Creative Planning acquires $300M RIA in succession-plan deal

As succession planning prompts more financial advisors to fold into RIA consolidators, a practice that was an early adopter of fee-only planning joined one of the largest firms.

Creative Planning has acquired Berno Financial Management, a Cincinnati-based RIA with more than $300 million in assets under management, the firms said on Jan. 4. Longtime National Association of Personal Financial Advisors member Bruce J. Berno sold the practice for an undisclosed amount in a deal that closed on Dec. 1, or 28 years after he launched the independent RIA, Berno said in an interview. The merger represents the “beginning of a 3- to 5-year glidepath to retirement,” he said.

“We needed to improve our technology and the depth and breadth of our services,” Berno said. “We’ve grown to a point where we needed to expand our staff.”

In addition to Berno, the team includes two other CFPs, Donna Ellis and Kathleen Blain, along with client service assistants Kimberly Masco and Joanne Skinner. Tapping investment bank and consulting firm Park Sutton Advisors to assist with the practice’s search, Berno and the team whittled the near-weekly inquiries from potential suitors down to six, then four, then two finalists before choosing Creative Planning, Berno said.

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Just as in the case of other RIA consolidators driving the continuous record M&A volume in wealth management, the past year saw the firm led by CEO Peter Mallouk soar to new heights. In November alone, the firm topped $100 billion in AUM for the first time, unveiled an agreement to acquire the $110-billion retirement business of giant insurance brokerage Lockton and purchased a practice with $890 million in client assets. Creative Planning has been racking up the deals since private equity firm General Atlantic made a minority investment in 2020.

“Bruce has built a great practice and his planning-led, tailored investment approach fits in well with our offering,” Mallouk said in a statement. “Bruce and the entire Berno team will be joining our Cincinnati practice as we continue to expand in this important market.”

Since 2019, Creative Planning has acquired at least 16 firms, according to Simon Hoyle, the senior vice president of recruiting and M&A at Henschen & Associates. Enhanced services from Creative Planning through its hundreds of corporate employees and the opportunity to boost its value even more over time have proven attractive to practices like Berno’s. Succession planning has also played an “immense” role in fueling the record number of deals in wealth management year after year, Hoyle said in an email.

“Most advisors I know in the business that ‘made it’ continue with it as their career and planned to ‘die with their boots on,’” Hoyle said. “Advisors are asked on occasion by clients, ‘Who will take care of me when you're gone?’ That is a growing concern for everyone.”

Berno, who turns 62 years old next month, doesn’t plan to step down for several years. Still, he says he saw no reason to delay making a deal with a larger firm.

“It's important for people to plan this three to five years before they actually want to retire, not just six or twelve months,” Berno said.