This edition of the Deals & Recruiting Roundup covers Mercer acquiring Full Sail Capital, Arax buying Schechter, Sammons purchasing Wealthcare, Coldstream merging with Cable Hill, Mariner acquiring Taurus, EP buying Buffington Mohr McNeal, Perigon onboarding Jeremy Kovacs, Nordwand Capital recruiting Douglas DeLong, Caprock appointing Vivek Jindal as Chief Investment Officer, John Wernz joining Mission as Partner and Strategic Advisor, Larry Restieri becoming CEO of Hightower and CAPTRUST naming Mike Wunderli as Head of M&A.
Larry's Take
M&A surged forward this week, with several multi-billion dollar transactions announced by Mercer, Arax, Sammons, Coldstream and Mariner. With only a few weeks to go, we may witness a surge forward in second quarter M&A, which would not surprise anyone. While most of the M&A in our industry features a buyer that is either a private equity firm or backed by one, Coldstream stands out with a different model, which they have consistently applied over the years. Eschewing private equity, they instead grow by promoting a more egalitarian employee ownership approach.While the typical private equity-backed transaction brings a shot of adrenaline to the seller or investee, Coldstream’s expansion model shows a different path is possible – one more alternative to consider for advisory firms looking to achieve scale. 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
Mercer Buys Second RIA In Oklahoma, With $2 Billion In Assets
Mercer Advisors acquires Full Sail Capital, an Oklahoma City-based RIA managing $2 billion in assets from clients who are primarily high net worth and multigenerational families. The transaction closed in late May and Full Sail will immediately adopt the Mercer brand.
Full Sail represents Mercer’s second acquisition in Oklahoma and expands its presence in Oklahoma and Texas to over $7 billion in assets under management (AUM). Mercer said it operates from over 100 locations. As of March 31, it managed $71 billion in client assets.
“Dozens of firms, among the more than 100 partners that have joined us, have experienced accelerated growth in local markets,” said Martine Lellis, Principal, M&A Partner Development at Mercer. “We see the same potential in Full Sail to extend their presence as a market leader in Oklahoma City.”
Arax Buys $4 Billion RIA Business Of Michigan-Based Schechter
New York City-based Arax Investment Partners acquires Schechter Investment Advisors (SIA), the RIA business of Birmingham, Michigan-based Schechter, a move that expands Arax’s reach in the Midwest. SIA had $4 billion in AUM as of May 28.
At closing, SIA will merge with RIA Arax Advisory Partners, based in Denver, which Arax describes as a “coalition of independent firms” that serve individuals, institutions and high net worth families. Schechter’s Advanced Design Life Insurance business will continue operating as a separate entity. Arax is backed by RedBird Capital Partners.
“The Schechter team is known for thoughtful, multi-generational financial planning and sophisticated investment solutions – exactly the type of partner we are looking for as the Arax platform scales,” said Haig Ariyan, CEO of Arax Investment Partners.
Sammons To Buy $8 Billion RIA Wealthcare From NewSpring
West Des Moines, Iowa-based Sammons Financial Group agrees with NewSpring Holdings to acquire Wealthcare Capital Management, an RIA that manages $8 billion in client assets with offices in Philadelphia and Richmond, Virginia. The deal is expected to close July 1.
Sammons’ last wealth management acquisition was Minneapolis-based NorthRock Partners in fall 2023. Berkshire Global Advisors and Gibson, Dunn & Crutcher represented Sammons, while Republic Capital Group and Blank Rome represented Wealthcare and NewSpring in the deal.
“We are excited by the breadth and scale of services Wealthcare offers,” said Esfand Dinshaw, CEO of Sammons. “We look forward to adding the Wealthcare team and its 60+ employees to Sammons Financial Group as we expand our growth in the independent financial advisor space.”
Coldstream Merges With $2 Billion Cable Hill Partners
Seattle-based RIA Coldstream merges with Cable Hill Partners, a Portland, Oregon-based investment advisory firm managing approximately $2 billion in client assets. The combined firm has approximately $13 billion in total client assets.
