This edition of the Deals & Recruiting Roundup covers Merit’s acquisition of Sanctuary, Summit’s stake in Gateway, Wealth Partners Capital Group and HGGC’s stake in MCF, Pure’s purchase of PIM, Integrated’s recruitment of Prout, GCM Grosvenor’s joint venture with Ryan Chapman, AssetMark’s debut of its succession program, Dynasty appointing investment banking leaders, Sequoia Financial Group naming a General Counsel, Altruist appointing a Chief Business Officer, Orion naming an EVP of Wealth Product and Clearstead appointing an Executive Chairman.
Larry’s Take
Shirl Penney says below that the potential for Dynasty’s in-house investment bank is limitless. Dynasty isn’t the only wealth management firm with an in-house investment bank, and the strategy makes sense for firms with the means to develop one, especially those that have a network of affiliated firms.
Home offices can offer the same packages as private equity firms that bundle management consulting to attract sellers. They can also provide advisory work without providing capital, the same as boutique advisory firms.
For advisory business owners looking to sell for succession or receive a minority stake for growth, this provides more options, which is both better and worse – better because more options means more possibilities for a deal tailored to their exact needs, but worse because it can lead to analysis paralysis.
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 And Acquisitions
Merit Financial Advisors Enters Idaho Market With Acquisition Of Sanctuary Wealth Management
Wealth management firm Merit Financial Advisors purchases Pocatello, Idaho-based Sanctuary Wealth Management. Merit has over $12 billion in combined assets and over 40 offices. The deal, which will boost Merit’s assets by $1.6 billion, is the company’s second largest acquisition to date.
Sanctuary specializes in investment advisory and portfolio management. The firm’s Fiduciary Services subsidiary focuses on employee stock ownership plans (ESOP), including transactions and trustee services. The firm’s owners, Brett Robison, Gene Clay Esplin and Joel Phillips, will become Wealth Managers at Merit and be joined by the rest of their team.
“We are regularly working to strengthen Merit by expanding our ability to serve more clients within the West Coast, a goal we’ve achieved” through this acquisition, said Tait Lane, Managing Principal and Partner at Merit. “With more than 20 years of experience serving high-net-worth clients and corporate clients, Brett, Clay, Joel, and their team will help elevate our expertise in these areas.”
Summit Financial Acquires Stake In Gateway Advisory
Investment advisory firm Summit Financial purchases a stake in Troy Hills, New Jersey-based Gateway Advisory. Gateway is led by Brian Power, Jay Flamme and Glen Blachman. The deal is Summit’s 21st investment since the start of 2024.
Founded in 2010, Gateway manages $830 million in assets under management (AUM) and specializes in investment advice, tax planning, risk management, estate and wealth transfer planning, philanthropy and cash flow and debt management.
“The addition of Gateway builds on our record-breaking momentum and underscores our commitment to empowering entrepreneurial advisors,” said Stan Gregor, CEO of Summit Financial Holdings. “We are dedicated to providing advisors the tools, resources and support needed to achieve scale without compromising identity or high-touch client service. We are eager to see the future growth and success that this partnership will bring.”
Wealth Partners Capital Group And HGGC Acquire Minority Stake In MCF Advisors
Wealth Partners Capital Group (WPCG) and private investment firm HGGC purchase a minority stake in MCF Advisors. Founded in 2004, by Chairman Bob Sathe and CEO Dave Harris, MCF is headquartered in Lexington, Kentucky, and managed over $3.3 billion in client assets as of Dec. 31. MCF’s management team continues as the majority shareholder, with control over decision-making and operations.
WPCG is a financial services holding company, which invests in and partners with wealth management firms. HGGC invests in technology, business services, financial services and consumer enterprises generally valued between $200 million and $1.5 billion and has over $8 billion in cumulative capital commitments.
