This edition of the Deals & Recruiting Roundup covers Hightower investing in Financial Planning and Information Services, Neuberger Berman taking a large minority stake in Mariner, Lido Advisors acquiring Platte River Wealth Advisors, MAI Capital Management acquiring Hyperion Partners, Cerity Partners merging with Paladini Financial Management, Kestra Financial recruiting Wealth Empowerment Financial Strategies, Compound Planning adding five advisors, Homrich Berg bringing on a Florida-based family office advisory team, Cresset appointing Jessica Malkin as Chief Growth Officer and RBC Wealth Management recruiting two teams from Morgan Stanley.
Larry’s Take
The significant number of major firms involved in this edition’s M&A coverage supports recent findings from the DeVoe & Company Q3 2024 RIA Deal Book, that deal volume is tracking ahead of last year’s pace, with RIAs of all sizes seeing M&A as a path to accelerating growth.
DeVoe also found that, as of Q3, the average size of sellers this year was $985 million in assets under management (AUM), up from $819 million in full-year 2023 and $827 million in full-year 2022 but still below the $1.1 billion in full-year 2021 – that is, excluding seller transactions over $5 billion in AUM.
But it’s also worth remembering that even very large wealth management firms are open to investments from players in the private equity space, as shown by Neuberger Berman’s stake in Mariner, which quickly followed Stone Point Capital agreeing to acquire a majority interest in Kestra Holdings.
With less than two months to go before year-end, it’s anyone’s guess if we’ve already seen the biggest deal of 2024 or if a late quarter surprise is still on the horizon. Either way, RIAs and independent broker-dealers are definitely preparing to keep the M&A pipeline flowing in 2025.
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. Hightower Invests In $1.1 Billion Wisconsin Firm
Chicago-based Hightower invested in De Pere, Wisconsin-based Financial Planning and Information Services (FPIS), which has over $1.1 billion in AUM. Lon Mishler founded FPIS in 1985. President and CEO Ryan Wempe, along with Vice Presidents Dan Budinger and Rachel Brown, lead the firm, which will keep its brand.
FPIS also promoted Brock Becker and Carl Ekstrom as Partners. The 16-person team is Hightower’s fifth strategic investment this year. Hightower provides advisory groups with access to organic and inorganic growth services, as well as its national in-house trust company and wholly owned CPA firm. Hightower consists of 140 advisory teams nationwide representing total AUM of approximately $156 billion as of June 30.
“FPIS built its practice on a core principle that is still its backbone nearly 40 years later,” said Bob Oros, Chairman and CEO of Hightower. “Their leaders’ decision to join Hightower highlights our shared dedication to community and the importance of developing long-term, generational wealth relationships.
2. Neuberger Berman Takes Large Minority Stake In Mariner
Neuberger Berman, through NB Capital Solutions and funds managed by NB Private Markets, made a significant minority growth investment in Overland Park, Kansas-based Mariner, which advised on over $245 billion in assets as of June 30. The firm’s goal is to scale its national advisor base to 5,000 professionals.
The private equity firm Leonard Green & Partners (LGP) will keep its investment in Mariner, which LGP made in 2021. Mariner provides retail and institutional clients with financial planning, investment management, retirement planning, estate and tax planning services, as well as insurance products.
“Mariner is fully committed to building the fiduciary service provider of the future,” said Marty Bicknell, CEO and President of Mariner. “With this investment and continued partnership, we are confident in our ability to reach new heights in both client service and business expansion as we continue to build a truly holistic financial services firm rooted in the vision of positively impacting the lives of many.”
3. Lido To Acquire $600 Million Platte River Wealth Advisors
Los Angeles-based Lido Advisors, which had over $24 billion in AUM as of Sept. 30, is acquiring Louisville, Colorado-based Platte River Wealth Advisors, which has over $600 million in AUM. Tyler Olsen, President and Wealth Advisor, and Warren Baker, Director of Investment Strategy, will become Partners.
Lido, which has 15 offices nationwide, provides a family office experience; an active approach to asset management that includes risk mitigation as well as alternative, core and tactical investment strategies; along with access to affiliated professionals who provide customized tax, estate and legacy solutions. In October, Lido announced it would acquire Mequon, Wisconsin-based Pegasus Partners, an RIA that had over $3 billion in AUM as of Dec. 31.
