This edition of the Deals & Recruiting Roundup covers Wealth Enhancement’s acquisition of XO Wealth Management, Mercer’s two purchases, DeVoe’s report of record breaking deal activity in Q1, LPL’s acquisition of Commonwealth, Cerity’s purchase of West Coast Financial, Advisor Growth Strategies’ M&A report, Kestra’s recruitment of Amy Dunham, MAI onboarding advisors from Constellation Sports Council, Equitable’s recruitment of Shebna Olsen-Shillibeer, NewEdge nabbing an advisor team from Merrill Lynch, Wealth.com’s partnership with Cetera and Osaic’s appointment of Saumya Bhavsar as General Counsel.
Larry’s Take
The massive story this week is LPL’s acquisition of Commonwealth. This is not a separate-under-one-umbrella type of acquisition: The firms clearly indicated that Commonwealth will be integrating into LPL by 2026, which raises questions about what the thousands of affected advisors think about it.
Unaddressed speculation leads to more uncertainty, and advisors like certainty in their home offices as much as they do in the markets. LPL and Commonwealth have done the right thing getting ahead of the questions by reassuring advisors – especially Commonwealth affiliates – that this move heralds only good things for everyone involved.
The leadership of Rich Steinmeyer and Wayne Bloom and the sincerity of their follow-though will be key to them pulling this off with low attrition. If they keep their ears open to their advisors during the transition period and execute this high-profile acquisition and integration well, they may actually generate the reverse of attrition and attract new advisors. Time will tell.
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
Wealth Enhancement Adds $516 Million Dallas RIA
Wealth Enhancement buys XO Wealth Management, an independent RIA in Dallas that includes a team of three financial advisors and three support members overseeing more than $516 million in client assets as of Sept. 29.
The addition of XO gives Wealth Enhancement its 11th location in Texas and increases the total client assets of the firm and its RIA, Wealth Enhancement Advisory Services, to over $107.5 billion, including $4 billion of brokerage assets held at LPL Financial as of Feb. 28, Wealth Enhancement said. The firm has 146 offices.
The XO team has “built an impressive practice, and we look forward to the mutual collaboration to come,” said Jim Cahn, Chief Strategy Officer at Wealth Enhancement. “We’re excited to expand our footprint in Texas, one of the nation’s fastest growing markets.”
Mercer Enters Kentucky And Expands In Tennessee With Latest Acquisitions
Mercer Global Advisors, a subsidiary of Mercer Advisors, announces the acquisitions of RIAs D. Scott Neal (DSN) with offices in Lexington and Louisville, Kentucky, and Vishria Bird Financial Group in Memphis, Tennessee. The acquisitions will add a total of almost $900 million in assets to the $71 billion in client assets that Mercer said it had as of Jan. 31.
The addition of DSN and its 10-person team will bring more than $300 million in assets under management (AUM) to Denver-based Mercer and enable it to enter the Kentucky market, Mercer said. The acquisition of Vishria Bird adds $583 million in client assets and further expands Mercer’s footprint in Tennessee. Mercer has existing offices in the Nashville area.
“Mercer Advisors is a firm whose client-first values and fiduciary approach closely align with ours,” said Scott Neal, President and CEO of D. Scott Neal. “This partnership allows us to expand our capabilities, provide a more comprehensive wealth management offering and tap into the growth opportunities available in Kentucky.”
RIA M&A Activity Breaks Record In The First Quarter
Demand for financial advisors continues to soar as the number of deals in the first three months of the year hit 75 transactions, among the highest quarterly numbers in industry history, and the highest for Q1, according to investment bank and consulting firm DeVoe & Company. Private equity and private equity-backed buyers accounted for 72% of the first quarter’s transactions.
Last year saw 272 transactions, the highest annual total ever recorded. Among the top reasons driving advisors to sell are growth, liquidity and succession planning. Other reasons include the opportunity to join larger firms that offer scale, technology and operational support.
“RIA M&A is red hot right now,” said David DeVoe, Founder and CEO of DeVoe & Company. “Recent research shows that growth is the #1 driver for sellers, which seems counterintuitive. However, more firms are giving up on organic growth and are turning to those that have seemingly solved the organic growth puzzle.”
