This edition of the Deals & Recruiting Roundup covers KKR agreeing to acquire Janney Montgomery Scott, Waverly Advisors acquiring River Capital Advisors, Bluespring Wealth Partners acquiring Shelton Financial Group, Crestline Investors lending to Credent Wealth Management, Alpha Capital Family Office recruiting from Citi Private Bank, LPL Financial recruiting from Osaic, Avantax recruiting from LPL, Savvy Advisors hiring six more wealth managers, the Pearl Diver Credit Company closed-end CLO fund launching, Elevation Point hiring Bradford Smithy and Robert Tamarkin, and Morgan Stanley’s investor survey finding bullish sentiment persisting into the third quarter.
Larry’s Take

Recent M&A trend reports from ECHELON Partners and Fidelity both suggest that deal activity is bouncing back and could surpass last year’s levels, albeit with some caveats that warrant serious consideration instead of manic celebration.
ECHELON Partners found that, although M&A deal volume among RIA firms declined for the second straight quarter, the annualized deal total for the first half indicates that the industry is on pace for a 3.4% increase compared to 2023.
Meanwhile Fidelity found 54 RIA M&A deals and $230 billion in purchased assets in 2Q, which is over three times the purchased assets in 2Q 2023. Fidelity also found that private equity backed 95% of June’s transactions and 96% of its purchased assets.
This indicates that strong and sustained PE activity may be causing deal value to grow much faster than deal volume, and that PE has come to dominate wealth management M&A in the non-wirehouse space. The M&A deals covered in this week’s roundup reflect the latter point.
If you would like to discuss this Larry’s Take further, including how these trends might impact your business, please contact me at larry.roth@rlrstrategicpartners.com.
Mergers & Acquisitions
1. KKR Agrees To Buy $150 Billion Janney From Penn Mutual

Global investment firm KKR agreed to acquire Janney Montgomery Scott from The Penn Mutual Life Insurance Company. Janney has over $150 billion in assets under administration across more than 900 financial advisors and 135 offices nationwide. The transaction is expected to close in the fourth quarter, when Janney will become a standalone private company and continue to operate independently.
KKR’s investment in Janney is occurring mainly through its North America Fund XIII. Post transaction, KKR plans to support Janney in creating an equity ownership program that gives the company’s 2,300 employees the opportunity to receive ownership stakes. Since 2011, more than 50 KKR portfolio companies have provided billions of dollars of total equity value to over 100,000 non-senior management employees.
“We are excited to enter this next chapter in our nearly 200-year history with a new value-added strategic partner. KKR has demonstrated they value our client- and advisor-centric culture and share our deep conviction in the tremendous opportunities ahead for our business,” said Tony Miller, President of Janney. “We look forward to working with KKR to invest further in our growth and enable our talented team to further improve the advice and services we offer our clients.”
2. Waverly Acquires $293 Million River Capital Advisors In Florida

Birmingham, Alabama-based Waverly Advisors acquired Jacksonville, Florida-based River Capital Advisors, which had over $293 million in assets under management (AUM) as of its April SEC ADV filing. River Capital, which is led by its President, Robert Simon, was founded in 1998 as a subsidiary of the CPA firm Smoak, Davis & Nixon.
The is Waverly’s 15th transaction since receiving an equity investment in December 2021 from Wealth Partners Capital Group and HGGC’s Aspire Holdings platform. Waverly provides investment management, financial planning and wealth management solutions for high net worth individuals, corporate retirement plans and institutional clients. The fee-only RIA manages approximately $12.5 billion in assets.
“Rob and his team are a dynamic group, hungry to grow and dedicated to their clients’ financial well-being,” said Justin Russell, President of Waverly. “We are thrilled to welcome them to the Waverly family.”
3. Crestline Lends Over $50 Million To Credent, To Boost Advisor Affiliation And M&A

Auburn, Indiana-based Credent Wealth Management, an RIA with $2.6 billion in assets, received over $50 million in debt financing capital from Fort Worth, Texas-based Crestline Investors, an alternative investment manager with $18 billion in AUM as of Dec. 31. The capital will support Credent’s growth and development initiatives.
These include funding additional M&A, investing in human capital to support expansion, and further developing the Credent Advisor Solutions platform that allows advisors to run their own firm with more support from the Credent shared services team or to join Credent’s RIA as an independent advisor. Credent has acquired 12 RIAs in the past six years. ECHELON Partners served as Credent’s exclusive financial advisor on the transaction.
“The collaboration with Crestline allows us to continue our growth trajectory, accelerate investment in the business, and expand our national presence while maintaining our commitment to exceptional client service and to building a forever firm owned by our advisors,” said David Hefty, CEO of Credent Wealth Management.
4. Kestra’s Bluespring Acquires $500 Million Shelton Financial In Indiana