“We’re excited to welcome the Platte River team to Lido Advisors, where growth-minded talent thrives. Our M&A strategy has always been about adding top-tier professionals and strategically expanding our geographic footprint in key regions, and this team embodies that vision,” said Jason Ozur, CEO of Lido Advisors. “Lido was founded by CPAs and attorneys – and our roots have helped us prioritize talent that fuels long-term success.”
4. MAI Acquires $529 Million Hyperion Partners In Pennsylvania
Cleveland-based MAI Capital Management acquired Berwyn, Pennsylvania-based Hyperion Partners, which had nearly $529 million in AUM as of Sept. 30. The firm serves businesses and high net worth individuals. Jeffrey Leber and Vaughn Schill founded Hyperion in 2018. They will become Regional Presidents at MAI.
As of Sept. 30, MAI’s team of more than 475 financial professionals had $3.2 billion in assets under advisement and $28.2 billion in total assets, including accounts advised but not actively managed by MAI and accounts managed by third-party advisors using an MAI model. In October, MAI acquired Halpern Financial, an RIA with $1.2 billion in AUM as of Sept. 30.
“When we choose to expand our team, we look for partners who understand that clients come first,” said Patrick Gingras, Market Leader and Regional President at MAI. “Jeff, Vaughn, and the full Hyperion team provide high quality service and advice for their clients across a wide net of capabilities from tax and estate planning to business strategies. We look forward to providing them with our full suite of resources and support so they can continue to enhance and grow their business.”
5. Cerity Merges With $169 Million Paladini In Texas
New York-based Cerity Partners merged with Arlington, Texas-based Paladini Financial Management, which had nearly $169 million in AUM as of its March SEC ADV filing. The firm was founded in 2006 by Matthew Paladini, who has 22 years of industry experience. He co-founded Wealth Advisors Trust Company, and previously worked at Cain Watters & Associates and Ernst & Young. DeVoe & Company advised Paladini Financial Management on the deal.
In October, Cerity announced that it is merging with Indianapolis-based SBC Wealth Management, which has approximately $1 billion in AUM, and Denver-based Janiczek Wealth Management, with over $1.1 billion in AUM, according to its March SEC ADV filing. Back in April, when Cerity announced that it would merge with Denver-based Agility, the firm anticipated reaching total combined assets of approximately $100 billion.
“We’re excited to share that Paladini Financial Management has merged with Cerity Partners, expanding our commitment to clients in Arlington, TX,” Cerity posted on LinkedIn. “Our combined expertise ensures a seamless experience in wealth management and financial planning,” Paladini Financial Management posted on LinkedIn.
Advisor Transactions
6. Kestra Picks Up $1.4 Billion Advisor Team From B. Riley
Kestra Financial added Wealth Empowerment Financial Strategies (WEFS), an advisor team in Boca Raton, Florida, overseeing $1.4 billion in AUM, to its network of independent wealth management firms. Kestra picked up WEFS, which includes 31 independent advisors and staff members, from B. Riley Wealth Management.
Founded in 2006, WEFS is led by Eric Lyon, Senior Managing Director and Founder, and Tom Holly, Senior Managing Director. Lyon and his team have almost three decades of experience and specialize in wealth management and retirement solutions. WEFS also will continue offering clients estate planning, 401(k) solutions and cash balance strategies. Kestra Financial oversees $103 billion in assets under advisement and supports more than 1,700 independent financial professionals.
“After a long process of interviews and due diligence, the decision to move forward with Kestra Financial was a natural one,” Lyon said. “We were impressed with everything Kestra Financial had to offer – from its executive management team and technology platform to its back-office tech and resources – and knew this would help the growth of our firm down the line.”
7. Compound Planning Adds Five Advisors, Reaches $2.5 Billion In AUM
Compound Planning, a digital family office and tech-focused RIA, recruited five more advisors with over 70 years of combined financial services experience. This brings the firm’s total AUM to $2.5 billion and is a 25% increase since June. Compound has added 26 advisors so far this year, and added 10 advisors in 2023.