LPL To Buy Commonwealth For $2.7 Billion
LPL Financial will acquire Waltham, Massachusetts-based rival Commonwealth Financial Network for about $2.7 billion. The deal is expected to close in the second half of this year, with complete conversion of Commonwealth to the LPL platform in mid-2026.
Commonwealth serves about 2,900 financial advisors and has about $285 billion of combined advisory and brokerage assets. LPL currently supports nearly 29,000 financial advisors and the wealth management practices of about 1,200 financial institutions, providing service and custody for about $1.7 trillion in combined advisory and brokerage assets.
“There are many parallels in how our two firms have come to market and developed over time, pioneering the movement to independence with a common orientation to put advisors first,” said Rich Steinmeier, LPL CEO. “The opportunity to bring them together feels incredibly powerful, not just for LPL and Commonwealth, but for advisors on both sides and the collective 7 million American families we serve.”
Cerity Partners Merges With West Coast Financial
Independent wealth management firm Cerity Partners merges with West Coast Financial, headquartered in Santa Barbara, California. The deal will allow New York City-based Cerity to further expand into wealth transfer, retirement, tax and charitable planning and accelerate its alternative investment offerings, including real estate. West Coast’s March 20 Form ADV says it has $1.8 billion in assets.
West Coast will operate under the Cerity name, and expands Cerity’s private clientele offerings in Southern California. Houlihan Lokey served as the exclusive financial advisor to West Coast Financial, and Reicker, Pfau, Pyle & McRoy provided legal counsel.
“The West Coast Financial team brings a wealth of experience and a client-first mindset that aligns perfectly with our values,” said Claire O’Keefe, Partner and Head of Partner Development at Cerity Partners. “By combining our resources and expertise, we are better positioned to meet the evolving needs of clients across Southern California and beyond.”
Advisor Growth Strategies: Hard To Stand Out In Crowded M&A Market
After a record-breaking year for RIA deal volume that “felt like high tide for M&A,” consultancy Advisor Growth Strategies (AGS) predicts in a new report that “the stage is set for what looks to be a busy 2025.” Citing Fidelity Investments data, AGS said there were 239 transactions in 2024 and a record-setting median valuation of 11x.
Although the new record for median valuations signals a high tide, it’s not lifting all boats now, because the market is more crowded, increasing the difficulty for buyers and sellers to stand out, AGS Partner Brandon Kawal told WSR.
“The critical message for firms looking to build the next platform or firms preparing to go to market is to focus on true business building.” Kawal said. According to Kawal, there is “newer interest in the sub $1 billion AUM range, driving up competition for ‘smaller’ firms.”
Advisor Transactions
Kestra Private Wealth Recruits Advisor Amy Dunham
Kestra Private Wealth Services, a subsidiary of Kestra Financial, recruits Amy Dunham and her team to join the investment advisory firm through its affiliate, Inspired Wealth Planning. Dunham will form Inspired’s Griffin, Georgia, office, along with long-time colleagues Rhonda Harwell, Director of Operations, and Natalie Edwards, Director of Client Relations.
Dunham, who specializes in retirement planning, multi-generational wealth transfer and community-based financial education, oversees $235 million in client AUM. With this recruitment, Inspired has five offices in Georgia: Cordele, Griffin, LaGrange, Perry and Waycross.
“I’m thrilled to have found a new home for myself and my colleagues with Inspired Wealth Planning and the Kestra Private Wealth Services family,” said Dunham. “I’m excited to capitalize on technology improvements that will benefit my longstanding client-centric approach to financial planning strategies.”
MAI Capital Management Nabs Advisors From Constellation Sports Council
Seeking to boost its business of advising professional athletes, MAI Capital Management lands two advisors from Constellation Sports Council. Based in Cincinnati, CSC President and Cofounder Jon Hayes, and his colleague Tim Hightower, will join MAI as Senior Wealth Advisor, Managing Director and Wealth Specialist, Senior Associate, respectively.
They will help strengthen MAI’s services to sports professionals. The company advises 16 hall of famers (as of Dec. 31), executives and clients across 13 professional sports leagues, and more than 100 first-round picks. Founded in 1973, Cleveland-based MAI has 31 offices and, as of Dec. 31, $32.2 billion in assets.