Bluespring Wealth Partners, a subsidiary of Kestra Holdings, acquired Fort Wayne, Indiana-based Shelton Financial Group and transitioned the company’s investment business to Bluespring’s affiliated wealth management platform, Kestra Financial. Shelton oversees nearly $500 million in client assets.
President Jeff Shelton founded his company in 1996 and leads a 13-member team. Shelton Financial creates financial planning solutions, multi-generational legacy plans and strategies for faith-based investments. Kestra Holdings, which has approximately $117 billion in assets under advisement, is majority-owned by Warburg Pincus and minority-owned by Oak Hill Capital, both PE firms.
“We’re pleased to have Shelton join our network of high-performing firms,” said Stuart Silverman, Chairman of Bluespring. “Supporting teams as they transition into new phases of their business is an important part of our mission, and we look forward to helping the team at Shelton build for its next generation.”
Advisor Transactions
5. Alpha Capital Family Office Recruits Duo Who Oversaw $3 Billion At Citi

Greenwood Village, Colorado-based Alpha Capital Family Office recruited Alexandra Romeo Boyles, J.D., as Senior Wealth Strategist and Partner, and Will Coughlin as Senior Investment Strategist and Partner. Most recently, they worked at Citi Private Bank overseeing more than $3 billion in assets for ultra-high net worth clients including family offices, entrepreneurs, business owners, endowments, foundations and nonprofits.
Before Citi, Boyles was a Vice President and UHNW Private Banker at J.P. Morgan. Before Citi, Coughlin was an advisor in the Private Wealth Management Division of Goldman Sachs. In April, Alpha Capital hired Tom Riley from Northern Trust as Head of Portfolio Management. Alpha Capital provides business consulting, asset management and planning, risk management and asset protection, estate planning, family governance and philanthropy planning.
“Our choice to work with fewer than 50 families empowers us to serve as their dedicated outsourced family office,” Boyles said. “Alpha is independent, which means I can deliver the most competitive opportunities, regardless of where they come from – and I now have direct access to opportunities curated specifically for those clients,” Coughlin said.
6. LPL Onboards $1 Billion Team Of 22 Advisors From Osaic

LPL Financial onboarded Eatontown, New Jersey-based Investment Advisors Financial Group, which serves approximately $1 billion in assets. The team joins from Osaic. They provide investment and insurance strategies for retirement planning, estate planning, saving for children’s education and more.
Thomas Musumeci founded the group in 1979. He leads the team of 22 advisors and eight associates and administrative staff with his daughter, Annie Silvestro, and James Flannery, both Vice Presidents. Musumeci’s son, Tom, also is a top-producing advisor in the practice.
“We welcome Thomas, James, Annie and the entire Investment Advisors Financial Group to LPL and look forward to supporting the continued growth and evolution of their firm,” said Scott Posner, LPL Executive Vice President, Business Development. “At LPL, we applaud their strategic and team-focused approach to helping their clients work toward their financial objectives, and we are proud to support them with differentiated technology, business solutions and innovative wealth management platforms designed to create a heightened client experience.”
7. Savvy Hires 6 More Wealth Managers, Reaching 30 Advisors In Total

Savvy Advisors, an RIA affiliated with the digital-first, multi-custodial technology platform Savvy Wealth, hired six more wealth managers. Savvy Advisors now employs 30 wealth managers who collectively oversee more than $700 million in client assets. In June, Savvy Advisors also hired four wealth managers.
Cincinnati-based Brad Morgan joins from Mariner Wealth Advisors. Detroit-area-based Alex Austin joins from Insight Wealth Strategies. Austin, Texas-based Brian Boswell joins from Oakwell Private Wealth Management. Denver-based Colin Farr and Michaela Sullivan join from Charles Schwab. Hawthorne, California-based J. Nick McLaughlin also serves as Director of Fundraising at Wiseburn Education Foundation.
“By continuing to grow our team of advisors, Savvy is increasing our opportunity to deliver an outstanding experience to clients nationwide,” said Ritik Malhotra, Founder and CEO of Savvy Wealth. “I’m energized by our ability to deploy AI technology and support services that independent advisors need to dramatically expand their businesses.”
8. Avantax Brings On $300 Million Noble Oak Financial From LPL

