This edition of the Deals & Recruiting Roundup features our newest Recruiter of the Month, Troy Hammond, CEO of World Investment Advisors.
We also cover OneDigital Investment Advisors acquiring ASI Wealth Management, Bluespring Wealth Partners acquiring Rodgers & Associates Wealth Advisers, Sequoia Financial Group acquiring Karpas Strategies, Robertson Stephens acquiring Ratio Wealth Group, Commonwealth Financial Network recruiting Sentinel Advisory Group from Northwest Mutual, Cetera Financial Group recruiting Mike McCormick from Ameriprise, CAPTRUST Financial Advisors surpassing $1 trillion, Wealthcare Capital Management surpassing $7 billion, Focus Financial Partners promoting Travis Danysh to Chief Corporate Development Officer, Bridgemark Strategies adding three recruiting specialists, and Merrill Wealth Management partnering with IMG Academy to boost financial education for student-athletes.
Larry’s Take
Findings from DeVoe & Company’s Q2 DeVoe RIA Deal Book reinforce M&A trends that I highlighted last week when discussing recent reports from ECHELON Partners and Fidelity.
During the first half of 2024, 126 transactions were announced, up 5% compared to the same
period last year, while the second quarter’s 61 deals were below the 65 deals of the first quarter and above the 57 deals of Q2 2023, according to DeVoe.
It also found that nearly 75% of all transactions completed in the first half involved private equity-backed firms, while firms with over $5 billion in assets under management (AUM) accounted for 15% of deals in the first half and are on track to have a record year.
That brings us to the news in this week’s roundup, which includes an M&A player with over $107 billion in AUM and another firm with over $1 trillion in client assets. So it is reassuring indeed to also cover news about an advisor who thrives by overseeing $151 million in assets.
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. OneDigital Acquires $1.6 Billion ASI Wealth Management In Oregon
Overland Park, Kansas-based OneDigital Investment Advisors – a subsidiary of the insurance, financial services and HR platform OneDigital – acquired Bend, Oregon-based ASI Wealth Management, which has over $1.6 billion in AUM. OneDigital Investment Advisors had over $107 billion in AUM as of its July SEC ADV filing.
ASI’s 14-person team provides wealth management, institutional consulting and retirement plan consulting to individuals, families, corporations, and not-for-profit organizations. President and Founder Randy Miller started the firm in 1998. It also has offices in Portland and Medford, Oregon, as well as in Seattle. OneDigital announced 18 acquisitions in 2024, across all practices.
“We take great pride in welcoming Randy and the ASI team to OneDigital,” said Vincent Morris, President Retirement + Wealth at OneDigital. “This strategic acquisition aligns perfectly with our growth vision and solidifies our wealth management presence in Pacific Northwest. Together, this partnership opens up significant opportunities, complementing our existing strengths and allowing OneDigital to deliver even greater value to our clients.”
2. Kestra’s Bluespring Buys $1.35 Billion Rodgers & Associates In Pennsylvania
Kestra Holdings subsidiary Bluespring Wealth Partners acquired Rodgers & Associates Wealth Advisers, a Lancaster, Pennsylvania-based wealth management firm specializing in retirement planning that oversees more than $1.35 billion in client assets. Rodgers & Associates was founded more than 25 years ago by husband-and-wife partners Rick and Jessica Rodgers.
The deal increases the number of Bluespring partner firms to 27. Last month, Bluespring bought Shelton Financial Group, a Fort Wayne, Indiana-based firm overseeing almost $500 million in client assets, and transitioned the company’s investment business to Bluespring’s affiliated wealth management platform, Kestra Financial.
“From the beginning, we were drawn to Bluespring’s emphasis on growth at scale while staying true to the core of our business,” Rick Rodgers said. “Firm-wide, we look forward to building on even more organic growth and success in the coming years, supported by Bluespring’s array of resources so that we can continue excellent service and high-quality experiences for our clients.”
