Santa Fe, New Mexico-based Better Money Decisions (BMD), with $370 million in AUM. BMD Managing Partner Lorraine Ell will retire as part of this transition, while Managing Partner Lea Ann Knight will join as a Regional Director and Partner.
The BMD team also includes four wealth advisors and one office services associate. One BMD focus area is serving women who are navigating life transitions such as retirement and divorce. This transaction is EP Wealth’s eighth of the year.
“Lorraine and I have shared a vision of putting people at the center of every financial decision,” said Knight. “As we look to the future, joining EP gives us an even greater ability to bring that vision to life.”
Wealthspire Acquires Northern California RIA Marin Financial Advisors
RIA Wealthspire Advisors, based in New York City, agreed to acquire Marin Financial Advisors of Larkspur, California, with over $380 million in AUM. Principal Colin Drake leads Marin, which was founded in 1987. Client Service Director Christine Cione will join Drake at Wealthspire.
After the deal closes, Marin clients will have access to Wealthspire’s trusts and estates planning, tax and insurance strategies, and investment research. Wealthspire had $31 billion in AUM as of June 30, with 25 offices and over 130 advisors. It is owned by NFP, which is owned by AON.
“We’ve always shown up for our clients with care, attention, and practical and personal advice,” said Drake. “This transition enables us to keep taking great care of them, while adding more support behind the scenes.”
MAI Capital Management To Add $27 Billion California RIA Evoke
MAI Capital Management is acquiring Los Angeles-based RIA Evoke Advisors as part of a deal expected to close by the fourth quarter that will create a combined firm with about $60 billion in AUM and assets under advisement across over 30 offices, according to the companies.
As of June 30, MAI had almost $35 billion in assets and Evoke had approximately $27 billion. According to Rick Buoncore, CEO and Chairman of MAI, the combined firm will be headquartered in Cleveland, and the Evoke brand will continue as a specially branded offering for ultra-high net worth clients.
“We’ve known and admired each other for years, and over the past several months began discussing ways to work together,” Buoncore said. “Those conversations flowed naturally, and ultimately, we recognized that our cultures and vision for client service were strongly aligned.”
Advisor Transactions
LPL Recruits Concentric From Cetera And Skyward Financial From Wedbush
LPL Financial recruited the advisors of Houston-based Skyward Financial, with approximately $700 million in client assets as of Dec. 31, to its broker-dealer and RIA platforms from Wedbush Securities. Skyward is led by founders Matthew Houston, Lynn Houston and Ross Stripling.
The firm also recruited Concentric Wealth Management of Cincinnati with $715 million in retirement plan, brokerage and advisory assets as of Dec. 31. Concentric previously affiliated with Avantax by Cetera. LPL serves more than 29,000 advisors and $1.9 trillion in client assets.
“We welcome the Skyward Financial team to LPL,” said Scott Posner, Managing Director, Business Development at LPL. “As their partner, we are committed to delivering innovative technology, integrated platforms and strategic resources to help them seamlessly run their practice and provide an elevated client experience.”
Morgan Stanley And Merrill Lynch Breakaways Form $2 Billion Longleaf With Arkadios
Advisory teams from Morgan Stanley and Merrill Lynch announced the formation of Dothan, Alabama-based Longleaf Capital Partners, with over $2 billion in assets under advisement on Arkadios Capital’s platform.
Longleaf offers retirement planning; institutional retirement plan consulting; insurance; liquidity event and financial planning; advice on tax, estates and philanthropy; as well as alternatives. Its team includes two CPAs.
“By joining forces, we’ve combined complementary expertise in wealth management, personal financial planning, tax planning, institutional retirement planning and estate planning strategies under one roof,” said Longleaf’s Managing Director, Jonathan D. Lee. “Arkadios provides the infrastructure and resources to let us operate as entrepreneurs while still offering institutional-quality tools and support for our clients.”
Sanctuary Recruits San Antonio-Based Marksman Wealth Management
Sanctuary Wealth added San Antonio-based Marksman Wealth Management to its network. Founded by President and Senior Wealth Advisor Joseph Schuetze, Marksman serves a multi-generational client base. Wealth Associate Stephen Mendoza will join Schuetze, who most recently was affiliated with PAX Financial Group, which he co-founded.
Sanctuary has onboarded 16 partner firms in the past 12 months, representing over $10 billion in client assets. Its network includes over 125 partner firms, with over $50 billion in assets.
“Joseph’s approach and practice are perfectly suited to thrive within our partnered independent model,” said Vince Fertitta, President of Wealth Management at Sanctuary. “With the support of Sanctuary, Joseph will be able to utilize our customized tools, services and solutions to help achieve his goals as a business owner.”
NewEdge Enters Chicago With Recruit From Wells Fargo
RIA NewEdge Wealth recruited a Chicago-based team led by David Chase, which includes associates Robert Belfour, Mia Costarella and Natalie Dymkowski. According to Forbes, Chase’s team managed $613 million in client assets. The team will constitute NewEdge Wealth’s first Chicago office.
