Deals & People May 13, 2024

Advisory M&A News – 5/13/24

J.P. Morgan Wealth Advisors Snags $28B Merrill Team; NFP’s Wealthspire to acquire $420M Ohio RIA; Carson Wealth fully acquires partner firm with presence in three East Coast states; and more.

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J.P. Morgan Wealth Management Adds $28B Wealth Team

J.P. Morgan Wealth Management has brought over a $28 billion advisory from Ban of America’s Merrill division.

Eric Gray and Lance Polverini have joined J.P. Morgan Wealth Management in Los Angeles as a wealth partner and wealth adviser focused on ultra-high net worth clients and families, according to a J.P. Morgan spokesperson. Gray was with Merrill since 2000 and Polverini had been with them since 2007. Team members Drew Sapede, an investment association, and client associates Michelle Blackmer and Irma Deluna will also make the move.

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“We very much look forward to taking our practice to the next level, leveraging the extraordinary resources and expertise of J.P. Morgan on behalf of our clients,” Gray said in a statement.

The pair will report to David Berger, market leader for the Southwest region and work with Michael Rogers, the Southwest regional director.

“Eric and Lance have a long, proven record of providing exceptional service to their clients,” Phil Sieg, CEO of J.P. Morgan Advisors, said in a statement. “Their decision to join us is further confirmation that J.P. Morgan Wealth Management is the best place for the industry’s top advisors to grow their business and for clients to grow their wealth. We are proud to welcome them.”

Wealthspire Adds $420M RIA In Ohio

Wealthspire Advisors has entered into a definitive agreement to acquire Walden Wealth Partners, a $420 million registered investment adviser based in Beachwood, Ohio.

The deal will expand Wealthspire’s footprint in the Midwest and add assets under administration to $420 million. Walden Wealth founders Karin Maloney Stifler and Sarah Hannibal will join Wealthspire, which has been expanding in part through acquisition recently.

Walden Wealth was founded in 2015 and specializes in financial advisory and investment management services for individuals and families, as well as financial planning and fiduciary consulting for retirement plan sponsors, trustees and charitable entities.

“Partnering with Wealthspire will enable us to continue what we’ve started and expand our ability to support the needs of our clients for generations to come,” Maloney Stifler said in a statement.

MarshBerry advised Walden Wealth Partners on the transaction.

Wealthspire is headquartered in New York and is an NFP company, which itself is owned by Aon. The firm has more than $25.8 billion in AUM.

Carson Wealth Grows in Maryland, Georgia and Tennessee

Carson Wealth, the wealth management division of Carson Group, announced that it has taken a full ownership stake in an advisory spanning three states to expand its footprint on the East Coast.

The Omaha, Nebraska-based registered investment adviser announced the full acquisition of a firm led by Managing Director, Partner and Wealth Advisor Scott Ford that it had previously had a minority stake in. Ford’s firm has offices in Hagerstown, Maryland, Atlanta, Georgia and Johnson City, Tennessee, and manages $840 million in assets. 

“This move helps solidify our commitment to the clients and families we serve, even long after I may no longer be leading the firm,” Ford said in a statement. “Transitioning these locations to be wholly-owned allows us to enhance the way we serve our clients.”

Ford was the first partner to join Carson’s partner network program in 2012, according to the announcement. His group has grown to more than 30 advisers and operations employees.

“Carson’s business model is designed to support the growth and operational needs of financial advisors in a variety of ways,” Burt White, CEO of Carson Group, said in a statement. “But perhaps one of the most powerful aspects is our ability to facilitate smooth succession plans, where an adviser can confidently pass the reins to the next generation while knowing their clients will continue to receive the highest level of care and service.”

Lincoln Financial Group Completes Sale of Wealth Management Business to Osaic

Lincoln Financial Group has finalized the sale of its independent broker-dealer and registered investment advisory firms to Osaic Inc. first announced in December 2023.

With the close of the transaction, 1,450 financial professionals along with Lincoln’s home-office employees supporting the wealth management business will officially join Osaic.

The sale, in turn, provides Lincoln with about $650 million of capital benefit, which the company says will go toward increasing risk-based capital ratio and reducing leverage ratio.

