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Summary Of North American Wealth Management M&A – April, May 2023

Editorial Staff June 13, 2023

Summary Of North American Wealth Management M&A – April, May 2023

Following a dramatic month of March, with the Silicon Valley Bank and Credit Suisse/UBS deals, the industry might have expected a calmer period. Well, up to a point. A number of large deals were done. Among the highlights was CI Financial's divesture of a stake in its US wealth arm.

TMI Holdings
Atlanta-based TMI Holdings intends to merge with Argent Financial Group. The deal – the financial terms of which were not disclosed – is subject to clearance from regulatory authorities and TMI stockholders.

Financial Resources Group, Jacobian Wealth Advisory 
Financial Resources Group Investment Service, the largest enterprise in the LPL Financial empire, partnered with Jacobian Wealth Advisory, a business based in Illinois. Weber, who founded Jacobian in 2019, is registered under LPL Financial, the independent broker-dealer. Jacobian is reported to have served over $100 million in advisory, brokerage and retirement plan assets.

CI Financial
CI Financial, the Toronto-headquartered financial group which has bought scores of US wealth management firms in recent years, closed its previously-announced sale of a 20 per cent minority investment in its US wealth management business. The stake was sold to institutions including a wholly-owned subsidiary of the Abu Dhabi Investment Authority, Bain Capital, Flexpoint Ford, Ares Management funds, the State of Wisconsin, and others for about C$1.34 billion ($1.0 billion).

CI Financial agreed to sell a minority stake in Congress Wealth Management to Audax Private Equity.  Boston-headquartered Congress, led by president Paul Lonergan, serves clients across the US. Besides its Boston office, it has offices in six other cities.

Merit Financial Advisors, Planned Futures 
Merit Financial Advisors, based in Atlanta, Georgia, partnered with Planned Futures, a business based in Williamsport, Pennsylvania overseeing about $460 million in client money. Planned Futures provides investment management and retirement planning strategies for state employees and mass-affluent clients. The firm is led by James Arnold and John Keene, Jr, who assumed new roles at Merit as regional directors and partners. They are joined by their team of more than 10 professionals.

Allen & Overy 
UK-based Allen & Overy and US-headquartered Shearman & Sterling merged to build a law firm powerhouse under the new moniker of Allen Overy Shearman Sterling – A&O Shearman for short. The combined firm has about 3,900 lawyers and around 800 partners across 49 offices.

AlTi Tiedemann Global, AL Wealth Partners 
Nasdaq-listed AlTi Tiedemann Global acquired Singapore’s AL Wealth Partners. The deal came a few months after AlTi Tiedemann Global was born out of the merger of US-based Tiedemann Group and London’s Alvarium. The combined organization oversees about $65 billion of assets under advice and administration. ALWP was founded in 2007 by entrepreneurs Anthonia Hui and Leonardo Drago to focus on the needs of UHNW individuals and family offices.

FNTC America, PCS 
FNTC America, an IQ-EQ Group company that serves the US timeshare industry, bought PCS Holdings, the title agency affiliated with Eck, Collins & Richardson, a timeshare foreclosure and closing firm. PCS provides title, closing, escrow and related timeshare inventory services to ECR’s clients. In addition, FNTCA and ECR have entered an arrangement that allows both parties to provide seamless title, trustee, foreclosure, escrow and legal services to their shared clients. IQ-EQ rebranded its US-based firms after a raft of acquisitions last year.

Rockefeller Capital Management 
Rockefeller Capital Management partnered with the Rockefeller and the Desmarais dynasties as long-term strategic investors. The arrival of the Desmarais family into the RCM fold saw a prominent Canadian family becoming involved in the business. The Desmarais family took a 20 per cent stake in the firm, and acquired two board seats, in exchange for a capital investment of $622 million. As part of the transaction, the Rockefeller family increased its investment in Rockefeller Capital Management. Viking Global Investors remained the majority owner of RCM and there is no targeted end date for its involvement.

Welcy Capital Advisors, Dynasty 
Miami, Florida-based Welcy Capital Advisors joined the network of Dynasty Financial Partners. Welcy, which concentrates on the Latin American market, is well versed in navigating new rules, requirements, and restrictions in the international trading space. The firm has two advisors: Nicolas Zalles and Philip Henriquez. Welcy Capital Advisors chose Charles Schwab for custody.

Pinnacle, Investment Management of Virginia
Pinnacle Associates bought Investment Management of Virginia, a registered investment advisor managing about $580 million of assets for high net worth individuals and institutions.
The terms of the deal were not disclosed.

Savant Wealth Management, Domani Wealth 
Savant Wealth Management bought Domani Wealth, another RIA. In business for more than 25 years, Domani, which is based in Lancaster, Pennsylvania, has four offices throughout Central Pennsylvania. It has 23 employees and $1.53 billion in assets under management (as of April 28). The transaction, the financial terms of which were not disclosed, is Savant’s fourth acquisition this year. As a result, Savant’s footprint will expand to 32 offices in 11 states, including five in Pennsylvania.