Avantax, a tax-focused financial planning and wealth management unit of Cetera Holdings, brought on Augusta, Georgia-based Noble Oak Financial, which was founded by financial advisors Josh Linton and Mike Koltz. They join with their Director of Operations and Client Services, Danielle Boutwell.
The team, which previously was affiliated with LPL, had approximately $300 million in assets under administration as of December. Avantax also recently added Hauppauge, New York-based S&P Financial Services, which had approximately $150 million in assets under administration as of June. Avantax and its subsidiaries had $92.8 billion in assets under administration as of Dec. 31.
“We’re honored that Josh and Mike chose Avantax as part of their decision to go independent, and we’re eager to support their new journey,” said Laurie Stack, Vice President, Business Development at Avantax. “Longer term, I’m excited to see Josh, Mike and Danielle grow Noble Oak Financial by building on their experience as trusted financial professionals for the Augusta community.”
Strategic Partnerships
9. Pearl Diver Credit Company, A Closed-End CLO Fund, Launches On NYSE

Pearl Diver Credit Company, a closed-end fund devoted to developing collateralized loan obligation (CLO)-based investment strategies, recently debuted on the New York Stock Exchange under the ticker PDCC. Pearl Diver Capital, an independent alternative credit specialist based in New York and London, will act as the external investment adviser.
PDCC’s initial public offering follows a boom in credit-based investments aimed at retail investors over the last couple of years. It is seeking to raise $44 million. Kingswood Capital Partners is acting as the sole bookrunner for the offering.
In a release, the company said it “will provide registered investment advisers (RIAs), family offices and other firms serving high net worth and ultra-high net worth investors with an opportunity to gain access to sophisticated, alternative credit strategies that have historically only been accessible by pensions, endowments and other institutional investors.”
Promotions & People Moves
10. Elevation Point Expands Leadership Team With Bradford Smithy, Robert Tamarkin

Minneapolis-based Elevation Point, a wealth management firm that also serves as an investor and partner for RIAs and advisors seeking independence, hired Bradford Smithy and Robert Tamarkin as Founding Partners. Jim Dickson and Mark Penske launched the firm in June with more than $3.4 billion in AUM.
Smithy has over 30 years of industry experience and previously spent more than 15 years at UBS, including as Divisional Director. Tamarkin spent almost 20 years at UBS, most recently as the Market Director for the Southeast Market. Dickson founded Sanctuary Wealth and before that spent 20 years as a senior divisional executive for Merrill Lynch. Penske is CEO and Chairman of United Atlantic Capital, and before that worked for Citigroup’s Smith Barney.
“I am proud to join Elevation Point, which has the ideal leadership team and a new innovative model for driving the transformation of our industry,” Smithy said. “Our innovative partnership model isn’t just about fees or platforms; it’s about providing growth through capital and expertise – and engaging in genuine collaboration to empower and elevate our partners in this new era,” Tamarkin said.
Wirehouse Activity
11. Morgan Stanley Investor Survey Finds Bullish Sentiment Persisting Into 3Q 2024

Morgan Stanley Wealth Management’s quarterly individual investor Pulse Survey found that 61% of investors are bullish this quarter, slightly above the 60% who were last quarter, and that 59% investors predict the market will rise by the end of the third quarter. Fifty-four percent of investors cited their primary concern as inflation, 34% cited the 2024 election, 22% cited market volatility and 20% cited the prospect of a recession as their main concern.
The online survey was conducted from July 1 to July 16 among a U.S. sample of 891 self-directed investors, investors who fully delegate investment account management to financial professionals and investors who utilize both approaches.
“It’s understandable to see bullishness remaining steady this quarter as the market pushed higher driven by mega-caps,” said Chris Larkin, Managing Director, Head of Trading and Investing, E*TRADE from Morgan Stanley. “On the flipside, the narrow market could make some traders jittery especially when compounded by a higher for longer rate stance from the Fed. So, it’s easy to see how investors can have mixed emotions about where we stand when it comes to the market and the economy.”
Chris Latham, Managing Editor at Wealth Solutions Report, can be reached at clatham@wealthsolutionsreport.com.