3. Sequoia Acquires $420 Million Karpas Strategies In Connecticut
Akron, Ohio-based Sequoia Financial Group, which had over $19.3 billion in AUM as of June 30, acquired Litchfield, Connecticut-based Karpas Strategies, which manages over $420 million in client assets; 75% of those come from multigenerational families. Matthew Karpas founded the firm in 1994. He works alongside Zachary Chernus and Liz Faraj.
Since 1991, Sequoia Financial has served high net worth clients and last year formed Sequoia Sentinel to expand its family office services, which include asset management, tax management, wealth transfer, asset transactions and charitable planning for multi-generational families. Overall, Sequoia has 15 offices in nine states. Its other acquisitions since early 2023 include AltruVista, Zeke Capital Advisors, Cirrus Wealth Management, Affinia Financial Group and M Capital Advisors.
“We’re pleased to join forces with Sequoia Financial, continuing our tradition of exceptional, highly personalized service for our clients,” Karpas said. “And we are especially excited for our clients to benefit from the broad and deep resources Sequoia Financial has built and the specialized services available within the Sequoia Sentinel Family Office.”
4. Robertson Stephens Acquires $530 Million Ratio Wealth Group In Colorado
San Francisco-based Robertson Stephens made its fourth acquisition of 2024 with Denver-based Ratio Wealth Group, which has over $530 million in advisory assets. Co-Founders Derek Scarth and Graham Gerlach join Robertson Stephens with their colleagues Josh Freedman, Nancy Kimball, Becky Neils, Jen Padgett, Jack Seavall and Shawn Wallace.
The deal enables Ratio to offer institutional-quality financial advice for individuals and families while maintaining a fiduciary relationship; greater expertise through an Investment Office, with access to private equity opportunities; as well as a wealth planning group with specialties that include tax and estate planning strategies. Robertson Stephens has over $6.5 billion in advisory assets across 22 locations.
“From our first meeting, it was clear that Ratio’s high-growth culture, commitment to financial planning and collaborative approach to client service aligned perfectly with our values,” said Raj Bhattacharyya, CEO of Robertson Stephens. “We are particularly excited about the valuable expertise the team brings as it relates to insurance planning and serving airline pilots. This merger, our largest to date, is a testament to the firm’s growing capabilities.”
Advisor Transactions
5. Commonwealth Recruits $300 Million Team From Northwest Mutual
Commonwealth Financial Network recruited Middleton, Wisconsin-based Sentinel Advisory Group, formerly with Northwest Mutual. With more than $300 million in client assets, Sentinel’s nine staff members include six advisors, led by Co-Founders Brent Cashore, Peter Shulla and Nathan Keeling.
In 2023, Commonwealth onboarded 292 advisors to new and existing practices, bringing on $15.9 billion in client assets, a nearly 42% increase to 2022, marking another year of record recruiting for the firm. Commonwealth partnered with about 2,200 independent financial advisors overseeing more than $296 billion in assets nationwide as of Dec. 31.
“The team at Sentinel Advisory Group recognized a natural fit between their core values and the Commonwealth culture, and we’re honored that when they were ready to make a change, they trusted us with their business,” said Becca Hajjar, Managing Principal and Chief Business Development Officer at Commonwealth. “By leveraging Commonwealth’s platform and our flexible model, this entrepreneurial team can start building for the future and can prioritize focusing on their clients’ goals while operating at their highest capacity.”
6. Cetera Recruits $151 Million Mike McCormick In Florida
Cetera Financial Group recruited Sun City Center, Florida-based Mike McCormick from Ameriprise. He is doing business as Southshore Wealth Management, had more than $151 million in assets under administration as of May 1, and joined Cetera Advisor Networks through Summit Financial Networks.
McCormick has 27 years of financial services experience. He has worked at Guggenheim Investments, Advisors Asset Management, Van Kampen Funds, BlackRock and Morgan Stanley. Summit Financial Networks has approximately $20 billion in assets across more than 350 financial professionals and 200 offices nationwide.
“I was initially interested in Cetera because I was looking for a large firm that played in the independent space and that could provide world-class marketing and technology,” McCormick said. “Finding the Summit community was really the cherry on top. I’ve been so impressed with the concierge-level service and support during my transition period – and I look forward to utilizing that same support in my day-to-day business.”
