Parsippany, New Jersey-based Summit Financial Holdings, in partnership with its backer, Merchant Investment Management, announced the acquisition of a significant equity stake in the wealth management division of Meeder Investment Management. The deal closed in the second quarter.
Dublin, Ohio-based Meeder Wealth Management has approximately $400 million in assets under management (AUM). The Meeder division started over 50 years ago. It provides personalized financial planning, as well as investment management services to high net worth and mass affluent clients, retirement plan solutions and corporate investment solutions.
“For these types of firms, which share a passion for growth while upholding a client-first mentality, Summit is a natural fit,” said Stan Gregor, CEO of Summit Financial.
Other Meeder Investment Management business lines, such as its Public Funds and Advisory Consulting divisions, were not part of the transaction.
As a result of the deal, Meeder Wealth Management will have access to SummitVantage, Summit Financial’s proprietary, integrated platform that provides single sign-on technology; financial planning, investment and insurance services; as well as support in practice management, human resources, operations and compliance. It also will be able to tap financial planning, insurance and investments experts at Summit Financial.
Meeder Wealth Management will retain its branding and entire team, which consists of President Jason Click, Vice President Mike Saraullo, Senior Wealth Advisors Mike Miller and Ryan Johnson, Senior Wealth Coordinator Tricia McDermott and Wealth Coordinator Sara Story.
Breakaway and other independent advisors who join Summit’s RIA can maintain full ownership of their businesses, according to the firm.
“Having focused on the institutional side of our business, we needed to determine the future direction of our wealth management division,” said Bob Meeder, President and CEO of Meeder Investment Management.
“We considered several options: maintaining the status quo, investing to build it out ourselves, or finding partners to help elevate our wealth management business to become a national RIA,” he said. “We decided to find the right partners, and selected Summit Financial and Merchant.”
The goal is to build a multibillion dollar business with partnerships across the U.S., Meeder said.
In June, Summit Financial helped launch SRM Private Wealth in Pasadena, California. SRM was founded by Managing Partner and Private Wealth Advisor Richard McWhorter, who broke away from Merrill Lynch, where he attracted over $1.9 billion in AUM. He was joined by Partner and Director of Client Services Sandra Parracino and Client Associate Kyle Szesnat.
SRM selected Goldman Sachs Custody Solutions as its primary custody provider. It was the 11th firm this year to join Summit Growth Partners (SGP), Summit Financial’s partnership model that combines cash monetization with equity participation and exclusive partnership privileges.
Jeff Berman, Contributing Editor and Reporter at Wealth Solutions Report, can be reached at jberman@wealthsolutionsreport.com.
