Raymond James, LPL Financial, acquisitions and other news of the week

Published August 6, 2021 4:38 PM

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Updated August 6, 2021 5:29 PM

1 Min Read

LPL Financial took on several RIAs over the last week; executives were on the move to J.P. Morgan, Cetera, LPL and others; while acquisitions continued throughout the industry.

Scroll through to see more of the week’s financial news.

Financial advisors Robert Allen, Marcel Morin and April Davis of Glen Allen, Virginia-based Capstone Financial Partners left Kestra Financial to affiliate with LPL Financial. They managed $170 million in client assets with their prior firm, and each of the advisors are instructors teaching investment and planning courses at the University of Richmond’s School of Professional and Continuing Study. “We want to recruit and hire the next generation to ensure the continuity of our business and client coverage,” Allen said in a statement. “We expect our growth to accelerate over the next few years and are confident that LPL will provide us with the innovative resources and solutions to keep up with our trajectory.”

Homrich Berg, an Atlanta-based RIA with $10 billion in client assets, sold a minority stake to New Mountain Strategic Equity I, a fund affiliated with private equity firm New Mountain Capital. The investment will enable the RIA to expand throughout the Southeast while addressing ownership succession planning. “More than 30 years ago I co-founded Homrich Berg with a belief in independent, objective, fee-only advice for our clients,” CEO Andy Berg said in a statement. “We have worked hard to ensure the long-term independence of Homrich Berg through the addition of many talented principals to broaden our ownership. As we look ahead to the next 30 years of independence, we look forward to collaborating with NMC in support of our strategic objectives.” The Asset & Wealth Management Investment Banking team of Raymond James Financial, Inc. and Alston & Bird LLP advised Homrich Berg in the transaction, while Ropes & Gray LLP and DeVoe & Co. represented New Mountain Capital.

Merit Financial Advisors, an Atlanta-based hybrid RIA affiliated with LPL Financial, made its first deal since the firm received a minority investment in December from financial services holding company Wealth Partners Capital Group and another group led by middle-market private equity firm HGGC. The firm acquired Consilium Financial Group, an affiliated practice in Merit’s RIA and office of supervisory jurisdiction that manages $291 million in client assets. Kirk Wilkerson and Andy Lubben, the co-founders of the Roswell, Georgia-based firm, had first aligned with Merit in 2015. “Our existing partnership with Merit has been a significant driver of our growth,” Wilkerson and Lubben said in a statement. “As we look to the future, we recognize the tremendous potential a deeper alignment with the firm presents for our clients and business.”

The tax professional-focused independent firm Avantax reached a deal to acquire one of its largest affiliated practices, Parsippany, New Jersey-based Headquarters Advisory Group. Upon the expected close of the transaction this quarter, Headquarters partners Samuel “Skip” Angelo, John Crowe and Michele Lee will fold into Avantax Planning Partners, an RIA that Avantax acquired last year under its previous name of HK Financial Services. Headquarters has $1.1 billion in client assets, and the practice first affiliated with Avantax in 2019 after the independent broker-dealer’s earlier acquisition of 1st Global. “We started building this billion-dollar portfolio about 20 years ago and recently felt we arrived at a crossroads in our succession planning,” Angelo said in a statement. “It’s a collaboration of teams, a very clear path for our end-clients with even greater support, and little change; it’s proven to be a valuable path for our firm, our culture and the passions we share.”

Former J.P. Morgan Chase managing director Corey Staten has joined LPL Financial as the firm’s executive vice president of service. The former manager in the megabank’s Merchant Services Operations unit worked with small businesses in his prior role, and with LPL he’s helping to lead an effort within the firm to deliver resources and answers more effectively to advisors that LPL calls its “care transformation for service.” In the San Diego-based role, Staten oversees LPL’s Service Center, Specialized Service Teams, Technical Support Help Desk and New Advisor Care Team while reporting to Chief Customer Care Officer Dayton Semerjian. “Corey is a passionate and strategic leader with a depth of experience designing and delivering client-centric service experiences for a large client base,” Semerjian said in a statement. “Importantly, he appreciates the balance between human and digital engagement to do more than just deliver but delight clients and the continuous improvement that requires.”