Cresset Asset Management, TRUE Capital Management
Cresset Asset Management merged with TRUE Capital Management, forming a multi-family office with nearly $33 billion in assets under management (as of May 2 this year). 

Following the deal, Cresset expanded its presence in the sports and entertainment industry due to TRUE’s involvement in this space. TRUE, which managed $1.7 billion as of February 22, looks after over 350 clients, including Deandre Ayton, Robert Griffin III, Marshawn Lynch, Nneka Ogwumike, Kelsey Plum, Albert Pujols, Logan Ryan, Richard Sherman, Breanna Stewart, and Diana Taurasi.

Modern Wealth Management
Modern Wealth Management, a national registered investment advisory firm, bought the assets of Barber Financial Group, Osiwala Financial Group, and Financial Security, with offices across Kansas, Missouri and Michigan. Alaris Acquisitions advised Modern Wealth and Barber Financial on the transaction. Terms of the deal were not disclosed. Barber Financial Group was established in 1996 by CEO Dean Barber. The firm evolved into a team of 50 employees including CFP® professionals, CPAs, estate and insurance specialists, all of whom joined Modern Wealth as a result of the acquisition.

MAI Capital Management, Wiener Financial Management
MAI Capital Management, based in Cleveland, Ohio, bought Wiener Financial Management, a business based in the Washington DC area. The acquisition, the financial terms of which were not disclosed, added about $120 million in assets under management. Founded in 1995 by Bruce Wiener, WFM is headquartered in Potomac, Maryland.

Steward Partners Global Advisory, The Valencia Group 
Steward Partners Global Advisory welcomed The Valencia Group. The business consists of managing directors and wealth managers James Forsyth and Steven Miller, CFP. They are based in the Los Angeles metropolitan area. Located in Valencia, California, the team has about $200 million in assets under management and was formerly affiliated with UBS.

Beacon Pointe Advisors, YorkBridge Wealth Partners 
Beacon Pointe Advisors completed its largest acquisition so far in 2023, partnering with YorkBridge Wealth Partners, an RIA with offices in New York City and Bridgehampton. The deal took Beacon Pointe over the $26 billion mark for assets under advisement. YorkBridge, which was founded i n 2016, oversees more than $1 billion in assets within the New York metropolitan area. 

Carson Wealth, Integrated Wealth
US-based Carson Wealth partnered in an equity deal with Overland Park-based Integrated Wealth, a business with $400 million in assets under management, serving more than 250 families in 30 states. The business was started by Jack Lindsey in 1984 and now has a team of advisors: Craig Splan CFP, Tray Wiltse and Bill Day. Operational staff are Katie Hampton, Kim Roberts and Vincent Long.

Silverberg Wealth Management
Silverberg Wealth Management, from Westlake Village, California, joined NWF Advisory Group, part of Advisor Group, the US network. NWF, headquartered in Los Angeles, affiliated with Royal Alliance (which in turn works with Advisor Group). The three former Cetera advisors brought $212 million in client assets to the Advisor Group network.

Prospera Financial Services, Howell Wealth Advisors 
Prospera Financial Services, a US firm which supports independent advisors, associated with Howell Wealth Advisors. Managing director Josh Howell leads the two-member team, which oversees about $215 million in client assets and is based in Punta Gorda, Florida. Howell Wealth Advisors became an independent firm in 2014 as Howell Wealth Management. Prospera was founded in 1982.

Brownhelm Capital, Pecunia Management
Ohio-based family office Brownhelm Capital took a “substantial” stake in Pecunia Management, a holding company for a range of investment and financial services firms. The financial terms of the deal were not disclosed. The transaction happened after Pecunia’s owners won the necessary regulatory clearance. Pecunia is the holding company for International Assets Advisory, Primus, International Assets Investment Management and Global Assets Advisory. Under the terms of the agreement, the entire management team remained intact with Ed Cofrancesco continuing as CEO of Pecunia and all of its operating entities.

EP Wealth Advisors, Lehman & DeRafelo Financial Resources
California-based EP Wealth Advisors acquired Pennsylvania-based Lehman & DeRafelo Financial Resources. The acquisition was expected to add over $1 billion to EP Wealth’s assets under management. Lehman & DeRafelo’s principals Rich DeRafelo and Ron Lehman each assumed the role of regional director, while Jeff Lehman became a senior wealth advisor. In total, four advisors and two support staff joined EP Wealth.

Mercer Global Advisors, Andesa Financial Management
Mercer Global Advisors acquired Andesa Financial Management. Andesa is located in Allentown, Pennsylvania, serving 260 clients with assets under management of around $330 million. It was founded in 2004 by a team including Paul C Barbehenn, principal, and later joined by Michael C Baittinger, principal, in 2006.

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