This edition of the Weekly Recruitment Roundup features our newest Recruiter Of The Month. We speak with Michael Belluomini, VP of Mergers & Acquisitions for Carson Group, about the company’s growth strategy.
This week’s deals also include NewEdge Wealth recruiting First Republic advisor Michael Kramer, CoastalOne onboarding nine advisors from Titan Securities, Mercer Advisors acquiring Kingfisher Capital, Modern Wealth Management acquiring its fifth firm since launching this year, Fidelity launching an Independence Hub for advisors, Concurrent adding Schwab as a custodian, Rise Growth Partners recruiting Wealth Enhancement Group COO Terri Kallsen and SageView Advisory Group appointing three executives to its senior leadership team.
Advisor Transactions
1. NewEdge Wealth Recruits First Republic Advisor To Connecticut Headquarters
Stamford, Connecticut-based NewEdge Wealth recruited Michael Kramer to its headquarters as a Managing Director, along with two client service associates. He previously served as a Managing Director and Wealth Manager with First Republic Investment Management. Kramer, who has nearly two decades of wealth management experience, was a board-certified practicing cardiologist earlier in his career.
In August, NewEdge Wealth launched NewEdge Investment Solutions, a third-party investment platform to provide financial professionals and institutions with access to the same strategies that the RIA uses with its own clients. This year the RIA also opened offices in Nashville, with former UBS advisor Richard Ina; in San Francisco, with former First Republic advisor John Froley, who was joined by former Wells Fargo advisor Dale Schroeder; and in Bentonville, Arkansas, with former Arvest Wealth Management advisor Hunter Gehring.
“I am excited to become a part of NewEdge Wealth where I can continue to seek to help my clients grow and preserve their wealth,” Kramer said. “[NewEdge Wealth CEO and Co-Founder Rob Sechan] and his team have accomplished so much in a short period of time, and I look forward to taking advantage of the firm’s structure, solutions and services as we contribute to the firm’s continued success.”
2. CoastalOne Onboards 9 Advisors With Over $500 Million In Assets
The broker-dealer and RIA CoastalOne onboarded nine financial advisors plus support staff who oversee more than $500 million in combined client assets. All of the advisors previously were affiliated with Texas-based Titan Securities.
The recruited advisors include Todd Gottel of Lone Star Wealth Advisors, Thomas Shultz of LyfeAdvisors, Chuck Lanza of Integrity Capital Advisory and Rick Goodwin of Income & Wealth Strategies. Gottel and Shultz each have approximately a decade of wealth management experience, Lanza has approximately 12 years of experience and Goodwin has over 30 years of experience.
“As we continue to implement our ambitious growth strategy and build out our Texas presence, I’m excited to welcome our new colleagues,” said Kevin M. Keefe, CEO of CoastalOne. “They will benefit from our personalized, boutique service model and culture, as well as our focus on providing sophisticated and differentiated wealth management solutions for their clients.”
Mergers & Acquisitions
3. Mercer Acquires $630 Million Kingfisher Capital In North Carolina
Denver-based Mercer Advisors acquired Charlotte, North Carolina-based Kingfisher Capital (KC), which oversees approximately $630 million in assets under management (AUM) across approximately 210 clients. Alexander Miles and H.K. Hallett founded Kingfisher in 1989. The firm operates as a family office solution to high net worth clients.
Kingfisher chose Mercer due to its status as a national family office RIA with institutional investment capabilities, dozens of estate planning lawyers, a dedicated team of CPAs and other tax professionals, as well as an in-house corporate trustee and other services. Mercer manages $52 billion in client assets.
“KC is an ideal fit for us. Alex and H.K. are high-integrity professionals with a fantastic team and we are thrilled that they are joining our mission to build the nation’s leading fiduciary-based wealth management firm,” said Mercer Advisors CEO Dave Welling. “Together with our already strong presence in the South/Southeast, we present a formidable juggernaut.”
