Recruitment Roundup: Integrated Partners, Stifel, Hightower, Allworth And More

Chris Latham, Managing Editor, Wealth Solutions Report

Integrated Partners Recruits PRISM, NewEdge Exceeds $40 Billion, Prospera Expands Footprint, Stifel Recruits Across 3 States, Hightower Facilitates Sub-Acquisition, Mercer Acquires Private Asset Management, Burney Adds Goldman For Custody, CI Private Wealth Rebrands As Corient And Allworth Co-Founders To Step Down As Co-CEOs

This edition of the Weekly Recruitment Roundup features Integrated Partners recruiting PRISM Financial Strategies, NewEdge Capital Group exceeding $40 billion on a recruitment surge, Prospera expanding its national footprint by recruiting three new firms with $539 million, Stifel Independent Advisors recruiting advisors with $673 million across three states, Hightower facilitating its fifth sub-acquisition for Fairport Wealth, Mercer acquiring $720 million Private Asset Management, Burney Company adding Goldman Sachs as a custody provider, CI Private Wealth rebranding as Corient, and Allworth Co-Founders Scott Hanson and Pat McClain stepping down as Co-CEOs.

Advisor Transactions

1. Integrated Partners Recruits $225 Million PRISM Financial Strategies

Waltham, Massachusetts-based Integrated Partners recruited Englewood, Colorado-based PRISM Financial Strategies, an RIA overseeing approximately $225 million in client assets. Managing Partner and Financial Strategist Jeff Engelman leads PRISM’s seven-person team.

Paul Saganey, President and Founder, Integrated Partners

Integrated Partners serves over $15.5 billion in brokerage and advisory assets, with more than 200 advisors, 170 CPAs and 116 regional offices nationwide. In May, the firm recruited two Bloomfield Hills, Michigan-based teams as affiliate partners, Wealthcare Management Services and JMB Financial Services Group, which collectively oversee more than $500 million in assets.

“From the moment we met Jeff and his team at PRISM, it was clear that our values and principles were remarkably well-aligned. Likewise, PRISM also recognized our strong compatibility,” said Paul Saganey, President and Founder of Integrated Partners. “Their growth-forward, client-focused approach perfectly embodies the qualities we seek in a partner, and we are enthusiastic about providing our support.”

2. NewEdge Capital Group Exceeds $40 Billion As Recruitment Surges

Pittsburgh-based NewEdge Capital Group announced that, as of June 30, its total client assets serviced exceeded $40 billion, largely as a result of recruitment efforts, and it is on track to exceed record recruitment and asset growth set in 2022, when it recruited $9.1 billion in expected assets under management (AUM).

Alex Goss, Managing Partner, NewEdge Capital Group and CEO & Co-Founder, NewEdge Advisors

The firm, which is the wealth management business unit of EdgeCo Holdings, serves more than 300 financial advisors who collectively oversee more than 75,000 client accounts. In the first half, its NewEdge Wealth subsidiary opened three offices and recruited seven advisors. In the first half of the year, its NewEdge Advisors subsidiary brought on 39 advisors across 16 teams with offices in 12 states.

“The first six months of this year serve as a testament to the value of our range of affiliation models and unparalleled advisor support for wealth managers who want a partner for growth,” said Alex Goss, Managing Partner of NewEdge Capital Group and CEO and Co-Founder of NewEdge Advisors. “The entire NewEdge team is extremely proud to serve as this partner to incredible and successful advisors from across the country.”

3. Prospera Expands National Footprint With Three New Firms, Adding $539 Million

Dallas-based broker-dealer Prospera Financial Services announced the recruitment of three firms across four states with a total of $539 million in AUM: G4 Wealth Management of Paradise Valley, Arizona, with $320 million; East Coast Capital Management, based in Boston and Fort Lauderdale, Florida, with $130 million; and Paraclete Wealth Consultants of Lamar, Colorado, with $89 million.

Tarah Williams, President & COO, Prospera Financial Services

According to a Prospera spokesperson, the newly recruited firms emphasized its advisor support, and advisor to home office staff ratio of 2.4:1, as important to their decision to affiliate. The firm increased its revenue by 113% over the past five years. Prior to the announcement, Prospera supported 163 advisors in 94 locations nationally with $16 billion in AUM.

“Over the past several months, we have seen significant consolidation among mega firms in our industry, leaving many advisors asking if there is a different path to build their businesses,” said Tarah Williams, President and COO of Prospera. “We strive to provide our advisors with personalized services and support so they can grow their practice their own way.”

4. Stifel Independent Advisors Recruits $673 Million In Utah, Florida And New Jersey

St. Louis-based Stifel Financial announced that its subsidiary, independent channel broker-dealer Stifel Independent Advisors, recruited three firms in the second quarter of this year with a total of $673 million in AUM.

Alex David, President & CEO, Stifel Independent Advisors

ARC Wealth Management from Salt Lake City, Utah; BT Legacy Wealth Management from St. Petersburg, Florida; and Client First Financial from Colts Neck, New Jersey each will be a flagship office of Stifel Independent Advisors, and the first in their respective states. Their combined assets raise the total AUM for Stifel Independent Advisors to over $6.5 billion.

“This is an exciting time for the industry, and for elite independent wealth management teams looking to partner with an independent broker-dealer that offers the resources of a globally recognized investment bank,” said Alex David, President and CEO of Stifel Independent Advisors. “As members of a network of advisors located across the United States, our newest teams will soon find they’ll be setting themselves apart with exceptional support that begins with comprehensive guidance.”