Kimberly Brumbaugh of Exton, Pennsylvania-based Brumbaugh Wealth Management left Lincoln Financial Network to affiliate with Cetera Advisor Networks and one of its largest enterprises, AdvisorNet Financial. The 17-year-old practice managed $300 million in client assets with its prior firm, making the move “after several months of due diligence and reflection about our firm's growth aspirations and trajectory,” Brumbaugh said in a statement.

San Antonio-based Genesis Wealth Management topped $1.1 billion in assets under advisement after growing to 16 advisors. The firm started with three advisors when it launched five years ago. The group, led by managing partners Jon Thompson, Jereme Brisco and Michael Dubensky, is affiliated with LPL Financial as its broker-dealer and Financial Resources Group Investment Services as its office of supervisory jurisdiction. Genesis has two other offices in Texas and one in Tampa, Florida. “When we started the firm in 2016, we just hoped we would survive the independent advising world,” Thompson said in a statement. “At that point, we didn’t have a vision of adding others to our team, but when some of our colleagues from USAA expressed interest in joining us, we happily accepted. Never would I have thought we would be here today celebrating this incredible accomplishment.”

The Ameriprise Financial Institutions Group added the investment program of the California Credit Union, California Credit Union Wealth Management and its San Diego County division, North Island Credit Union. Atria Wealth Solutions’ CUSO Financial Services was the program's previous broker-dealer. With 11 financial advisors across 25 branches in San Diego and Los Angeles, the credit union’s program manages $750 million in client assets. “We’re always focused on finding new ways to deliver personalized products, convenient services and leading technologies to support our members through every aspect of their financial journey,” California Credit Union CEO Steve O’Connell said in a statement. “Our partnership with Ameriprise Financial significantly enhances our investment solutions, helping members achieve their goals through a broad array of investment products, an improved digital experience and financial planning tailored to their unique needs.”

Financial advisor Mark Castle launched Marietta, Georgia-based Castle Wealth Partners by going independent with LPL Financial and Independent Advisor Alliance as its hybrid RIA and office of supervisory jurisdiction. The 30-year industry veteran, who is also a U.S. Marine veteran, left employee brokerage Stephens, where the practice managed $315 million in client assets. “Being able to deliver financial planning and investment management to our clients in a fiduciary capacity gives them the confidence that we always have their best interests at the center of our relationship,” Castle said in a statement.

Private equity-backed RIA consolidator Hightower has nearly doubled its assets under management and employees since January 2019 under its backing by Thomas H. Lee Partners and other investors. The firm said that it had passed $100 billion in AUM the week after it unveiled its latest deal

to purchase an RIA with $2 billion

. The firm has $101 billion in AUM and 1,120 advisors and employees, compared to $54 billion and 530 at the beginning of 2019. Since then, Hightower has completed 17 transactions, including 11 for RIAs with at least $1 billion in AUM. Its footprint extends to 115 practices in 34 states and Washington, D.C. “We are immensely grateful to our talented team of advisors, our support and service professionals, board and investors for all that we have achieved,” CEO Bob Oros says. “If we can do all of this in just 30 months, the sky is the limit in the coming years.”

Wells Fargo Advisors lost breakaway duo Jeff Anderson and Doug McClure of Bothell, Washington-based Legacy Wealth Partners. The pair went independent with Raymond James Financial Services as their broker-dealer and Mainspring Wealth Advisors as their office of supervisory jurisdiction. "If the last year has taught us anything, it's that you want to be surrounded by people who challenge you to be better,” Anderson said in a statement. “For us, that's the team at Mainspring."

