This edition of the Deals & Recruiting Roundup covers TPG investing in Creative Planning and Homrich Berg, Focus agreeing for Fort Pitt to join Kovitz, WEG acquiring FinTrust, Mercer acquiring Kiely Wealth and Kades & Cheifetz, Forsyth investing in Matter Family Office, Beacon Pointe acquiring Bridge Advisory and Charleston Investment Advisors, Credent acquiring Clarify, Waverly acquiring CenterPoint, LPL removing Dan Arnold and appointing Rich Steinmeier as Interim CEO, Schwab CEO Walt Bettinger retiring and Rick Wurster taking the helm, WCG hiring Talley Léger as Chief Market Strategist, and Bank of America and Wells Fargo launching financial awareness initiatives for young people.
Larry’s Take
The industry moves of the past week have been momentous, to put it mildly. More than a dozen firms participated in M&A deals, and two of the most prominent CEOs in the independent wealth management space were revealed to be exiting firms that reached new heights during their tenures. Rather than fixate on any one event, let us consider the bigger picture.
Last week’s burst of M&A activity demonstrates the enormous financial incentives that RIA owners of all sizes have to either scale up, or sell to firms that are in the process of doing so. It is not exactly difficult for well-managed small and midsized RIAs to stay in business, given the stickiness of long-term client relationships. But the reasons for many such owners to retain full control, instead of seeking out deal partners, are increasingly subjective instead of objective.
Change of management is inevitable. It is only a matter of when, why and how. That also applies to CEOs of large, publicly traded financial services companies. Whether they leave successfully on their own terms, or are told to go amid negative circumstances, the firm owes it to the professionals and clients who remain to provide a strategy for renewed growth.
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. TPG Invests In Creative Planning And Homrich Berg
San Francisco-based private equity firm TPG made a substantial minority investment through its TPG Capital division in Overland Park, Kansas-based Creative Planning, whose RIA and its affiliates had over $375 billion in combined assets as of Dec. 31. Creative Planning CEO and President Peter Mallouk holds a majority stake. General Atlantic also has been a minority investor in Creative Planning since 2020.
TPG also made a strategic minority investment, through middle market and growth equity platform TPG Growth, in Atlanta-based RIA Homrich Berg (HB), which has $18 billion in assets under management (AUM). New Mountain Capital also still holds a minority stake in HB, which it took in 2021. HB’s management team will remain the largest shareholder group.
“As clients are increasingly seeking out holistic wealth management solutions, Peter Mallouk and Creative Planning have built an unparalleled business in the space with a track record of success by offering services that address clients’ unique needs,” said Peter McGoohan, Partner at TPG. “We look forward to working closely with Peter and Creative’s impressive management team and advisors to invest behind the company’s continued growth and expansion.”
2. Focus Agrees For $5.9 Billion Fort Pitt To Merge Into Kovitz
Focus Financial Partners agreed for Pittsburgh-based Fort Pitt Capital Group to formally join the Focus subsidiary Kovitz Investment Group Partners. Fort Pitt joined Focus as a partner firm in 2015. The deal is expected to close in the fourth quarter. Fort Pitt had over $5.9 billion in AUM as of June.
In July, Focus agreed for Northbrook, Illinois-based partner firm Relative Value Partners Group (RVP) to join Chicago-based Kovitz. The transaction closed in the third quarter, and the combined firm was expected to manage over $24 billion in client assets measured as of May 31. In September, Focus agreed for Custom Portfolio Group (CPG) to formally join fellow Denver-area Focus partner firm Transform Wealth.
“Fort Pitt and Kovitz are two firms that have long, proven track records of client service excellence,” said Michael Nathanson, CEO of Focus. “We are excited about what their teams will accomplish together as they expand Kovitz’s presence nationally and into the Pennsylvania wealth market.”
3. Wealth Enhancement Group Acquires $2.4 Billion FinTrust Capital Advisors
Wealth Enhancement Group (WEG) acquired Greenville, South Carolina-based FinTrust Capital Advisors, a hybrid RIA that has nearly $2.4 billion in assets. Chief Investment Officer Allen Gillespie leads FinTrust. It has 14 advisors and 13 support staff, with additional offices in Anderson, South Carolina, and Athens, Georgia.
FinTrust Capital Advisors provides financial planning, investment management and retirement plan services to clients including business owners, professionals and high net worth families. Park Sutton Advisors, a Waller Helms company, was its exclusive financial advisor in the transaction. WEG has over $94.7 billion in assets.
“It is exciting to expand our presence in the Southeast by joining forces with FinTrust Capital Advisors,” said Jeff Dekko, CEO of Wealth Enhancement Group. “Allen and his knowledgeable team are experienced at their craft. They create customized financial solutions tailored to their clients’ unique needs.”