At Wells Fargo, Chase worked with executives, institutions and high net worth families, focusing on executive compensation, risk management, wealth transition, financing and the sale of private businesses. His recruitment is part of NewEdge’s broader initiative to meet growing demand from ultra-high and high net worth clients.
Chase said, “Chicago continues to see an explosion of wealth among successful individuals and privately held businesses, and I know together we can help meet their strategic financial needs.”
Raymond James Recruits Advisors From Commonwealth And Wells Fargo
Raymond James recruited Devon, Pennsylvania-based Paul Milnes to Raymond James & Associates, the firm’s employee advisor channel, from Wells Fargo, where he managed $260 million in client assets. Milnes serves business owners, family offices and “sudden wealth clients.”
The firm also recruited a Michigan-based advisor team with approximately $125 million in client assets from Commonwealth to its independent advisor channel, Raymond James Financial Services (RJFS). Its advisors are Mark Kerr, David DeVantier, Brandon Proctor, Isaiah Bross and Ross Terrasi.
Also joining RJFS is Gino P. Molettieri of Reading, Massachusetts, who managed $174 million in client assets at Commonwealth; Stew Flaherty and Tami Colvin of Westerville, Ohio, who bring $305 million in client assets from Commonwealth; and Troy, Michigan-based advisors Gregory Hinkson, Adam Miller and Thomas Boogren, with $450 million in client assets from Commonwealth.
Osaic Recruits Tennessee-Based Advisor Team
Osaic recruited Knoxville, Tennessee-based advisor John Kennedy and his team, with approximately $177 million in assets under administration, from TrustFirst. Kennedy was Senior Partner at TrustFirst. The team includes Ted Shaver, Leslie Grossman, James Powers and Daniel MacDonald.
Partner Don Taylor will remain at TrustFirst to wind down its broker-dealer and RIA business, so that Kennedy and the team can establish the firm under a new model supported by Osaic.
“We’re thrilled to welcome John and his team to the Osaic family,” said Kristen Kimmell, Executive Vice President, Business Development at Osaic. “Their decision to bring TrustFirst into a new era with us is a testament to the strength of our platform and our ability to meet the evolving needs of independent advisors. We look forward to supporting their continued growth and success.”
RBC Wealth Management Recruits San Antonio Advisor From UBS
RBC Wealth Management – U.S. recruited advisor Carol Mani Johnston to its San Antonio branch. She managed $300 million in client assets at UBS. With almost 40 years’ experience, she worked most of her career at Smith Barney before joining UBS.
Johnston is joining the Evergreen Private Wealth Group at RBC, a multi-generational practice that serves families across generations. RBC Wealth Management has 195 offices in 42 states.
“We are excited to welcome Carol to RBC,” said Scott Skinner, RBC Wealth Management’s Texas South Complex Director. “She’s dedicated, passionate, and is committed to the top-notch service we strive for daily at RBC. She cares deeply about her clients and their families, and she’s a great addition to our complex.”
Custodian Altruist Recruits New York City-Based Bone Fide Wealth
Los Angeles-based Altruist, a custodian serving independent RIAs, recruited New York City-based Bone Fide Wealth, with approximately $100 million in AUM, to its custody platform. Founded by Douglas Boneparth in 2016, the firm specializes in millennial and young family clients.
According to Altruist, Bone Fide chose Altruist to help meet the demands of tech-savvy clients. Altruist offers a digital custody platform with a self-clearing brokerage that provides software for account opening, trading, reporting and billing.
“We are thrilled to welcome Bone Fide Wealth to Altruist,” said Jason Wenk, Founder and CEO of Altruist. “Doug and his team have built an incredible practice by putting clients first and embracing innovation. The future of financial advice is all about access – access to great advice, access to intuitive technology, and access for more people to participate in their financial lives.”
Promotions & People Moves
Focus Financial Promotes Travis Danysh To Chief Strategy Officer
Focus Financial Partners appointed Travis Danysh to the newly created role of Chief Strategy Officer with immediate effect. In his new role, Danysh will lead the development and execution of the firm’s strategic plan. Previously he served as the firm’s Chief Corporate Development Officer, and will continue to lead the corporate development function, including M&A and portfolio consolidation.
Danysh, who has worked at Focus for nine years, will serve as Executive Chairman of the firm’s business management unit and its Australian operations and maintain his seat on the firm’s Executive Committee.
“The creation of the Chief Strategy Officer role at Focus and the appointment of Travis to that position are the latest important milestones for our business,” said Michael Nathanson, CEO of Focus Financial Partners. “This role is a natural evolution of his work and professional growth over the years, and I’m confident it will amplify his valuable contributions as well as our substantial investments in industry-leading long-term growth and service excellence.”
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