Founding Partners Brian Hefele and David Christian, who was also Chief Growth Officer, owned and operated Cable Hill, which provided investment advice to high net worth individuals, trusts, estates, charitable organizations and businesses, as well as retirement plan support. Coldstream expects the merger, which closed June 1, will boost its ability to provide retirement services to institutional clients.
“Cable Hill’s approach is completely complementary to our comprehensive offerings and bringing them aboard advances our strategy to deliver a full range of financial services for individuals and institutions as an independent and employee-owned firm,” said Kevin Fitzwilson, Coldstream’s Managing Shareholder. “I look forward to what we can accomplish together.”
Mariner Acquires Taurus Asset Management, Expands Reach To Athletes
Mariner Wealth Advisors purchases Taurus Asset Management, a New York-based firm with $1.4 billion in assets under advisement. Founded in 2004 by Founder & Managing Principal Brad Peck, Taurus specializes in providing wealth planning and investment management services to professional athletes, both active and retired, along with other high net worth individuals and families.
The deal closed May 31, with Taurus adopting Mariner’s brand. Houlihan Lokey was the exclusive financial advisor to Taurus. In January, Mariner, based in Overland Park, Kansas, bought Cardinal Investment Services, a deal that boosted Mariner’s assets under advisement to $550 billion as of the first quarter.
“Taurus Asset Management’s deep bench of experience, particularly in working with high-profile clients and professional athletes, adds a new dimension to our capabilities,” said Marty Bicknell, CEO and President of Mariner. “Our firm will benefit from Brad’s long-standing relationships and unique perspective.”
EP Wealth Advisors Purchases Buffington Mohr McNeal
EP Wealth Advisors acquires Buffington Mohr McNeal (BMM), a deal that marks EP’s expansion into Idaho and adds nearly $900 million in AUM. BMM, based in Boise, was founded by Dean Buffington, Bruce Mohr and Carey McNeal in 1998. Eleven BMM employees, including McNeal and Mohr, will join EP. Buffington passed away in 2020.
Hue Partners was the exclusive financial advisor to BMM for the transaction, the sixth this year for EP. Headquartered in Torrance, California, EP operates 53 offices across 18 states and manages over $32.6 billion in assets as of March 31.
“When EP Wealth establishes a new region, the most important criterion is to partner with entrepreneurs who share our client-centric, talent-based mindset,” said EP Wealth CEO, Ryan Parker. “For nearly 30 years, BMM has put their clients’ needs first and created a culture that rewards long-term career development. As their team joins our nationwide family, we will build on that legacy to create even more successes in the years ahead.”
Advisor Transactions
Perigon Onboards Ex-Merrill Lynch Advisor
Perigon Wealth Management in San Francisco recruits Jeremy Kovacs, who manages $300 million in client assets. With over two decades of experience, Kovacs’ practice focuses on multi-generational clients. Based in Orange County, California, he was a Founding Partner at Brunwin, Sierznat & Kovacs at Merrill Lynch Private Wealth and previously worked at BNY Mellon Wealth Management and Wells Fargo.
Backed by Constellation Wealth Capital, Perigon managed $8.7 billion in client assets as of Dec. 31. In April, the firm appointed four 1099 advisors to partnership through its Path to Partnership Program.
“Jeremy’s history of success within the middle market business community enhances our ability to serve this critical segment of the American economy,” said Arthur Ambarik, Perigon’s CEO. “As we continue to navigate a period of financial and economic uncertainty, Jeremy's relationships with leaders in this space and his proven ability to serve the complex needs of business owners and their families will prove to be an incredible asset for Perigon.”
Nordwand Capital Adds Advisor Douglas DeLong
Nordwand Capital, based in Randor, Pennsylvania, recruits Douglas DeLong as Managing Director and Wealth Advisor. He previously worked at Fiduciary Trust, where he managed $700 million in client assets and focused on multigenerational clients. DeLong will be based at Nordwand’s Randor headquarters.