4. Modern Wealth Acquires Martin James Investment & Tax Management In Fifth Deal
Modern Wealth Management acquired Indianapolis-based Martin James Investment & Tax Management. The deal is Modern Wealth’s fifth full transaction since launching in April, and it comes after the recent deals with Midwest Financial, Barber Financial Group, Osiwala Financial Group and Financial Security.
The acquired firm – an integrated tax, wealth management and planning firm serving more than 400 families, individuals and business owners – has over $100 million in assets. It was founded in 1986 by Martin James, a CPA who joins Modern Wealth as a Managing Director. As of its October SEC ADV filing, Modern Wealth had over $1.5 billion in AUM.
“In our mission to better equip our advisors and to improve their clients’ financial lives, Martin James stood out as a firm that will help us to expand our tax and wealth management capabilities,” said Gary Roth, Co-founder and Co-CEO of Modern Wealth. “We’re excited to weave Martin James’ valuable expertise into our already-robust team of dedicated financial specialists.”
Strategic Partnerships
5. Fidelity Launches Independence Hub To Help Advisors Go Independent
Fidelity launched an Independence Hub to help financial advisors navigate the decision-making process about going independent, learn about its potential benefits, address concerns of moving to an independent model, and provide resources for transition and growth. The Independence Hub includes an RIA valuation tool and thought leadership titled “Build Your Own Tech Stack One Step at a Time.”
The RIA valuation tool helps advisors understand the economics of going independent, including potential earnings and revenue changes. The thought leadership outlines how newly independent advisors can access technology for growth. Fidelity had assets under administration (AUA) of $11.7 trillion as of June 30.
“Arming advisors with the resources needed to help expand their breadth of knowledge has always been a priority,” said Rohit Mahna, Head of Client Growth at Fidelity Institutional Wealth Management Services. “Fidelity is committed to leveraging its deep expertise to not only help educate advisors and provide the tools needed to facilitate better outcomes, but be a true collaborator as advisors look to build their businesses.”
6. Concurrent Adds Schwab As Custodian, Reaches Over $6 Billion In AUM
Tampa, Florida-based Concurrent Investment Advisors added Schwab Advisor Services as a custodial solution, to bolster its value proposition to advisors as a provider of turnkey investment solutions, technology and support. As of its October SEC ADV filing, Concurrent had over $6 billion in AUM. The firm departed from Raymond James last year and has since restructured as a multi-custodial hybrid RIA.
Concurrent has recruited advisors and practices including Tidwell-Premock-Basilone Private Wealth Management, formerly with Wells Fargo; Cox, Klugh & Co., formerly with Goldman Sachs; Rodd Newhouse, formerly with LPL Financial; and Robert “Rooter” Wareing, formerly with Raymond James. Concurrent also recently added Lumature Wealth Partners, overseeing $700 million, to its advisory partner network, from Raymond James.
“After choosing Fidelity as our primary custodian and successfully onboarding more than $5 billion of assets onto that platform, we have made good on our pledge to offer our advisors a truly multi-custodial framework with the range and caliber of resources they expect to deliver truly independent, fiduciary service,” said Joe McQuaid, Managing Director of Platform Solutions for Concurrent.
Promotions & People Moves
7. Joe Duran’s Rise Growth Partners Appoints Terri Kallsen As Senior Operating Advisor
Rise Growth Partners appointed Terri Kallsen as Managing Partner and Senior Operating Advisor. Most recently, Kallsen was Chief Operating Officer at Wealth Enhancement Group. Before that, she was Executive Vice President - Investor Services at Charles Schwab.
The new venture from Joe Duran, the founder and former CEO of United Capital Financial Advisers, is scheduled to launch in early 2024 with the aim of providing minority capital of approximately 30% to RIAs with AUM in the $750 million to $5 billion range.
“Throughout my career, I’ve had the pleasure of guiding many RIA owners toward achieving growth and scale, demonstrably increasing enterprise value,” Kallsen said. “We’re looking for talented RIAs with a thirst for growth, a values-based culture, leaders who want to partner in a synergistic way, and most importantly, open to change for the betterment of their firm.”
