This edition of the Deals & Recruiting Roundup covers OneDigital’s new majority ownership, MAI acquiring J.W. Coons, Elevation Point investing in Loxahatchee, Dynasty investing in OpenArc, LPL recruiting Tennant, Osaic adding three advisory firms, Carson recruiting GCD, Cetera partnering with Cornerstone, LPL and Prudential collaborating on insurance-based strategies, TradePMR launching a match incentive on deposits, Savvy hiring Anshul Sharma as CIO and RBC recruiting Kevin Carey from J.P. Morgan.
Larry's Take
The breakaway of the OpenArc team that served $129 billion in assets at Merrill Lynch has the potential to change the shape of the industry. Louis Diamond, CEO of Diamond Consultants, said on LinkedIn that this transaction demonstrates that “no advisor is ‘too big’ for independence. The ecosystem is strong enough.”
I believe Diamond will be proven right, though the jury is still out – literally in a sense – because Merrill is challenging this breakaway in lawsuits against the advisors, the investor, Dynasty, and the custodian, Schwab. And while that is working through the courts, OpenArc must get some time under its belt as an independent RIA to stress test this mega-sized breakaway in the real world.
If OpenArc passes the hurdles in front of it, it will set a precedent of what can be done for wirehouse breakaways. If something goes against OpenArc either in legal issues or in adapting to independence, it will also set a precedent for what the limits are. Either way, this deal demands attention.
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
Stone Point And CPP Investments Acquire Majority Stake In OneDigital
Atlanta-based OneDigital receives a majority investment from Stone Point Capital and Canada Pension Plan Investment Board (CPP Investments). The two funds are acquiring shares from Onex Partners and other shareholders. Onex Partners first invested in OneDigital in 2020, and it remains a significant minority shareholder. OneDigital says the deal values the firm at over $7 billion.
OneDigital was founded 25 years ago, and the transaction marks its fourth equity recapitalization, the firm said. The insurance, finance and HR platform operates in five areas: employee benefits, retirement and wealth management, property and casualty, professional employer organizations and Medicare Advantage.
“This commitment from Stone Point Capital and CPP Investments represents two high-quality investors aligning behind a single platform that integrates across a multitude of verticals,” said Adam Bruckman, President and CEO of OneDigital. “This partnership gives us the fuel to keep building – investing in both people and technology, while sharpening our capabilities and showing up even stronger for our clients.”
MAI Capital Acquires J.W. Coons, Adding $612 Million AUM
Cleveland-based RIA MAI Capital Management announces the acquisition of Columbus, Ohio-based J.W. Coons Advisors. The entire advisory team, led by Founder James Coons and Principals Robert Hoffman and Keith Blankemeyer, will continue to serve clients under the MAI brand.
Coons Advisors was founded in 2003 and had about $612 million in assets under management (AUM) as of Sept. 19. It has another location in Naples, Florida. Turkey Hill Management was the advisor on the deal. Founded in 1973, MAI has 33 offices and had nearly $35 billion in client assets as of June 30.
“As we continue to expand our reach in Ohio, Florida and beyond, we are excited to welcome Jim and his talented colleagues to MAI,” said Rick Buoncore, Chairman and CEO of MAI. “Their client-first approach and depth of investment expertise embody the qualities we look for in partner firms.”
Elevation Point Invests In Loxahatchee Capital, Launched By $1.4 Billion Team From UBS
Minneapolis-based Elevation Point announces a minority investment in Loxahatchee Capital, a boutique firm launching in Tequesta, Florida. The multi-family office works with affluent families and charitable institutions. It oversees $1.4 billion in client assets, as of Aug. 31.
Andrew Plum is Managing Partner and Head of the Investment Committee at Loxahatchee, and Tomas Cullen is the firm’s Partner and Senior Portfolio Manager. They lead a seven-person team that was previously the 440 Group, a UBS team. BNY Pershing is the custodian and clearing partner.
“I’ve seen firsthand the regard Andrew, Tom, and their team command in the industry, and we’re proud to help them bring to life their vision of what a boutique, institutional-level family office can offer to more clients,” said Brad Smithy, Founding Partner and Head of Wealth Management at Elevation Point. “Our ongoing, customized support will give them the opportunity to manage more wealth in the South Florida region over the long term and seamlessly maintain their impressive multigenerational relationships.”