7. CAPTRUST Surpasses $1 Trillion In Total Client Assets
Raleigh, North Carolina-based CAPTRUST Financial Advisors surpassed $1 trillion in total client assets as of June 30. The firm launched in 1997 with a team of 12 and one office. It now has 1,600 team members and more than 90 locations nationwide. Last year, the firm acquired Trutina Financial, Column Capital Advisors and Southern Wealth Management.
CAPTRUST provides investment management, financial planning, estate planning, and tax advisory and compliance services for individuals and families; as well as specialized solutions for ultra-high net worth clients, retirement plan sponsors, endowments, foundations and religious entities.
“As we look forward, our opportunities are accelerating,” said Fielding Miller, Co-Founder, CEO and Chairman of the Board. “The RIA industry is in a great period of consolidation, and we are well positioned to continue our trajectory in the years to come, due to the tremendous work of our colleagues and the support of our vendor partners and our investment partners, GTCR and Carlyle.”
8. Wealthcare Surpasses $7 Billion In AUM, Adds Nine Advisors
Richmond, Virginia-based Wealthcare Capital Management, a technology-enabled RIA that supports independent financial advisors and a NewSpring Holding platform company, surpassed $7 billion in AUM, and surpassed $500 million in “advisor-driven models” for wealth managers who use their own models while outsourcing trading and rebalancing.
The firm, which was founded 25 years ago, also added nine advisors in the first half of 2024. Wealthcare also provides GDX360, a fiduciary process that integrates planning, investing, trading and practice management services. NewSpring Holding manages over $3.5 billion across five strategies that range from growth equity and control buyouts to mezzanine debt.
“Wealthcare’s achievements in the first half of 2024 highlight our dedication to supporting our advisors and clients,” said President and CEO Matt Regan. “We are proud of our growth and the milestones we have reached, and we are excited about the future. Our commitment to empowering advisors, driving growth and providing unparalleled service through our flexible solutions remains stronger than ever.”
Promotions & People Moves
9. Focus Promotes Travis Danysh To Chief Corporate Development Officer
Focus Financial Partners promoted Austin, Texas-based Travis Danysh, the firm’s Head of Mergers & Acquisitions and Business Development, to Chief Corporate Development Officer. He will report directly to Focus CEO Michael Nathanson. Danysh joined Focus in 2016 as a Vice President. Before that, he was an Analyst in the Financial Sponsors Group at Credit Suisse.
In his new role, Danysh will lead M&A and the direction of Focus’ consolidation strategy, capital deployment and economic structuring solutions, in addition to all business development initiatives. This year, Focus agreed for Atlanta-based Gratus Capital; Nashville, Tennessee-based InterOcean Capital Group; and Wellesley, Massachusetts-based GW & Wade to merge into another Focus firm, The Colony Group.
“I’m grateful for this expanded opportunity with Focus and for the privilege to work with Michael and alongside the rest of the leadership team as I embrace this new chapter of growth for our business,” Danysh said. “I have an incredibly talented team supporting me, and we are fortunate to be the beneficiary of a number of industry and company-specific tailwinds as we implement our enhanced strategy.”
10. Bridgemark Continues Growth By Adding Three Recruiting Specialists
Bridgemark Strategies, an independent consultancy for financial advisors and firms, hired Managing Directors Jason Hawn and Timari Robison, and Senior Vice President, Recruiting, Travis Boak. They bring over 50 years of collective advisor-facing consulting expertise to the firm, which provides strategic planning, execution and advice in transitions and M&A.
Hawn previously served at Ameriprise, Mainstay Investments and Hartford Funds/Planco. Robison spent 25 years with Ameriprise, most recently leading the firm’s Women Recruiting efforts. Boak previously worked at Cetera, where he worked in business development, and held positions at Black Creek Capital Markets and Transamerica.
“The addition of Jason, Timari and Travis enhances our comprehensive recruiting, onboarding, transition, succession planning and business consulting expertise,” said Jeff Nash, CEO and Co-Founder of Bridgemark. “Their experience across the independent, bank and wirehouse channels is a great complement to our strong team.”