“Our focus remains on leveraging both strategic acquisitions and organic developments to assemble a stellar team that is distinctly attuned to the needs of the families we serve,” said Rick Buoncore, Executive Chairman at MAI. “We believe that Jon and Tim will be highly additive in this regard, bringing invaluable expertise in helping athletes and sports professionals navigate their careers and personal trajectories. Their knowledge and experience make them a tremendous asset to both our team and our clients.”
Equitable Advisors Recruits Former J.P. Morgan Advisor
Equitable Advisors lands Shebna Olsen-Shillibeer, who previously worked for J.P. Morgan Wealth Management, where she managed more than $180 million in client assets. Olsen-Shillibeer specializes in investment, retirement, estate planning, intergenerational wealth transfer and educational savings planning strategies for individuals, families, corporate executives and institutions.
With three decades of experience, Olsen-Shillibeer was drawn to Equitable’s supported independence model and open-architecture platform. Based in New York City, Equitable manages $100 billion in assets under administration with 4,600 financial professionals.
“My commitment to delivering the best experience for my clients and growing my business are at the heart of this move,” said Olsen-Shillibeer. “Equitable Advisors offers me the flexibility to manage my practice, backed by the support of a well-established firm. The company’s open-architecture platform also gives me the freedom to choose the solutions and strategies that best fit my clients’ unique goals.”
NewEdge Advisors Snags $1.4 Billion Team From Merrill Lynch
NewEdge Advisors in New Orleans recruits Krueger, Fosdyck, Brown, McCall & Associates, a team based in Destin, Florida, that managed $1.4 billion in assets for Merrill Lynch. Joining NewEdge are Founders Tim Krueger, Cory Fosdyck, Jerry Brown and Collin McCall, along with Senior Wealth Advisors Nina McClanahan and Gabe Campbell.
The team chose Goldman Sachs Custody Solutions for its primary custodian. ECHELON Partners served as the exclusive sell-side financial advisor to Krueger, Fosdyck, Brown, McCall & Associates.
“I am grateful that these industry-leading practitioners have chosen NewEdge as their new home, and we look forward to providing the resources and solutions they need to deliver comprehensive wealth management and planning for families, business owners, and institutions,” said Alex Goss, CEO of NewEdge Advisors.
Strategic Partnerships
Wealth.com Partners With Cetera
Wealth.com, an estate planning platform based in Phoenix, forms a strategic alliance with Cetera Financial Group. The partnership allows more than 12,000 financial professionals in the Cetera network to access Wealth.com’s technology and resources.
Wealth.com provides its platform to over 700 wealth management firms. Cetera, based in San Diego, oversaw $545 billion in assets under administration and $235 billion in AUM as of Sept. 30. The two firms will host a webinar on May 1 to explain how this partnership will enhance estate planning for advisors.
“Financial advisors today are expected to provide more comprehensive guidance than ever before, and estate planning is a critical component of that responsibility,” said Tim White, Co-Founder and Chief Growth Officer of Wealth.com. “Cetera recognizes that modern advisors need the right tools to help clients navigate the complexities of wealth transfer and legacy planning.”
Promotions & People Moves
Osaic Names Former Meta Executive As General Counsel
Osaic, a wealth management firm based in Scottsdale, Arizona, appoints Saumya Bhavsar as Chief Legal Officer and General Counsel. She will join Osaic’s Executive Leadership Team and craft a legal strategy that helps advisors navigate the evolving regulatory landscape.
Bhavsar previously served as Vice President and Head of Legal at Meta FinTech, where she oversaw lawyers advising on the social media network’s payment products and activities. She also served at Diem Networks, Credit Suisse, UBS and the Office of the Comptroller of Currency at the U.S. Department of Treasury.
“I look forward to leading Osaic’s legal and regulatory strategy in a way that strengthens our firm and the advisors we support,” said Bhavsar. “Osaic is redefining wealth management with an entrepreneurial spirit and a commitment to excellence and integrity. I’m eager to apply my experience to build a strong legal framework that helps advisors grow their businesses and deliver exceptional service to their clients.”
Julius Buchanan, Editor in Chief at Wealth Solutions Report, can be reached at julius.buchanan@wealthsolutionsreport.com.