4. Mercer Acquires $523 Million Kiely Wealth, $440 Million Kades & Cheifetz
Denver-based Mercer Global Advisors acquired two RIAs – Oak Ridge, North Carolina-based Kiely Wealth Advisory Group (KWAG), which has $523 million in AUM and was founded by President and CEO Joe Kiely; and Berwyn, Pennsylvania-based Kades & Cheifetz, which has $440 million in assets and is led by Partners Howard Kades and Stephen Cheifetz.
Cambridge International Partners was the exclusive financial advisor to KWAG and Colchester Partners was the exclusive advisor to Kades & Cheifetz in the transactions. Mercer has $63 billion in client assets across more than 1,150 employees and over 90 locations. It is majority owned by Oak Hill Capital, Genstar Capital and Altas Partners.
“When we met Howard and Steve, their unwavering commitment to always putting clients first was evident. Kades & Cheifetz is an exemplary and like-minded firm,” said Dave Welling, CEO of Mercer. “With the union of our firms, the clients of KWAG will gain access to our suite of wealth solutions, including estate, tax and insurance planning. Together, we will enhance the financial well-being of our shared clients.”
5. BW Forsyth Partners Invests In $3.4 Billion Matter Family Office
BW Forsyth Partners made a strategic investment in fellow St. Louis-based firm Matter Family Office, which had $3.4 billion in AUM as of its March SEC ADV filing. Matter is the seventh Forsyth portfolio company.
Matter, which was founded in 1990, is a private wealth management firm and multi-family office serving high net worth families and individuals. Forsyth’s investment will fund Matter’s organic growth initiatives, acquisitions and cultural programs. Forsyth’s parent company, Barry-Wehmiller, is a global provider of industrial equipment and engineering solutions.
“This partnership represents a significant opportunity for both firms to leverage their combined expertise and resources to develop a higher impact family office for individuals, businesses and communities touched by the families served by Matter,” said Drew Frailey, Partner at BW Forsyth Partners.
6. Beacon Pointe Acquires Bridge Advisory, Charleston Investment Advisors
Beacon Pointe Advisors acquired Pasadena and Newport Beach, California-based Bridge Advisory, which oversees approximately $460 million in assets, and Mt. Pleasant, South Carolina-based Charleston Investment Advisors, which manages $140 million in assets. Beacon Pointe’s total assets under advisement are nearly $37 billion.
Dave Penniall and Vanessa Burnett lead the 10-person team at Bridge Advisory. Hue Partners advised Bridge Advisory on the transaction, which closed on Sept. 30. Stephanie Mackara founded Charleston Investment Advisors. That acquisition is expected to close in the fourth quarter. Beacon Pointe has conducted four RIA transactions in 2024.
“These integrations feel effortless, rooted in our shared values and vision,” said Shannon Eusey, CEO and Founder of Beacon Pointe. “The Bridge Advisory team’s local knowledge, strong client presence, athlete-driven discipline, and Charleston Investment Advisors’ women-led governance and personalized client-service process make this move a natural progression.”
7. Credent Acquires Cincinnati-Based Clarify, Surpasses $3 Billion In AUM
Auburn, Indiana-based Credent Wealth Management acquired Cincinnati-based Clarify Wealth Management, which has $450 million in assets and additional locations in Columbus, Ohio, and Lafayette, Indiana. As a result, Credent’s AUM now surpasses $3 billion.
The deal provides a future succession plan for Clarify’s founding partners, CEO James Brandenburgh, Chief Financial Officer Aubrey Ramey and Chief Investment Officer Brad Clark. Clarify’s next generation of advisors also will join Credent as partners. This is Credent’s 13th acquisition in six years and its first since Crestline Investors made a strategic investment earlier this year.
“We’re thrilled to welcome the talented team at Clarify Wealth to the Credent family,” said David Hefty, CEO of Credent Wealth Management. “This partnership isn’t just about business; it’s about building relationships and enhancing the experience we provide to our clients in Cincinnati and beyond.”
8. Waverly Acquires $288 Million CenterPoint In Indiana
Birmingham, Alabama-based Waverly Advisors acquired Zionsville, Indiana-based CenterPoint Wealth Management, which had $288 million in AUM as of its April SEC ADV filing. Waverly manages approximately $13.2 billion in AUM. Brian Brunner founded CenterPoint in 2001. Its services range from individual retirement portfolios to multi-million dollar family trusts.
The deal is Waverly’s 16th since accepting an equity investment in December 2021 from Wealth Partners Capital Group (WPCG) and HGGC’s Aspire Holdings platform. Waverly’s team of more than 180 professionals serves high net worth individuals, corporate retirement plans and institutional clients, with 22 offices across the U.S.