Mark Patzer previously worked at Miracle Mile Advisors, Karp Capital Management, Boyd Wealth Management and Presidio Capital Management. Alec Montoya previously worked at Mercer and LPL. Joe Perna previously worked at Motley Fool Wealth Management, Northwestern Mutual and Morgan Stanley. Scott Hedgcock previously worked at Aletheian Wealth Advisors, Cornerstone Advisors, Coldstream Wealth Management and Washington Trust Bank. And Todd Rowe previously worked at Choreo and RSM US Wealth Management.
“Our five new advisors each offer unique expertise and invaluable experience, and I’m excited to officially welcome them to our team,” said Christian Haigh, Co-Founder and CEO of Compound Planning. “The recruiting environment across wealth management is undoubtedly competitive and it has been extremely gratifying to receive such a positive reception from the advisor community this year.”
8. Homrich Berg Recruits Family Office Team In Florida
Atlanta-based Homrich Berg (HB) brought on Larry Parkin as Principal and Florida Market Leader, accompanied by an 11-person family office advisory team that he previously led in Tampa, Florida, and that managed over $4 billion in assets. Parkin has 25 years of wealth management experience. He most recently served as a Managing Director leading West Florida for Truist Private Wealth Management.
The new team members include Principals Lex Smith, Ryan Best, Keith Johnson, Brad Glover and John Willoughby; Managing Director Steve Cass; Managing Director and Family Wealth Strategist Drew LaGrande; along with Benjamin DePalmo, Melissa Baron, Marjorie Sjostrom and Casey Jackman. HB managed over $18 billion in assets as of Sept. 30.
“I came out of retirement because I was excited to take on a leadership role for a leading independent wealth management firm with a fiduciary, fee-only approach to putting families and their financial goals at the forefront of their work,” Parkin said. “Getting to know the leadership team’s vision of client-oriented culture showed me that I made the right decision to align with HB – it felt like home.”
Promotions & People Moves
9. Cresset Appoints CMO Jessica Malkin As Chief Growth Officer
Chicago-based multi-family office and private investment firm Cresset appointed Jessica Malkin as Chief Growth Officer and Executive Managing Director. She will focus on strategic growth initiatives, including leading the advisor team lift out program, digital marketing initiatives, client experience, branding and communications. Cresset had $55 billion in AUM as of Oct. 1.
Malkin started at Cresset in 2019 as an advisory board member, and then joined full-time as Executive Vice President. She also will continue as Chief Marketing Officer, a role she has held since 2021. Prior to Cresset, Malkin was Chief of Staff at the industrial intelligence software-as-a-service firm Uptake, the Founding Chief Executive Officer of the nonprofit Chicago Ideas, a Principal at the public relations firm Tiller and a Senior Account Executive at the PR firm Golin.
“I am honored to take on the role of Chief Growth Officer for a firm that is fundamentally changing the way people experience wealth and reimagining how successful individuals and families engage with their wealth managers,” Malkin said.
Wirehouse / Big Bank Activity
10. RBC Recruits Two Teams Representing $1.4 Billion, From Morgan Stanley
RBC Wealth Management recruited two teams from Morgan Stanley. Baltimore-based The Quarry Lake Group oversaw $1 billion in assets. It consists of Managing Director and Senior Portfolio Managers Avigail Rosemore and Avi Greenlinger, Senior Financial Associate Aaron Forker, Financial Advisor Yitzi Teichman, Senior Business Associate Alan Wolfe and Branch Service Manager Sharon Wunder.
Westport, Connecticut-based The Smalley Girardi Group had over $400 million in AUM. It includes Financial Advisors Richard Smalley and Ali Girardi. In the U.S., RBC Wealth Management had $619 billion in total client assets as of July 31, across more than 2,100 advisors operating from 191 locations. It is a subsidiary of Royal Bank of Canada.
“We take a comprehensive approach that is grounded in investment strategy but covers virtually every aspect of a client’s financial life,” Rosemore said. “We recognized the strength of RBC and its global brand. The firm’s ability to support us in risk management, liabilities, trusts and estate planning strategies was an attractive element as well.”
Chris Latham, Managing Editor at Wealth Solutions Report, can be reached at clatham@wealthsolutionsreport.com.
