This edition of the Deals & Recruiting Roundup covers Rise Growth Partners investing in $10 billion Bleakley Financial Group, CW Advisors acquiring $1.2 billion Agili, LPL onboarding the merging firms Academy Financial and PFG Advisors, Raymond James adding The Perl Group from Morgan Stanley, Stifel recruiting Gasper Investment Consulting Group from Baird, Invest in Others naming 10 advisory firms as Charitable Champions, Todd Mackay becoming President of Cetera Solutions, EP Wealth Advisors appointing Megan Glover as Chief People Officer, Cerity Partners appointing Suk Shah as CFO, the wirehouses releasing second quarter performance reports, RBC Wealth Management adding The Paradigm Group, and U.S. Bank partnering with Edward Jones to provide checking and credit card products.
Larry’s Take
The first minority stake investment by Rise Growth Partners indicates that Joe Duran – who founded United Capital Financial Partners and sold it to Goldman Sachs, which then sold it to Creative Planning – is indeed serious about breaking new ground in wealth management M&A.
At nearly $10 billion in assets, Bleakley Financial Group is a large firm intent on getting bigger through organic and inorganic growth. Having run major advisory firms himself with a keen eye on the bottom line, Duran is one to target profitable businesses with strong fundamentals.
Like many industry onlookers, we are eager (and curious) to see what comes next for Rise Growth. Its focus on taking minority stakes, and its backing by Charlesbank Capital Partners, could enable it to amass a meaningful portfolio quicker than some might expect.
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. Rise Growth Partners Makes Its First RIA Minority Investment
Austin, Texas-based Rise Growth Partners took a strategic minority stake in Bleakley Financial Group, a Fairfield, New Jersey-based wealth management firm that serviced almost $10 billion in advisory assets as of June 30. The transaction represents Rise Growth’s first minority investment since its launch last year. Bleakley, which was founded in 1985, will use the capital for resources to attract growth-focused firms, advisor teams and individual advisors.
In February, Rise Growth announced a $250 million investment commitment from private investment firm Charlesbank Capital Partners to support its efforts to invest in select RIAs. Rise Growth seeks to acquire minority stakes in high-growth RIAs and provide capital, hands-on operational guidance and acquisition expertise to help those RIAs grow. Charlesbank has raised over $18 billion since its founding in 1998.
“Bleakley exemplifies all the essential pillars we seek in firms that we will partner with to build a lighthouse brand in the industry,” said Joe Duran, Managing Partner of Rise Growth. “For one, their experienced and aligned management team has fostered a client-centric culture. In addition, they have developed a platform that empowers advisors to practice at the top of their license and focus on delighting clients. Last but by no means least, Bleakley’s consistent growth, achieved through organic and inorganic strategies, is a testament to the team’s capabilities.”
2. Audax-Backed CW Advisors Acquires $1.2 Billion Agili, Boosting AUM To $10 Billion
Boston-based CW Advisors, acquired Agili, a fee-only firm with $1.2 billion of assets under management (AUM) that provides financial planning, investment strategy and strategic services. Agili, which will adopt the CW Advisors name and brand, has offices in Richmond, Virginia, and Bethlehem, Pennsylvania.
Founded in 1993, Agili serves high net worth individuals and families nationwide through a “Personal CFO” offering. Michael Joyce, President of Agili, will become Executive Managing Director, Mid-Atlantic Leader for CW Advisors. CW Advisors has 11 offices across the country, 113 employees and over $10 billion of AUM. This is the firm’s fourth and largest deal since receiving an investment from Audax Private Equity in June 2023.
“We are excited for this partnership and to welcome Agili’s clients and team members to CW Advisors,” said Paul Lonergan, CEO of CW Advisors. “As one of the nation’s earliest fee-only financial planning firms, Agili is a pioneer in this sector. The team’s responsive and innovative service to clients makes them an ideal fit. Agili brings impressive infrastructure and resources that can benefit CW Advisors’ larger organization and our clients.”
3. LPL Onboards $4 Billion Academy Financial And PFG Advisors, Which Will Merge
LPL Financial recruited more than 30 financial advisors with Lutherville, Maryland-based Academy Financial and Berwyn, Pennsylvania-based PFG Advisors, representing approximately $4 billion in advisory, brokerage and retirement plan assets. The firms will merge and operate under the Academy brand.
Harry Horn, who founded Academy Financial in 1992, continues to serve as a consultant and Partner Emeritus. The team includes Partners Brent Kvech, T. Joseph Barger, Michael Leonard and Michael McFeeley. Tyler McCraw and Steve Morris lead PFG Advisors. They joined from Lincoln Financial’s wealth management business, which is now part of Osaic.