Advisor Transactions
Ex-Merrill Advisor Team Launches RIA In Atlanta
Dynasty Financial Partners takes a minority stake in OpenArc Corporate Advisory, a new RIA founded by a team of former Merrill Lynch Wealth Management advisors that advised on $129 billion in institutional and personal client assets as of Dec. 31, according to Dynasty and OpenArc. OpenArc “enters the market as one of the largest independent firms in the corporate benefits and private wealth sectors,” the firms said.
The new RIA “introduces a new model that integrates corporate benefits, executive services, and private wealth management — delivered through a high-touch, open architecture platform,” according to OpenArc and Dynasty. Headquartered in Atlanta, the firm selected Schwab Advisor Services as its custodian. OpenArc also launched the OpenArc Charitable Fund to support underserved communities.
“OpenArc empowers families by delivering the same expert care and resources typically reserved for corporations,” said Erik Bjerke, Senior Managing Partner and Senior Wealth Management Advisor at OpenArc. “It is the powerful integration of corporate benefits and family financial services that we believe will define the future of all wealth management.”
LPL Recruits $1.3 Billion Tennant Financial
San Diego-based LPL Financial recruits Ballston Lake, New York-based Tennant Financial. The team, led by Steven Tennant, Jeremy Berry and Ryan Wade, joins LPL from Northwestern Mutual, where the trio had approximately $1.3 billion in advisory, brokerage and retirement plan assets. They have worked together since 2000 and primarily serve high net worth clients, corporate executives, business owners and medical professionals.
Tennant team members joining LPL include Nancy Monroe, Jason Blair, Stephanie Van Grinsven, Kat Herdzik, Lisa Skiba, Karen Scinto, Jenna Medina Badgley and Whitney Walker.
“The technological landscape has advanced so quickly in the last five years, and we’re excited to bring that to bear for our clients and team,” said Berry. “We are on the cusp of significant change fueled by AI and the impact it will have on our abilities as advisors to provide the best service possible for our clients. By making this change today, it puts us in a position to continue to meet the needs of our clients as well as better support our team, both of which are critical to our current and future success.”
Osaic Adds Advisors From Rightside Financial, ArrowPoint Wealth And AFC Planning
Columbus, Ohio-based advisor Bart Butler joins the Osaic network to launch Rightside Financial, an independent firm. Butler comes from VALIC Financial Advisors, where his team oversaw more than $400 million in client assets. Butler will affiliate with an Osaic office of supervisory jurisdiction (OSJ), Signature Equity Partners.
A $379 million advisory team joins Osaic to launch a new women-led firm, ArrowPoint Wealth Advisors. CEO and Co-Founder Mandy Dollar, formerly with MidFirst Bank, is accredited to advise athletes and entertainment industry clients. Chief Growth Officer and Co-Founder Jennifer Wallis holds a designation in behavioral financial advice. ArrowPoint has offices in Oklahoma City and Edmond, Oklahoma.
AFC Planning Group of Melville, New York, also joins the Osaic network. AFC Managing Partners Lou Addesso and Frank Fattizzi have approximately $110 million in assets under advisement. The pair was previously with LPL Financial, and they join Affiliated Advisors, an Osaic OSJ. “Partnering with AFC Planning Group is a natural fit, and we’re proud to collaborate with a team that shares our client-first values,” said Kristen Kimmell, Executive Vice President of Business Development at Osaic.
Carson Recruits $300 Million GCD Advisors In Illinois
Carson Group announces that an advisor team from GCD Advisors is joining Carson Wealth’s office in Palatine, Illinois. Senior Wealth Advisors Greg Diamond and Neil Cohen, who serve approximately $300 million AUM, will move to Carson Wealth’s Great Lakes office, led by Managing Partner Mark McCallum.
Diamond and Cohen are both CPAs, and their wealth management practice integrates tax planning and offers tax preparation. Carson Group’s network includes more than 150 advisor offices, including more than 50 Carson Wealth locations.
“Greg and Neil have built an exceptional tax-focused practice that perfectly aligns with our philosophy, service and culture,” McCallum said. “This partnership is a true win-win-win—for their clients, who gain expanded resources and continuity; for Greg and Neil, who secure a thoughtful succession plan; and for our team, which gains experienced professionals in the Palatine area ready to serve clients and deliver value.”