“This merger aligns well with our firm’s strategy of partnering with culture-focused RIAs,” said Justin Russell, President of Waverly. “While we continue to grow our presence in Indiana, we also gain expertise and experience from our new team members.”
Promotions & People Moves
9. LPL Removes Dan Arnold, Appoints Rich Steinmeier As Interim CEO
LPL Financial removed Dan Arnold as President and CEO, appointing Chief Growth Officer Rich Steinmeier as Interim CEO. Arnold had been President since 2015 and CEO since 2017. Steinmeier joined LPL in 2018. Previously, he was a wealth management executive at UBS and Merrill Lynch. Earlier in his career, Steinmeier worked at McKinsey.
According to a press release, the Board of Directors terminated Arnold for violating LPL’s Code of Conduct regarding statements to employees and a respectful workplace. A special committee of Directors made the recommendation. An outside law firm also conducted an investigation. LPL supports more than 23,000 financial advisors, including those at approximately 1,000 institutions and 580 RIAs nationwide.
“The Board has every confidence in Rich and LPL’s seasoned management team to ensure a smooth and stable transition,” said James Putnam, Chair of the Board of Directors at LPL. “As one of the industry’s largest and fastest growing wealth management firms, LPL’s sole focus remains on ensuring its clients have everything they need to support their continued success.”
10. Schwab CEO Walt Bettinger To Retire, President Rick Wurster To Take Helm
Charles Schwab CEO Walt Bettinger plans to retire, effective Dec. 31. Rick Wurster, who has been President since 2021, will add the CEO role and join the Schwab Board of Directors, effective Jan. 1, 2025. Bettinger, who has been CEO since late 2008, will continue to serve as Executive Co-Chairman of the Board of Directors along with Founder Charles R. Schwab.
During Bettinger’s tenure, client assets grew from $1.14 trillion to $9.74 trillion; the firm’s market capitalization grew from approximately $18 billion to approximately $119 billion; and Schwab acquired and integrated TD Ameritrade. Wurster has worked at Schwab and its subsidiaries since 2016. Before that, he was a Portfolio Manager at Wellington Management for a decade and earlier worked at McKinsey for five years.
“I am honored to succeed Walt as Schwab’s CEO,” Wurster said. “He has led Schwab to record results over the last 16 years and has done so with humility, exceptional character, and a servant mindset. I am fortunate to continue to work with Walt in my new role and am humbled by the confidence that Walt, Chuck, the Schwab Board of Directors, and our dedicated employees have placed in me.”
11. The Wealth Consulting Group Hires Talley Léger As Chief Market Strategist
Las Vegas-based RIA The Wealth Consulting Group (WCG) hired Talley Léger to the newly created role of Chief Market Strategist. He will work closely with Jimmy Lee, CEO of WCG. The firm provides wealth planning, investment management, insurance/risk management, executive benefits, employee benefits and corporate retirement plan services. WCG has $5.4 billion in AUM and $8.2 billion in AUA.
Léger has over 24 years of industry experience. He previously was Managing Director and Senior Equity Strategist at Raymond James, Senior Equity Strategist at Invesco and Founder of Macro Vision Research. Léger also held strategist positions at Barclays Capital, ISI, Merrill Lynch, RBC Capital Markets and Brown Brothers Harriman. He has repeatedly appeared on CNBC and Bloomberg TV.
“Jimmy and I have been strong business partners for years, and this role is a natural fit for me as I transition from the institutional realm to the private client and wealth management space,” Léger said. “I see the RIA channel as a tremendous pocket of opportunity and I’m excited to contribute to the ongoing success and rapid growth of WCG.”
Wirehouse Activity
12. Bank of America, Wells Fargo Target Young Savers
Bank of America and Wells Fargo each launched initiatives designed to increase financial awareness among young people. Bank of America’s SafeBalance Banking for Family Banking allows a parent to open and add a child to an account; give the child access to a physical or digital debit card; daily spending limits, card lock/unlock features and real-time alerts; as well as Better Money Habits educational resources for parents to discuss personal finance with a child.
Wells Fargo launched a content series providing student‑athletes with financial education on money management and maximizing earning potential in line with Name, Image and Likeness (NIL) opportunities. Wells Fargo executives and NIL football players from the University of Georgia, University of Florida and the University of Southern California will participate in episodes that will air on the bank’s and the athletes’ social media accounts.
“For many parents, it can be hard to find the right financial tools and resources that can also instill positive financial habits in their children,” said Mary Hines Droesch, Head of Product for Consumer, Business and Wealth Management Banking and Lending at Bank of America. “Family Banking offers the foundation young people need for managing money, with support for parents seeking to help their children on the path to financial health and independence.”
Chris Latham, Managing Editor at Wealth Solutions Report, can be reached at clatham@wealthsolutionsreport.com.