8. SageView Appoints Senior Wealth Management And Legal Executives
Newport Beach, California-based SageView Advisory Group appointed Matt Cosgriff as Senior Vice President, Head of Wealth Management Advisory Services; Sophie Benander as Vice President of Wealth Management Client Experience; and Natasha Pfeiffer as Chief Legal Officer and Corporate Secretary.
Cosgriff previously was Director of Wealth Management at BerganKDV. Benander was Assistant Director of Wealth Management at Adviser Investments. Pfeiffer was a Vice President and Senior Legal Director at Goldman Sachs. SageView has more than 30 offices nationwide. The firm provides comprehensive wealth management to households, and serves retirement plan sponsors as well as defined benefit and deferred compensation plans.
“Matt and Sophie deliver an excellent balance of experience and drive,” said SageView CEO John Longley. “Natasha brings a range of legal and business experience to this position, and I look forward to working closely with her and leveraging her expertise as a key adviser for years to come.”
Recruiter Of The Month
Michael Belluomini, VP Of Mergers & Acquisitions For Carson Group
Omaha, Nebraska-based Carson Group recently added Columbia, Maryland-based FAI Wealth Management, which manages $300 million in client assets. The seven-person team, which was founded in 1987, will rebrand under Carson Wealth.
Carson Group manages approximately $30 billion in AUM and serves more than 47,000 families among its advisory network of more than 140 partner offices, including more than 50 Carson Wealth locations. The company also is a foundational partner of the second annual Excell Represent, whose mission is to advance the representation of women in wealth management. The event will be held from Nov. 15 to Nov. 16 in Orlando, Florida.
And now for our Q&A with Michael Belluomini, VP of Mergers & Acquisitions at Carson Group.
WSR: Over the past year, Carson Group has conducted over $5.5 billion in M&A activity. How does the firm go about finding potential acquisitions and deal partners, and what goes into your due diligence process?
Belluomini: We’ve spent the last two years consciously developing a network of investment banks, independent recruiters and other industry centers of influence to ensure we keep the top of the funnel robust. In addition to wholly owned acquisitions, we also have a highly talented sales team that looks for opportunities on the direct, 1099 financial partner model.
Sometimes, those turn into an M&A opportunity, particularly if an advisor wishes to sell a portion of their firm and diversify their holdings. Carson has also been running a successful coaching business for over 30 years. When those advisors look for succession options, we ask that Carson be in consideration.
WSR: How does Carson Group seek to differentiate itself as a destination of choice for advisory firm sellers, and what is Carson Group’s overall acquisition strategy and long-term growth goal heading into 2024?
Belluomini: Largely through our flexibility. Advisors are able to sell their entire enterprise, sell a minority interest or join as a direct partner without giving up any equity. Our ability to meet an advisor where they are in their current business and life cycle is met with appreciation. While full acquisitions often get the headlines, most people don’t see the approximately 70 minority investments and sub-acquisition/tuck-ins that we have also completed. We are a growth-oriented firm and are looking for potential partners that fit that mold.
For 2024, our goal is to continue our upward trend in direct, wholly owned M&A with our ideal fit (growth-oriented firms, with a strong focus on financial planning and who are looking for an institutional investment platform). We expect to be a serious, disciplined buyer in the marketplace for years to come.
WSR: What are the biggest trends you’re seeing in the M&A space, that buyers and sellers should pay attention to as they pursue successful wealth management deals?
Belluomini: I’ve been on record before with my belief that we have a 15-year bull market in wealth management M&A ahead of us. Most clients work with an advisor that is five to ten years within their age. As the baby boomer generation continues to transfer assets to the next generation, so too do the advisors looking for succession and continuity.
As this market has continued to grow apace, I would also caution prospective sellers to be very clear in what they hope to achieve in a transaction. The more that can clearly describe their ideal outcome, the more successful those first calls with a potential buyer will be. If you have deal-breakers or items that are non-negotiable, be up front about them. With the continued maturation of wealth management M&A, there are plenty of options from which to choose.
Chris Latham, Managing Editor at Wealth Solutions Report, can be reached at clatham@wealthsolutionsreport.com