“We welcome Academy Financial and PFG Advisors to LPL. At LPL, our vision is to be the best wealth management firm to help advisors maximize their success,” said Scott Posner, Executive Vice President, Business Development at LPL. “We look forward to supporting Academy Financial and PFG Advisors as they combine efforts and advance their practices to the next level.”
Advisor Transactions
4. Raymond James Adds $360 Million Team From Morgan Stanley
Raymond James brought on financial advisors Gary Perl and Katie Janda, along with practice Business Manager Sharon Brown and Client Service Associate Elisabeth Perl, to the firm’s employee advisor channel. Ponte Vedra Beach, Florida, and Fort Collins, Colorado-based The Perl Group of Raymond James oversaw more than $360 million in client assets at Morgan Stanley.
Gary Perl has 24 years of wealth management experience. He spent 15 years as an advisor at Morgan Stanley, and before that nine years at Wells Fargo and A.G. Edwards, which Wells acquired. Janda has 18 years of financial services experience, including four years of wealth management experience. She has been a financial advisor since January 2023.
“The primary reason we chose Raymond James is for its long-standing, client-centered focus that respects and emphasizes the relationship between advisors and their clients,” Gary Perl said. “The firm’s commitment to client service has set an industry standard that aligns perfectly with our values and approach.”
5. Stifel Brings On Gasper Investment Consulting Group In Kentucky
St. Louis-based Stifel Financial recruited Bowling Green, Kentucky-based Gasper Investment Consulting Group from Baird. The team consists of Drew Richey, Senior Vice President/Investments; Joshua Marson, First Vice President/Investments; Andrew Boyles, Vice President/Investments; and Client Service Associates Brooke Schakat and Savannah York.
Richey has 19 years of industry experience. Before working at Baird, he was associated with Wells Fargo Advisors from 2009 to 2013 and Hilliard Lyons from 2013 to 2019. Marson has 12 years of industry experience, having worked at the same firms as Richey. Boyles has seven years of industry experience, having worked at Baird and Hilliard Lyons.
“Stifel provides our team with unparalleled resources to serve our clients while giving us direct access to key decision makers throughout the organization. We’re confident this partnership will reap benefits for our clients, our team, and grow Stifel’s presence within our community for years to come.” Richey, Marson and Boyles were quoted as saying on Stifel’s LinkedIn page.
Strategic Partnerships
6. Invest In Others Names 10 Firms To Charitable Champions List
The Invest in Others Charitable Foundation named 10 financial advisory firms as 2024 Charitable Champions for going above and beyond in giving back to their communities.
The 2024 Charitable Champions are Cain Watters & Associates of Frisco, Texas; Cassaday & Co. of McLean, Virginia; Creative Planning of Overland Park, Kansas; DSF Wealth Management Group of Bridgeville, Pennsylvania; Hammond Iles Wealth Advisors of Wethersfield, Connecticut; IronBridge Wealth Counsel of Austin, Texas; North Star Resource Group of Minneapolis; Parcion Private Wealth of Bellevue, Washington; Pickler Wealth Advisors of Collierville, Tennessee; and Savage and Associates of Maumee, Ohio.
“This year’s Charitable Champions serve as examples to us all on how to create a company culture that emphasizes giving back, and volunteering time and effort to improve their communities,” said R. Barkley Payne, Executive Director of Invest in Others. “We are proud to be able to bring peer recognition to the causes that our Charitable Champions support, and reward their advisors and employees for the good they have done.”
Promotions & People Moves
7. Avantax President Todd Mackay Becomes President Of Cetera Solutions
Cetera Financial Group appointed Avantax President Todd Mackay as President of Cetera Solutions. He will drive end-to-end platform strategy and lead advice delivery; steer growth across business lines for all digital products, investment products and services for Cetera advisors and end-clients; and serve as a member of Cetera’s executive leadership team.
Mackay spent more than 20 years at Avantax. Andy Watts takes over Mackay’s former role as Cetera’s Tax Channel Leader, with oversight of Avantax and Cetera Financial Specialists, a combined community of more than 4,000 independent financial professionals. Ron Krueger will remain as the leader of the Cetera Financial Specialists Community.
“It’s been a true honor leading Avantax, and I’m incredibly proud of the growth and accomplishments the Avantax Community achieved thanks to our amazing Financial Professionals and our devoted Home Office team,” Mackay said. “I will continue working with Avantax in my new Cetera role, which is important to me because I value the many relationships created over the years. Our Avantax and CFS Financial Professionals, accounting firms and Home Office staff are in excellent hands with Andy Watts as their leader.”
8. EP Wealth Advisors Appoints Megan Glover As Chief People Officer, Overseeing HR
Torrance, California-based EP Wealth Advisors appointed Megan Glover to the executive team as the firm’s first Chief People Officer. She has over 20 years of experience leading human resources strategy, mainly in financial services.