J.P. Morgan Wealth Management has tapped former E-Trade Advisor Services President Matt Wilson to be its divisional director for the firm’s Central Division. The unit spans Wisconsin, Illinois, Indiana, Kentucky, West Virginia, Ohio, Michigan and Texas, states with about 1,330 J.P. Morgan advisors in the firm’s branches. Wilson had earlier tenures with Charles Schwab and Scottrade Brokerage, where he was CEO. In the new role, he’s operating from Columbus, Ohio, and reporting to Eric Tepper, the CEO of Chase Wealth Management. “As we continue to prioritize the growth of our business, serve the evolving needs of our clients, and recruit and retain talented advisors across the country, we’re thrilled to welcome Matt to oversee our branch-based advisors in the Central Division,” Tepper said in a statement. “Matt has excellent experience leading effective wealth management teams and growing businesses, and we look forward to continuing to strengthen our wealth management offering with him.”

In the bank channel, Truist Wealth promoted Oscarlyn Elder and Keith Lerner to be co-chief investment officers of the Charlotte, North Carolina-based firm. The appointments are effective Sept. 30, upon the retirement of current CIO Ernie Dawal. Each of the incoming executives are veterans of SunTrust Private Wealth Management before its parent firm’s merger with BB&T. Elder has been Truist’s wealth investment platform executive since 2019, while Lerner is chief market strategist and managing director of portfolio and market strategy for the bank’s wealth management program. In their new roles, they’ll manage the Truist Wealth Investment Advisory Group of Truist Advisory Services, with Elder leading investment due diligence and communications and Lerner taking charge of the portfolio, equity and fixed-income strategy teams. “Oscarlyn and Keith are experienced investment professionals who are committed to helping our clients achieve their investment objectives,” head of Truist Wealth Joseph Thompson said in a statement.

Major hybrid RIA practice Serafini Financial Group left Commonwealth Financial Network to affiliate with LPL Financial and fold into Wealth Enhancement Group. Hagerstown, Maryland-based Serafini has 12 employees, including four advisors, and $853 million in client assets. Founder Andrew Serafini launched the firm in 1990 and now operates it alongside fellow advisors Douglas Nigh and Nathanael Hanft. The deal with Wealth Enhancement Group closed on Aug. 1. With the acquisition, Wealth Enhancement completed its ninth deal of the year. Since June 1, the private equity-backed firm’s purchases have added 38 advisors and $6.79 billion in client assets. With its latest one, Wealth Enhancement Group has topped $39 billion in client assets.

Turnkey asset management platform SMArtX Advisory Solutions had a few updates this week, beginning with an enhanced integration with SS&C’s Black Diamond wealth management software. The update brings a more user-friendly client experience and a direct data feed that lets advisors analyze managed account sleeves within Black Diamond. SMArtX also launched 45 new investment strategies on its TAMP, bringing the total number available to 877. The additions come from large firms such as BlackRock and Invesco Advisers, as well as newcomers such as Causeway Capital Management, Copeland Capital Management, Flexible Plan Investments, Focus Point Capital and MayTech Global Investments.

Advisor marketing firm FMG Suite has a new mobile app, giving advisors easier access to FMG’s library of content marketing materials on iOS and Android devices. Through the app, advisors can select which clients or prospects to send materials to, schedule and review email newsletters, and post to social media. The app will alert advisors when new content is available to address current events, breaking news stories and holidays.

Onramp Invest, a fintech startup offering RIAs access to cryptocurrency, closed a $6 million round of seed funding led by Coinbase Ventures, Ritholtz Wealth Managers, WisdomTree and a handful of others. The company plans to use the funding to expand the service it provides advisors, increase its engineering team and explore broker-dealer registration.

Altruist, the digital brokerage startup that recently raised $50 million in funding, made two executive hires to bring more industry experience to its leadership team. Altruist named Grace Mellis, who spent a decade at JPMorgan Chase before taking over as chairman of car rental startup Hyrecar, as its first chief financial officer. The company also announced Adam Grealish, who had been Betterment’s head of investing for nearly five years, is joining as head investments.