Strategic Partnerships
Cetera Partners With Cornerstone On Business Owner Services
San Diego-based Cetera forms a partnership with Cornerstone Business Services to provide business sale services. Cornerstone will provide business sale planning and advice that Cetera advisors can offer to their high net worth clients. Clients who are planning to sell a business will be able to work with both Cetera and Cornerstone to plan their business exit and maximize the after-tax proceeds of a sale.
Cornerstone is an investment bank specializing in business valuation, acquisition and sales for family-owned and privately held companies. Cetera’s network of advisors has approximately $590 billion in assets under administration and $263 billion in AUM as of June 30.
“Cornerstone brings a proven, structured sale process that typically generates multiple offers,” said Scott Bushkie, Founder and Managing Partner of Cornerstone. “When you combine that leverage with Cetera's world-class financial expertise, owners gain true peace of mind. They can be confident they didn't leave money on the table and that their final decision—whether driven by value, legacy, or culture—is firmly in their control.”
Prudential And LPL Partner On Insurance-Based Retirement Strategies
Prudential Financial and LPL Financial collaborate on Prudential insurance-based retirement products for LPL’s managed account platform. LPL’s network of 29,000 advisors will have the opportunity to offer their clients protected lifetime income and other insurance-based retirement products.
The deal comes on the heels of the recent integration of Prudential Advisors onto LPL’s wealth management platform. Prudential Financial has approximately $1.6 trillion in AUM as of June 30, while Prudential’s Retirement Strategies business provides more than $15 billion in protected income payments each year. LPL services approximately $1.9 trillion in brokerage and advisory assets.
“Our collaboration with Prudential marks a significant step forward in how we empower advisors and clients to secure their retirement futures,” said Cheri Belski, Executive Vice President and Head of LPL Investment Management Solutions. “Retirement strategies are at the heart of our mission, and we’re making them a central focus of our ongoing innovation.”
Custodians
Robinhood’s TradePMR Launches 50 Basis Point Match On Deposits
Clearwater, Florida-based TradePMR, a brokerage and custodian services provider, launches an incentive program enabling advisors to offer clients a 50 basis point match on their eligible deposits. The program, called Asset Match, starts on Oct. 1 and continues until March 31, 2026.
Clients who deposit funds into TradePMR accounts will receive an account credit the following month, and the credit will be reported as interest or miscellaneous income, TradePMR said. While banks, credit card companies and retail investing platforms may offer deposit bonuses, independent RIAs have rarely or never done so. TradePMR was acquired by Robinhood in February.
“Independent RIAs have never had access to incentives like this,” said Robb Baldwin, Founder and General Manager of TradePMR. “With Asset Match, we’re giving advisors a powerful new tool to attract clients and reward them for growing with their firm.”
Promotions & People Moves
Savvy Wealth Hires Anshul Sharma As New CIO
New York City-based Savvy Wealth appoints Anshul Sharma as CIO. Sharma will develop Savvy’s “first institutional-grade CIO office” to support its advisors with portfolio strategies, model portfolios and expanded access to alternative investments, the firm said. Sharma brings more than 25 years of industry experience, including senior roles at Bank of America, U.S. Trust and Merrill Lynch.
Savvy’s advisor offerings include direct indexed portfolios, alts, 401(k) account management, estate plan modeling and tax optimization. The firm has more than $3 billion in AUM and recently raised $72 million in a Series B funding round.
“The chance to define and build a CIO office at a high-growth, tech-native RIA like Savvy is the opportunity of a lifetime,” said Sharma. “Savvy’s modern platform—free of legacy systems and engineered to shape the future of wealth management—creates a rare opportunity to reimagine how advisors deliver value.”
Big Bank News
RBC Hires $1 Billion Financial Advisor From J.P. Morgan
RBC Wealth Management recruits Kevin Carey as Managing Director and Financial Advisor in New York City. Carey joins RBC from J.P. Morgan, where he oversaw nearly $1 billion in client assets.
Carey brings more than 27 years of financial services experience, including fixed income, banking and wealth management. “We are continuing to attract the very best advisors to RBC Wealth Management as well as the New York City market,” said John Moran, New York Metro Complex Director at RBC. RBC serves high net worth clients at its 194 offices in 42 states.
“RBC Wealth Management has a long-standing reputation for putting the needs of clients first,” said Carey. “I was impressed by the firm’s unique culture, resources to serve high-net-worth and ultra-high-net worth clients and the firm's collaborative approach.”
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