“Lincoln is focused on continuing to execute on our enterprise strategic pillars, leverage our core strengths to grow our individual insurance solutions and workplace solutions businesses, and deliver long-term value for all of our stakeholders,” Ellen Cooper, chairman, president and CEO of Lincoln Financial Group said in a statement. “We look forward to our long-term strategic partnership with Osaic as we continue to provide financial professionals with products and solutions that will help them best serve their clients.”

The divisions joining Osaic were previously Lincoln Financial Advisors Corporation and Lincoln Financial Securities Corporation. Lincoln is retaining all aspects of its Lincoln Financial Distributors unit, which provides wholesale distribution of retail products. It is also keeping its independent agents channel, now part of LFD, and expanding its distribution relationship with Osaic financial professionals.

 

 

Deals & People May 13, 2024

Edelman Financial Continues Wealth Management Push with First Deal of 2024

The leading 401(k) managed account provider continues to build out its wealth planning footprint with acquisition of $453 million Soundmark.

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Edelman Financial Engines started what looks like a trend of more wealth management acquisitions in 2024 by announcing Monday that it is bringing on Kirkland, Washington-based Soundmark Wealth Management.

EFE is acquiring the investment advisory firm founded by Bill Schultheis in 2008, adding more than $453 million in assets for over 250 households to expand individual and small business financial planner services in the Pacific Northwest. The deal comes after EFE made its largest acquisition in December in terms of assets under management with New England Pension Plan Systems, a wealth and retirement planning firm overseeing $1.5 billion.

Suzanne Van Staveren

EFE, which is the leading provider of managed accounts in retirement plans, is executing on a strategy to expand its financial planner capacity nationally, noting in Monday’s announcement it will “continue conversations with more potential partners throughout the remainder of the year.” The Santa Clara, California-based company noted its acquisition strategy is partly to meet growing plan sponsor demand for individual planning services for participants.

“The interesting trend that we are seeing is that more employers are wanting to offer help beyond the 401(k) creating a convergence of our two business areas,” says Suzanne van Staveren, EFE’s executive vice president chief financial officer and chief operating officer. “This trend is increasing access to comprehensive financial planning and a relationship with a dedicated adviser for employees who have more advanced needs or might want a higher-touch service.”

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Adding Capabilities

Van Staveren says Soundmark hit the marks for EFE by offering additional benefits to clients via their planners along with expanded capabilities and expertise for EFE, including a skillset of providing financial services to the medical and technology industries. Other acquisitions, van Staveren notes, have expanded capabilities in areas including retirement plan advisement and tax planning.

“As we pursue more inorganic growth through acquisitions, we are looking at all regions and focus specifically on how well the firm fits our values and philosophy,” she says. “With Soundmark, we achieved both with a firm that is a great fit and likeminded in how we serve clients as well as being in a desirable area where we have a strong market opportunity.”

In a statement, Soundmark’s Schultheis noted the benefits of partnering with EFE including clients gaining from “more resources and planning expertise while our planners will have more support and less administrative duties, allowing them to focus even more on our clients.”

Baker & McKenzie LLP was EFE’s counsel for the transaction; Montgomery Purdue LLC was Soundmark’s counsel.

EFE currently manages more than $270 billion in assets with over 145 offices.

In Or Out of Plan

The CFO touts EFE’s position in the market of providing both in-401(k) plan investment services through managed accounts and out-of-plan wealth management services.

“Unlike most RIAs, we are also not reliant on the rollover to grow our business,” Van Staveren says. “Some employees might want to keep their 401(k) assets with a former employer, and we can continue to provide our services in the plan. Other employees may choose to leave the plan and keep all their assets in one place, and we can help with that as well. Since our planners are free of product conflicts, there is peace of mind that they are acting in your best interest too.”

She notes the brand awareness that the managed account services create among participants for when they start considering options in retirement. In February, EFE noted its managed account assets hit $210 billion, accounting for what it tracked as 45% of the market.

While those assets are relatively small amid the trillions invested in defined contribution plans, managed accounts have been growing over the past 10 years, jumping to about $434.57 billion in 2023 from about $170 billion 10 years ago.

“Managed accounts in the workplace help employees with their 401(k) saving, investing and planning for retirement,” Van Staveren says. “But for individuals who might have more complex planning needs, the next step is working with a dedicated planner who can help with the entire household needs, all their financial goals (short- and long-term), tax guidance, estate planning and much more.”

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