Wirehouse Activity
11. Merrill Partners With IMG Academy To Boost Student-Athlete Financial Education
Merrill Wealth Management and IMG Academy, a boarding school and sports education brand, entered into a three-year partnership to boost financial awareness education and resources for student-athletes and their families. The IMG Academy provides student-athletes with online and on-campus experiences in Bradenton, Florida, as well as online college recruiting and access to a network of 40,000 college coaches.
Three years ago, Merrill launched a dedicated Sports & Entertainment group to serve wealth management clients. Through the partnership, Merrill advisors will provide specialized financial education to IMG Academy student-athletes and families, using Bank of America’s free financial education resource, Better Money Habits. It will cover the basics of savings, spending, credit, and general investing information.
“Athletes today are navigating an increasingly complex financial landscape and are expected to make decisions at an early age that can have a significant impact on their futures,” said Greg McGauley, Head of Merrill Private Wealth Management, International and Institutional Groups. “That is why this partnership with IMG Academy is so important and timely.”
Recruiter Of The Month
Troy Hammond, CEO, World Investment Advisors
World Investment Advisors, which has $11.5 billion in wealth-based AUM and recently rebranded from Pensionmark Financial Group, acquired Boston Harbor Wealth Advisors, an independent financial services firm located in Westborough, Massachusetts, with over $3.5 billion in AUM.
Boston Harbor specializes in financial planning and goal-oriented investment management for individuals, families and businesses through 76 team members located in 15 offices across the Northeast and Ohio. And now for our Q&A with Troy Hammond, CEO of World Investment Advisors.
WSR: How does the recent Boston Harbor Wealth Advisors acquisition fit into your firm’s overall growth strategy?
Hammond: I should start by saying that the firm had many great options, so we’re honored they chose World Investment Advisors. It was our eighth acquisition this year, which, I think, exemplifies that we are establishing ourselves as an ideal partner for successful RIAs.
Going forward, you will see us continue to focus on acquiring like-minded firms like theirs – ones that enjoy excellent leadership, a strong entrepreneurial bent and robust growth. Boston Harbor is a template for the types of partners we are looking for.
WSR: What types of wealth management firms make for ideal acquisition candidates?
Hammond: We have a very aggressive growth strategy, which includes both organic growth and acquisitions. Our focus, though, is on fee-based advisory businesses with growing recurring revenues looking for a partner that can accelerate their growth and help centralize operational functions. Not every firm or advisor will be a good business or cultural fit, despite our willingness to work with top-performing wealth management firms of any size.
Ideal acquisition candidates will have advisors who value and know how to collaborate well with their clients and colleagues to maximize efficiencies and hypercharge growth. The firms can range from small and mid-sized RIAs – and other independent financial advisor businesses that are not typically represented by investment bankers – to larger RIA firms that pursue conventional investment bank-facilitated acquisitions.
WSR: How does World Investment Advisors stand out to such acquisition candidates? What is the value proposition?
Hammond: We have almost 3,000 employees and offer wealth management, retirement plan consulting, employee benefits, and business and personal insurance. We understand the needs of advisors and their clients and deliver industry-leading centralized support to allow advisors to focus on what they do best, advising.
Also, our hybrid broker-dealer / RIA platform is a differentiator. It was built by advisors, for advisors, with technology that enhances their prospecting and client onboarding experiences.
Additionally, we work well with advisors with a high level of technical expertise, offering them solutions to support financial planning, investment management and tax-loss harvesting. Having the backing of World Insurance Associates, our parent, is another boon to our business. Everyone needs risk protection, and it is a leading provider of insurance solutions for high net worth and ultra-high net worth clients.
And, finally, I think a key differentiator is the value of being an owner here. Our shareholders have experienced and continue to experience tremendous growth while participating in a culture that focuses on ensuring we all have the ability to make an impact and benefit from the success of the organization.
Chris Latham, Managing Editor at Wealth Solutions Report, can be reached at clatham@wealthsolutionsreport.com.