“MCF is an outstanding business with a deep and experienced leadership team and a scalable operating and investment platform,” said John Copeland, Managing Partner of WPCG. “MCF leads with a client-first planning approach, and we are excited to assist Dave and his team as they support more advisors and their clients in more places.”
Pure Financial Advisors Acquires Personal Investment Management
Independent financial advisory firm Pure Financial Advisors acquires Personal Investment Management (PIM), headquartered in Redmond, Washington. PIM provides financial, investment and tax planning services to a client base located in the Seattle metro area, many within the higher education system of Washington. The company managed $567 million in AUM as of Dec. 31.
Backed by private equity firms Lee Equity Partners and Emigrant Partners, Pure has purchased five advisory firms over the past three years. Lee invests in middle-market financial and healthcare firms. Emigrant makes minority, non-voting investments in wealth and alternative asset management companies.
“This acquisition is an important step in our growth strategy,” said Dominic Knauf, Managing Partner of Pure. “The expertise that PIM brings to the table will bolster our existing Seattle location … and we look forward to expanding our reach in the Pacific Northwest.”
Advisor Transactions
Integrated Partners Recruits Prout Financial Design Team In Michigan
Waltham, Massachusetts-based Integrated Partners announces that Traverse City, Michigan-based Prout Financial Design joins its network. Led by Founder Dennis Prout, Prout Financial oversees more than $331 million in assets under advisement.
Founded in 1996, Integrated boasts 220 advisors, 200 plus CPAs and 116 regional offices across the United States. In January, San Diego-based Retirement DNA, with $1 billion in assets, joined Integrated, expanding its West Coast presence.
Dennis Prout and “his team exemplify the kind of client-focused, community-driven firm that thrives within the Integrated network,” said Rob Sandrew, Chief Growth Officer at Integrated Partners. “Prout’s deep roots in financial education and service align perfectly with our approach. We believe in empowering firms with the coaching, consulting and infrastructure they need to expand strategically and build a legacy that lasts.”
Strategic Partnerships
GCM Grosvenor Forms Joint Venture With Ex-Blackstone Executive
Global alternative asset management solutions provider GCM Grosvenor forms a joint venture with Ryan Chapman that will focus on RIAs, independent broker-dealers and family offices. The partnership, Grove Lane Partners, aims to provide individual investors with private alternative investments that would typically be for institutions, managed by GCM Grosvenor and third-party managers.
Chapman, who held several senior leadership positions at Blackstone, leads the initiative. GCM holds a minority stake in the venture at present, with an option to acquire its full equity.
“We are committed to equipping advisors with sophisticated alternative investment solutions from leading asset managers that can enhance portfolio diversification and long-term return potential,” Chapman said. “We are excited to partner with GCM Grosvenor given their extensive track record in alternative investments and their unwavering focus on client success.”
AssetMark Debuts Succession Planning Program For Advisors
AssetMark, which provides financial advisors with wealth management and technology solutions, launches a program the help advisors with succession planning. Called “Ascent,” the program provides advisors with education and guidance throughout their careers.
Ascent provides training, mentorship and events, structured across three career stages: future advisors, who are new to the industry; successor advisors, who are considered next generation leaders; and established advisors, practice owners who are approaching retirement.
“The launch of Ascent is AssetMark’s latest step in our mission to continuously enhance and grow the capabilities that we provide to today’s financial advisors,” said Michael Kim, CEO of AssetMark. “The job of an advisor continues to evolve, so naturally, their expectations of a service partner platform do too.”
Promotions & People Moves
Dynasty Names Two Industry Veterans To Lead Investment Bank
Independent wealth management firm Dynasty Financial Partners appoints Sam Anderson and Harris Baltch to oversee its investment banking unit. Launched in 2023, Dynasty Investment Bank serves both wealth management and asset management firms, including M&A advice and execution for buyers and sellers, capital underwriting, valuations and succession planning.
