Strategy
Private Advisor Group Hooks Up With Platform, Builds Out Succession, M&A Toolkit
The development demonstrates how succession, consolidation and related activity in the North American wealth sector remain a big deal.
Private Advisor Group, a New Jersey-based wealth manager, has formed a pact with the platform Successor Link, helping it to build out its succession planning, business continuity, M&A and hiring capabilities.
Succession Link is a networking and communication platform with 72,000 members. It connects financial professionals who are interested in buying, selling, or merging their businesses.
The hook-up with Succession Link also speaks to the amount of wealth sector consolidation under way. A number of wealth management groups themselves, such as Florida-headquartered Dynasty Financial Partners, have built out M&A and advisory offerings and an investment bank for advisors looking to bulk up with acquisitions or sell up. Chicago-headquartered Hightower Advisors, to give another case, helps to facilitate transactions for other wealth firms – see a case here.
“As more advisors are retiring faster than new ones are joining the profession, there's an increased urgency to enhance succession planning solutions within the independent sector,” Private Advisor Group said in a statement yesterday.
The firm cited a 2023 J D Power study, showing that the average age of US financial advisors is 56, and 20 per cent of them are within five years of retirement. A recent Cerulli Associates report noted that nearly 40 per cent of financial advisors in the US plan to retire by 2030, with 26 per cent unsure of their succession plans.
"Navigating unforeseen events and ensuring continuity is a challenging but essential part of our work with advisors and their families,” Donald Stahl, Private Advisor Group's head of sales and solutions, said.
Private Advisor Group already offers proprietary programs including its Advisor Protection Program, Alignment & Equity Program, and consulting services. The firm, which was founded in 1997 in Morristown, New Jersey, has more than $31.5 billion in assets under management as of December 31, 2023.
