Advisory M&A News – 10/21/24

Carson completes deal with Sweet Financial; Beacon Pointe Advisors adds Landmark Wealth Management; and Journey Strategic Wealth announces 2 acquisitions.

Carson completes deal with Sweet Financial

Carson Group, a wealth management and financial services firm, announced its second largest deal to date with the addition of Sweet Financial Partners, a Fairmont, Minnesota-based firm with roughly $1 billion in assets under administration.

Sweet Financial Partners is led by Bryan Sweet, managing partner and wealth adviser. The 12-person team will continue to operate as Sweet Financial Partners and retain its local focus while leveraging Carson’s national resources. The firm specializes in retirement planning, tax efficiency, wealth transfer and business exit planning.

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Sweet has been a long-term member of Carson Coaching and has implemented many of its principles throughout his career. Sweet Financial Partners was advised by Wise Rhino Group, which provides M&A advisory services for the financial services industry.

“Bryan and his team exemplify the values and client-centric approach that Carson stands for,” Burt White, CEO of Carson Group, said in a statement. “Their expertise in comprehensive financial planning and commitment to a ‘life well lived’ mentality make them an ideal addition to our advisor community.”

Beacon Pointe Advisors Adds Landmark Wealth Management

Beacon Pointe Advisors announced its latest acquisition: Landmark Wealth Management Group, based in Lake Elmo, Minnesota. Landmark oversees approximately $1 billion in client assets under management across its four offices, which include Farmington, Minnesota; Hudson, Wisconsin; and San Jose, California.

Established in 1977, Landmark has a team of founding partners and second-generation owners. John Underwood, Landmark’s chief financial and chief operating officer, will act as the incoming Beacon Pointe managing director. In addition to Underwood, Gary Tangwall and Todd Gillingham, 33 members will join Beacon Pointe.

Landmark is Beacon Pointe’s fifth publicly announced registered investment advisory acquisition of 2024 and the first formal office presence for Beacon Pointe in Minnesota.

“Beacon Pointe is ready to embark on this exciting chapter and enter new U.S. territory with Landmark,” Matt Cooper, Beacon Pointe’s president, said in a statement. “We’ve aimed to establish a more significant presence in the Midwest, and the Landmark team seamlessly met our objectives.”

Journey Strategic Wealth Announces 2 Acquisitions

Journey Strategic Wealth, a national RIA for independent advisers, has announced two acquisitions: Creative Financial Services of Colorado Springs, Colorado, and veteran adviser Chad Faulkenberry, formerly of Charles Schwab, who will expand its reach into Orlando.

In Colorado Springs, Jill Isbell, known for her work in financial education, has integrated her firm into Journey, expanding its services. Isbell and Yenni Chesire, office manager, will continue to offer comprehensive financial planning and wealth management.

Faulkenberry, an adviser who had managed $750 million in assets at Charles Schwab, will enhance Journey’s Richmond, Virginia, practice, which has grown 40% year-over-year, by extending its presence into Orlando. His expertise in serving high-net-worth families aligns with Journey’s growth strategy.

Since its inception in 2021, Summit, New Jersey-based Journey has attracted eight advisory teams nationwide, driving an average top-line revenue growth of more than 70% for affiliated advisers.

RIA Hightower to Take Majority Stake in NEPC

The deal will combine NEPC’s institutional investment, research and OCIO capabilities with Hightower’s rapidly growing registered investment advisory network.

Hightower Holding, a Chicago-based registered investment advisor, is adding a major institutional investment consultancy to its practice by taking a majority interest in NEPC LLC.

The deal is scheduled to be completed in 2025 and would bring the two firms under one parent company with combined assets under administration of $1.8 trillion and assets under management of $258 billion, the firms announced Monday. NEPC will continue to operate independently from Hightower and retain a 20% ownership in the firm, according to a spokesperson. Neither Hightower nor Boston-based NEPC would provide terms of the deal.

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Hightower has been expanding its RIA base rapidly in recent years through acquisition, amid consolidation in the sector. The NEPC stake, according to Hightower, will bolster its access to institutional-quality investment research, alternative assets and outsourced chief investment officer capabilities for the private wealth segment of the market—which the firm noted is becoming more attractive to wealth investors.

For NEPC, the deal will create a “new growth channel” across its investment advisory and OCIO services in wealth management, the firms wrote.

Bob Oros

After the deal closes, NEPC Managing Partner Mike Manning will join Hightower’s board of directors. Otherwise, Hightower wrote that NEPC is “expected to retain its culture, executive team, and investment process, ensuring no disruption to its existing business operations and client service.”

Bob Oros, chairman and CEO of Hightower, billed the deal is a “transformational combination” in a statement, noting the “distinctive opportunity that both businesses can offer the private wealth market when combined.” 

The move is part of a newer trend of RIAs bringing on institutional investment and consultancy capabilities. Firms that originated as qualified plan advisories, meanwhile, are continuing to seek out wealth management divisions to grow their footprints.

Hightower provides investment, financial and retirement planning services to individuals, foundations and family offices, as well as 401(k) consulting and cash management services to corporations.

Mike Manning

NEPC serves more than 400 clients representing $1.66 trillion in assets.

Moelis & Co. advised NEPC in the transaction, and Goodwin Proctor LLP gave legal counsel. Berkshire Global Advisors provided Hightower with advisement on the institutional investment consulting and OCIO industry, and Kirkland & Ellis LLP gave legal counsel. 

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