Harris has been at Dynasty for five years, and Anderson for almost four. Prior to joining Dynasty, Anderson and Baltch worked as investment bankers at Goldman Sachs and UBS, respectively. Combined, they have completed over $50 billion in M&A deals and over $100 billion in financing.
“This expanded leadership team we announced today developed naturally from activity already underway supporting our network of firms,” said Dynasty Founder and CEO Shirl Penney. “We are proud of the way our business has progressed through the alignment and close partnership we have with our clients. The potential for this area of our business is limitless.”
Sequoia Financial Group Appoints General Counsel
Sequoia Financial Group names Michael Marhofer as Executive Vice President, General Counsel and Corporate Secretary. He has over 30 years of experience as a corporate attorney with M&A, joint ventures and divestitures. Prior to Sequoia, Marhofer was a Partner at Benesch Law Firm in Cleveland, where he was Co-Chair of its corporate and securities practice and a member of its executive committee.
Sequoia oversaw $22.6 billion in AUM as of Dec. 31. It has 30 offices in 19 states and has made eight acquisitions since 2023. In February, it agreed to acquire Carlson Capital Management, which had $3.8 billion in assets as of Dec. 31.
“We have known Mike for years, as an ambassador in the community and as our outside counsel, and he will be an important and influential member of the Sequoia Financial team,” said Tom Haught, CEO of Sequoia Financial. “Not only is Mike a skilled attorney with expertise in mergers and acquisitions, he is an exceptional mentor and leader and will help us execute our inorganic growth strategy.”
Altruist Names Former Google, Meta Executive As Chief Business Officer
Altruist appointed Rich Rao as Chief Business Officer, tasked with driving the company’s market expansion, strengthening advisor partnerships and ensuring sustainable growth.
Prior to Altruist, Rao served as Chief Sales Officer at Intuit. Leading the Small Business Group at Meta, he drove a significant portion of the company’s revenue growth. At Google, Rao helped turn Google Workspace into a multi-billion-dollar business.
“The best companies combine exceptional products with hyper-efficient go-to-market engines,” said Jason Wenk, Founder and CEO of Altruist. “Rich’s career has been defined by taking transformative products to market in key leadership roles.”
Orion Appoints Michael Mandelos As EVP Of Wealth Management Product
Orion names Michael Mandelos as Executive Vice President of Wealth Management Product, charged with managing partner relationships and overseeing product portfolios, including platform technology and investment solutions.
Prior to Orion, he served as Head of National Accounts for Miller/Howard Investments. Before that, he was Head of Separately Managed Accounts and Unified Managed Accounts at UBS Wealth Management. Mandelos began his career at J.P. Morgan as a Mutual Fund Product and Relationship Manager.
“At Orion, we are ‘All In’ on empowering advisors with the open architecture investment solutions, technology and support they need to succeed,” said Ron Pruitt, President of Orion Wealth Management. ”We’re confident that Michael’s deep understanding of investment product development, coupled with his extensive background in designing and executing comprehensive go-to-market strategies for new product launches, will further elevate our ability to provide cutting-edge solutions that help financial professionals elevate and grow their practices.”
Clearstead Appoints Robert Thornton As Executive Chairman And Chairman Of The Board
Clearstead Advisors names Robert Thornton to lead its board of directors as Chairman of the Board and Executive Chairman. The Cleveland-based firm advises over $47 billion in assets for private clients and institutions. Its largest shareholder is Flexpoint Ford.
Prior to Clearstead, Thornton was President of First Republic Bank Private Wealth Management. Thornton also held positions at Deutsche Bank, Lehman Brothers, Credit Suisse and Goldman Sachs.
“Bob is a strong, accomplished industry veteran who brings significant experience and broad perspective to Clearstead,” said Clearstead President and CEO Brad Knapp. “His national perspective, strategic vision, and leadership will be instrumental as we plan for our future and continue to grow our firm nationally.”
Julius Buchanan, Editor in Chief at Wealth Solutions Report, can be reached at julius.buchanan@wealthsolutionsreport.com.