Most recently, Glover served as Managing Director and Chief Human Resources Officer for Los Angeles-based SMBC MANUBANK, which has over 800 employees. Before that, she held leadership positions at PIMCO, Macquarie and Moelis. As of July 31, EP Wealth manages over $26.2 billion in assets.
“EP Wealth has enjoyed great success and is driven by a unique and inspiring team. The opportunity to help ensure people are the priority as the firm continues to expand across the country is exciting,” Glover said. “Giving people a seat at the table as objectives, initiatives and investments are determined is a perfect example of why this firm has thrived, and I can’t wait to help build the next chapters.”
9. Cerity Partners Appoints Suk Shah As CFO
New York-based Cerity Partners appointed Suk Shah as Chief Financial Officer. Shah has 22 years of financial experience, over a decade of which as a CFO. Most recently, he was CFO of Monarch Collective, a consortium of vacation rental companies. Before that, he was CFO at the mortgage lender Guaranteed Rate; the fintech company Avant; and Commercial Banking, North America, at HSBC.
Prior to becoming a CFO, Shah worked at GE for eight years. He began in the Financial Management Program, with a focus on GE Healthcare. Then he joined the Corporate Audit Staff, focusing on GE Capital, GE Aviation and GE Energy. Later, Shah became VP, Financial Planning & Analysis, for GE Capital.
In July, Cerity Partners announced the acquisition of Denver-based Keating Wealth Management, which had over $200 million in AUM as of its May SEC ADV filing. In April, Cerity announced it would manage about $100 billion in client assets after acquiring and merging with Denver-based Agility, the investment outsourcing business of investment bank Perella Weinberg Partners.
Wirehouse Activity
10. UBS Reports Adding $27 Billion In Wealth Assets In Q2, As Advisor Headcount Falls
UBS was the last of the wirehouses to report on its second quarter performance. Its Global Wealth Management (GWM) division added $27 billion in new client assets during the quarter. As of June 30, there were 10,068 full-time advisors at UBS, down from 10,338 as of March 31 and 11,065 as of June 30, 2023.
Robert Karofsky, a member of the UBS Group Executive Board (the GEB) since 2018 and President Investment Bank until July 1, became Co-President Global Wealth Management and President UBS Americas. Iqbal Khan, a member of the GEB since 2019 and President Global Wealth Management until July 1, became Co-President Global Wealth Management alongside Karofsky. As of Sept. 1, Khan also will also become President UBS Asia Pacific.
For the second quarter, Morgan Stanley reported that its Wealth Management division added net new assets of $36 billion. Bank of America reported that Merrill Lynch Wealth Management added approximately 5,500 net new households and had AUM balances of $1.4 trillion, the same asset level as the previous quarter. Wells Fargo reported that its Wealth and Investment Management division added $14 billion in client assets.
11. RBC Adds $693 Million Team In Cincinnati
RBC Wealth Management opened a new branch in Cincinnati by recruiting The Paradigm Group from Morgan Stanley. Led by Kyle McLaughlin, Managing Director - Private Wealth Advisor, the team also includes Joseph Goetzinger, SVP - Financial Advisor; Robert Hill, SVP - Financial Advisor, Corporate Retirement Director; Terry Regan, First Vice President - Financial Advisor; Brandon Vornhagen, Financial Advisor; and four associates.
With approximately $693 million in assets, the team focuses on ultra-high and high net worth business owners, executives and families. It has experience in retirement and workplace solutions, wealth planning, executive compensation and closely held business planning. The Cincinnati office will be RBC’s fourth Ohio office, after Columbus, Cleveland and Toledo.
McLaughlin said, “RBC Wealth Management’s client-centric approach coupled with its global heft, financial stability, lending capabilities and focus on asset and liability management make it a perfect fit for our clients. Our whole team jumped at the chance to bring the RBC brand and its commitment to investing in the communities where we live and work to Cincinnati. It’s not just good for our clients – it’s good for our city as well.”
12. U.S. Bank Partners With Edward Jones For Checking And Credit Cards
U.S. Bank partnered with Edward Jones to enable Edward Jones financial advisors to provide their U.S. clients with U.S. Bank co-branded checking and credit card products beginning in late 2025. Edward Jones has over 19,000 financial advisors with $2 trillion in assets in North America.
Since 2012, U.S. Bank and Edward Jones have had a card-issuing relationship. In June, U.S. Bank partnered with Greenlight to provide its debit card and money app for families with teens and children. In 2020, U.S. Bank allied with State Farm to assume the insurance provider’s deposit and credit card account products.
Arijit Roy, Head of Consumer and Business Banking Products at U.S. Bank, said, “U.S. Bank and Edward Jones share a mission to improve the financial lives of our clients. Working together, we look forward to helping more clients achieve their financial goals with simple and easy to use banking solutions.”
Chris Latham, Managing Editor at Wealth Solutions Report, can be reached at clatham@wealthsolutionsreport.com.
