Modern Wealth Management, a registered investment advisor based in Monterey, Calif., has surpassed $8.5 billion in assets under management by acquiring a $1 billion RIA in its home state.
Kaye Capital Management, a fee-only RIA with over $700 million in AUM and $300 million in assets under advisement, will join Modern Wealth as the fourth acquisition of 2025 and the 17th since its founding in 2023. The firm was created by former United Capital executives Jason Gordo, Mike Capelle and Gary Roth and launched with $200 million in backing from private equity firm Crestview Partners.
KCM is based in El Segundo, Calif., and focuses on financial planning, investment management services and an institutional retirement plan business. The firm, which will now take on the Modern Wealth brand, was founded in 2000 by Ken Watten and David Hilton and has clients that include corporate executives, film directors, entrepreneurs, attorneys, physicians and writers.
Gordo said Modern Wealth “literally ran into” the chance to acquire KCM. Jacqueline Ferdowsi, vice president of partnership development for Modern Wealth, was in line at Los Angeles International Airport wearing a vest with the Modern Wealth logo when KCM founder Hilton said he knew the firm and had worked with Gordo in the past.
“He said to her, ‘We are bringing our team to market in the next few months,’” Gordo said.
From there, the firms met to discuss a potential deal. Gordo and Modern Wealth leadership liked how KCM had built its wealth management practice alongside a separate but linked workplace retirement plan practice. KCM, meanwhile, was looking for a growth partner that could help it refocus on clients and growth rather than back office, compliance, human resources and the other obligations of running a firm.
“A lot of advisors wanted to get back to the things they love, which is … really solving financial problems for people and exposing them to ways they can live their best life,” Gordo said. “That’s why they were looking for a partner, and that’s what firms like ours do—we create growth capacity in advisors’ calendars.”
As part of joining the firm, KCM will gain access to Modern Wealth’s “Organic Growth Hub,” which works on lead generation, distribution, client onboarding and general business services.
Hilton and Watten will be managing directors at Modern Wealth, remaining what Gordo called the North Star of the office, responsible for clients, advisor mentoring and growing the business.
That work will include further building its workplace retirement plan business and sharing the expertise across Modern Wealth. KCM’s institutional retirement plan business works with over 400 companies with 50 to 1,000 employees, servicing 401(k)s, 403(b) non-profit plans and 529 educational plans.
Modern Wealth launched its institutional plan business in March 2024 with the acquisition of Beltz Ianni, which brought on Michelle Cannan, now the RIA’s head of company retirement plan services.
Gordo likes the separate but linked wealth and retirement plan practices model. On the retirement side, the business tends to be “sticky” and grows in the long term as employees and employers invest in the plan. On the wealth side, the relationships can provide opportunities at the C-suite and down into the employee base.
“It’s a beautiful business when done correctly,” Gordo said. “Employers also love it. You’re able to do more for their employees in terms of good financial education, holding workshops and teaching them the value of long-term savings and investing. Hopefully, they’ll have better retirements because of it.”
The deal is Modern Wealth’s third in California this year, following the acquisitions of Wade Financial Advisory and Planned Asset Management.
Gordo said there will be more, larger deals in 2025 as Modern Wealth nears $10 billion in assets.
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