The latest analysis of the wealth management sector predicts that 20% of wealth and asset managers will be acquired in the next five years.
Weekly deal round-ups generally fit that narrative of consolidation—but this week muddies the water, with a number of large breakaways starting new RIAs.
First, WealthManagement.com reported on Elevation Point staking a UBS breakaway to start a multi-family office called Loxahatchee Capital, which manages $1.4 billion in assets.
That was followed by a new RIA, OpenArc, being created from a massive Merrill Lynch liftout of advisors managing $129 billion in assets. That firm is on the Dynasty Financial Partners platform, though Merrill Lynch had something to say about the move in court, calling the move a “premeditated corporate raid.”
For better or worse, this week’s round-up is more traditional, with no related lawsuits (yet) and further examples of the consolidation trend.
MAI Capital Management Acquires $612M Ohio Neighbor
MAI Capital Management, the Cleveland-based RIA in the process of completing a mega-merger, has, in the meantime, acquired a smaller firm with $612 million in assets.
J.W. Coons Advisors is headquartered in Columbus, Ohio, but also has an office in Naples, Fla. The firm, founded by James Coons in 2003, is focused on working with individuals, families and charitable organizations nationwide.
The RIA will take on the MAI brand, though its team, including principals Robert Hoffman and Keith Blankemeyer, will remain in place.
MAI is majority owned by Galway Holdings and has a minority investment from Wealth Partners Capital Group. Earlier this year, it announced a deal to acquire Evoke Advisors, which, once complete, will nearly double its client assets to $60 billion.
Turkey Hill Management advised Coons Advisors on its transaction.
Women-Led Team ArrowPoint Chooses Osaic
Co-founders Mandy Dollar, CEO, and Jennifer Wallis, chief growth officer, chose Osaic for their new firm, which has $379 million in AUM and offices in Oklahoma City and Edmund, Okla.
Dollar had been an advisor with MidFirst Bank, which uses Cetera for advisory services, and Wallis left Retirement Investment Advisors, according to BrokerCheck. According to the announcement, the two are “longtime friends” focused on “ethical, inclusive wealth management.”
Dollar is an accredited advisor in sports and entertainment, and Wallis has accreditation in behavioral finance.
“Mandy and Jennifer are building a firm that goes beyond investment management,” Kristen Kimmell, executive vice president of business development at Osaic, said in a statement. “They empower their clients with the education, confidence and trust needed to thrive financially and in all areas of their life.”
Cetera’s TRPG Acquires $400M RIA
Cetera’s employee-based RIA, The Retirement Planning Group, has acquired a $425 million AUM firm called HMC Partners. The Greensboro, N.C.-based firm had previously been affiliated with Summit Financial Networks, a community within Cetera Advisor channel.
HMC was co-founded by John Hardy and Gib McEachran in 2007, when the duo moved to a fee-based model. The firm now works with about 500 households. Hardy and McEachran said in a statement that the decision to move to TRPG was both to expand capabilities and bolster the firm’s succession plan.
The deal follows TRPG acquiring First Financial Advisors in August, which added more than $300 million in assets, and a deal earlier in the year for three acquisitions, which added $180 million in assets. A woman-led team called ArrowPoint Wealth Advisors has chosen to launch with independent broker/dealer Osaic, marking the second female-led group to join the broker/dealer this month.
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