Mergers & Acquisitions

5. Hightower Facilitates Fifth Sub-Acquisition For Fairport Wealth, Adding Wealth CMT

Chicago-based Hightower Advisors facilitated its fifth sub-acquisition for Cleveland-based Fairport Wealth, with the addition of Wealth CMT in Cherry Hill, New Jersey. Wealth CMT brings $300 million in assets under management (AUM) to Fairport Wealth, which in turn raises its total AUM to $4.5 billion. As of June 30, Hightower had approximately $131 billion in AUM.

Bob Oros, Chairman and CEO, Hightower

Andrew Barnett and Eric Feder founded Wealth CMT in 2009. Its five employees serve more than 180 families and foundations. In May, Fairport Wealth appointed Mike Drennen, former Executive Director on the Advisor Engagement team of Hightower, as its new Chief Wealth Officer. In October, Hightower facilitated the sub-acquisition of Princeton, New Jersey-based Optimal Portfolio for Fairport Wealth, which added $102 million in AUM.

“As we continue to support Fairport Wealth with its own growth ambitions, we became excited for the opportunity with Wealth CMT,” said Hightower Chairman and CEO Bob Oros. “The firm’s reputation for creating strategic wealth planning solutions backed by timely and insightful guidance is consistent with Hightower’s values and growth focus.”

6. Mercer Acquires $720 Million Private Asset Management In San Diego

Denver-based Mercer Global Advisors acquired San Diego-based Private Asset Management (PAM), which has approximately $720 million in AUM and serves more than 600 clients with multigenerational wealth services including financial planning, investment management, tax planning and preparation.

Jeffrey S. Witt, CEO, Private Asset Management

Mercer has over $48 billion in client assets, more than 900 employees, and more than 70 offices nationwide. ECHELON Partners served as the exclusive financial advisor, and Withers Bergman served as legal counsel to PAM. In June, Mercer announced that private equity firm Atlas Partners would invest in the company in a transaction expected to complete in the third quarter of this year – joining Genstar Capital, Oak Hill Capital and over 300 Mercer employees as owners.

“PAM provides manifold services to its high net worth and ultra-high net worth clients, seeking to provide best-of-breed service to individuals and families including those with multigeneration wealth needs,” said PAM CEO Jeffrey S. Witt. “Once we began talks with Mercer Advisors and David Barton, Vice Chairman who heads up M&A for Mercer Advisors, we knew we had found the right partner with Mercer Advisors offering a full set of family office services under their large roof.”

Strategic Partnerships

7. $2.4 Billion Burney Company Adds Goldman Sachs As A Custody Provider

Reston, Virginia-based RIA Burney Company, with $2.4 billion in client assets, announced that it will add Goldman Sachs Advisor Solutions (GSAS) as a custody provider. Founded in 1974, Burney provides financial plans, retirement plans, personalized portfolios, investment management and wealth management advice.

Lowell Pratt, Jr., President & Chairman, Burney Company

The firm, which has worked with multiple custodians for decades, specializes in active equity strategies. Lowell Pratt, Jr., Burney’s President and Chairman, said that GSAS will broaden his firm’s ability to build custom portfolios across other asset classes and that access to Goldman’s research will benefit Burney.

“Goldman Sachs provides us with the access and resources to differentiate our client experience to support sophisticated client needs,” said Pratt, who has 37 years of experience in wealth management. “Our relationship with Goldman will continue our 50-year legacy of delivering excellence to our clients.”

8. $147 Billion CI Private Wealth Rebrands As Corient

CI Private Wealth, a subsidiary of Toronto-based CI Financial Corp., rebranded as Corient – a name that originated with one of the company’s legacy firms. The U.S. wealth management business has $147 billion in AUM. CI Financial entered the U.S. RIA sector in 2020. The company discontinued co-branding with its legacy firm names, and Corient is now the brand for all of its offices. The Corient brand name stands for “client oriented.”

Kurt MacAlpine, CEO, Corient and CI Financial Corp.

In late April, CI Financial agreed to sell its minority stake in Boston-based Congress Wealth Management, which had 64 staffers across offices in several U.S. cities and $5.1 billion in AUM, to Audax Private Equity. Two weeks later, CI Financial agreed to sell a 20% minority investment in its U.S. wealth management unit for approximately $1 billion to a group of institutional investors. In May, the wealthtech provider Riskalyze rebranded as Nitrogen and in June, the national independent broker-dealer network Advisor Group rebranded as Osaic.

“The Corient brand embodies our mission to put our clients at the center of everything we do. We exist for one reason: to help our clients achieve their financial goals, simplify their lives and establish legacies that will last for generations,” said Kurt MacAlpine, CEO of Corient and its parent company, CI Financial Corp. “The new name better reflects the extensive capabilities we offer today as a national, integrated organization and our vision to become the country’s preeminent private wealth firm.”

Promotions & People Moves

9. Allworth Co-Founders Scott Hanson And Pat McClain To Step Down As Co-CEOs

Folsom, California-based Allworth Financial’s Co-Founders Scott Hanson and Pat McClain will step down as Co-CEOs of the $18 billion RIA that they started in 1993. Executive search company Heidrick & Struggles will advise the firm on potential replacements, which may involve internal and external applicants.

Scott Hanson (left) and Pat McClain, Co-Founders and Co-CEOs, Allworth

Hanson will become Allworth’s vice chairman while McClain will continue leading the mergers and partnerships unit. They will continue with many of their other duties at the firm. These include serving clients, working with Allworth’s leadership team and creating the weekly Money Matters podcast.

Allworth serves approximately 23,000 clients across 34 offices in 18 states. Last month, the RIA acquired Waltham, Massachusetts-based The Harvest Group, which is run by the father-daughter team Roger and Laurie Ingwersen and has approximately $260 million in assets. Allworth also completed four previous acquisitions this year that brought in a total of more than $1.3 billion in assets.

Chris Latham, Managing Editor at Wealth Solutions Report, can be reached at clatham@wealthsolutionsreport.com

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