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SagePoint’s recruiting effort adds $240M in client assets

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SagePoint Financial added two firms, a handful of advisors and $240 million in combined assets under advisement with its latest recruiting sweep, the company says.

One of Advisor Group’s four IBDs, SagePoint has been steadily building its nationwide network of affiliates to 1,350 advisors overseeing almost $50 billion in assets. The firm’s revenues are likewise growing, hitting almost $352 million in 2017, making it the seventeenth largest firm by total revenue, up two spots from the year before, according to Financial Planning's annual FP50 survey.

So far this year, the IBD has recruited seven firms and just under 60 advisors, which has resulted in $17 million in additional revenue, says Jeffrey Auld, CEO of SagePoint. Its newest additions include Droeg Financial Services and Kranenburg Accounting and Tax Service as well as five other advisors.

“Advisors chose to affiliate with us because they are looking for resources, most often technology, that their firm cannot provide,” Auld says. “The investments we’re making in technology, the marketing consultants we offer, and the dedicated succession planning resources are all things only larger firms can provide, though we work hard to deliver a personal experience that makes advisors feel they’re at a smaller firm.”

Auld adds that much of the recruitment has not been driven by their own marketing department but rather by referrals from advisors currently on their network and other partners, such as the various mutual funds or money management firms they work with. A third of new affiliates find the company through third-party recruiting or consulting firms.

Based in Mesa, Arizona, Droeg Financial Services specializes in insurance, annuities, tax management and estate conservation. It oversees $43 million in AUA. Kranenburg Accounting and Tax Service opened in 1986 in Lehi, Utah. The firm handles $18 million in AUA and focuses on tax preparation, mortgage refinancing and payroll services.

SagePoint’s largest recent recruits are a pair of advisors, Michael McMahon and Thomas Baird of Veritas Wealth Management. The Houston-based advisors bring $130 million in assets with them. McMahon and Baird spent the last 11 and 10 years, respectively, with Next Financial Group, according to their FINRA BrokerCheck records.

SagePoint’s other recruits include Bluegrass Wealth Management, operated by advisors Matthew Cox and Chris Little, who manage $34 million in assets, and Robert Shiner, who handles $15 million in assets for Midwest Financial Advisors. Cox and Little are based in Lagrange, Kentucky. Shiner works in Sterling Heights, Michigan.

Cox and Little spent the previous 12 years with Next Financial and before that worked at Waddell & Reed, according to their FINRA BrokerCheck records. Shiner began his career at Princor Financial Services Corporation but joins SagePoint from O.N. Equity Sales Company, where he spent the past three years.

Auld says the company welcomes advisors operating under any business model with a clean regulatory history.

“I’m just as excited about recruiting advisors with a commission-based practice as I am about any other types. SagePoint isn’t focused on a certain product or business mix,” Auld adds.

SagePoint is also in talks with additional firms and Auld anticipates announcing more recruiting moves before year end.

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