Nordwand, which manages $4 billion in client assets, focuses on providing investment management and estate planning services for high net worth clients. The RIA and multifamily office is affiliated with Dynasty Financial Partners.
"Doug has built a reputation for delivering sophisticated investment and estate planning advice with a high level of personal attention," said Jim Martin, CEO of Nordwand Capital. Gordon Ross, Chief Client Officer at Dynasty, said, “We’re honored to support Nordwand Capital as they expand their team with exceptional talent like Doug DeLong.”
Promotions & People Moves
Caprock Appoints Vivek Jindal As CIO
The Caprock Group names Vivek Jindal as Chief Investment Officer. He will oversee Caprock’s portfolio construction with attention to public and private markets and identify investing opportunities across all asset classes.
Jindal was previously CIO at KORE Private Wealth. He also held top positions at the Charles and Lynn Schusterman family philanthropies, the Schusterman Family Interests, The Blackstone Group and Corbin Capital Partners. Based in Boise, Caprock manages $13 billion in assets under advisement.
“As we embark on Caprock’s next chapter of growth, Vivek’s proven leadership and expertise will elevate our investment platform, ensuring we continue to deliver exceptional opportunities and value to our clients,” said Gregory Brown, Caprock’s Co-CEO.
John Wernz Joins Mission Wealth
Mission Wealth appoints John Wernz as Partner and Strategic Advisor in which he will help guide the RIA’s continued growth and organizational development. An Entrepreneur-in-Residence at private equity firm Great Hill Partners, Wernz previously worked for nearly 13 years at Wealth Enhancement Group in Minneapolis where he served in various roles culminating in Chief Marketing & Growth Officer.
Based in Santa Barbara, California, Mission oversees more than $10.6 billion in AUM. Great Hill has raised more than $12 billion of commitments and invested in over 100 companies. Last month, it acquired a minority stake in Mission.
“I’m thrilled about the partnership between Mission Wealth and Great Hill Partners, and I look forward to supporting Mission’s impressive track record of growth and innovation,” Wernz said. “The team at Mission is one of the very best I have encountered in the RIA industry. Mission has been a leader in both Organic and Inorganic growth, and I am Iooking forward to helping them continue that level of excellence as they grow.”
Larry Restieri Steps Into Bob Oros’ Shoes At Hightower
Larry Restieri officially takes the reins as the CEO of Hightower, where he succeeds Bob Oros, the firm’s CEO since 2019, a move announced in February. Prior to the move, Restieri worked over 25 years at Goldman Sachs, including seven years as CEO of its Ayco business, which specializes in workplace financial planning and private wealth advisory services.
Oros will remain a member of the firm’s board, which Restieri has also joined. The Chicago-based RIA has 144 practices in 34 states and the District of Columbia, and oversaw $308.2 billion in AUM as of March 31.
“Hightower is positioned for transformational growth,” Restieri said. “We have a tremendous community of advisors, and I’m committed to working with our talented advisory practices to win together as a team. The result of a valuable experience for our clients and advisors is increased opportunities for growth, both organic and inorganic.”
CAPTRUST Names Mike Wunderli As Head Of M&A
CAPTRUST Financial Advisors appoints Mike Wunderli as Head of Mergers and Acquisitions, in which he will lead the firm’s inorganic growth strategy. Wunderli most recently oversaw M&A at boutique investment bank ECHELON Partners, where he worked since 2016. He also spent 12 years at Lehman Brothers and UBS.
CAPTRUST serves individuals, endowments, foundations, and nonprofits, as well as retirement plan sponsors and their employees. The firm also provides concierge services for ultra-high net worth clients, as well as outsourced chief investment officer services.
“The industry is at an inflection point,” said CAPTRUST CEO Fielding Miller. “We wanted someone who was ready to face those challenges with energy and enthusiasm. Mike is ready. He fits CAPTRUST, and he fits our strategic ambitions for the future.”
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