Raymond James, Mariner, Baird, plus M&A records, a YUMY EFT and more access to digital assets

December 3, 2021 2:31 PM

VanEck, a passive and active investment management firm, has a delicious new ETF focused on the future of food. M&A deal volume reached a new all-time high, and that was with more than a month left to go in the year. New York University is adding a master’s degree in financial planning. And there was consolidation in the industry, as well as advisors and executives finding new opportunities. Scroll through to find what you might have missed this week in financial planning news.

New York University is launching an MS in financial planning degree program next fall. The downtown Manhattan-based university’s School of Professional Studies, Division of Programs in Business, will offer the 30-credit program full-time, part-time or online, aligning with CFP requirements. The degree has a focus on behavioral finance and financial analytics. “With millions of baby boomers retiring, as well as younger individuals, seeking new and innovative ways to manage their finances, the demand for financial planners who are capable of offering counsel that is data-driven, behaviorally focused,and immediately applicable, is on the rise,” noted Martin Ihrig, DBA, associate dean of the NYU SPS Division of Programs in Business.

RIA M&A deal volume in 2021 passed 200 just before the Thanksgiving holiday, marking the first time ever the number of transactions has reached that level in a single year, according to statistics from investment bank and consulting firm DeVoe & Co. While this year is the eighth in a row to set a record for volume, the high RIA valuations, succession planning, tax concerns and scale needs are pushing up the total for 2021 to an expected 45% increase above 2020 by the end of the year. More than 40% of the deals involve sellers with at least $1 billion in client assets, according to the firm’s CEO, David DeVoe. “Two hundred transactions with another month to go — 2021 is a whopper year for the record books,” DeVoe said in a statement. “Acceleration of activity is most pronounced among larger firms.”

Compliance firm

FIN Compliance

has launched a desktop and mobile app called the FIN Disclosure Center for delivery and recordkeeping of documents that RIAs, fund managers, robo advisors and fintechs provide to clients, staff, prospects and vendors. The software delivers Form ADV and other essential documents, collects them in one place and keeps an audit log of activities throughout every compliance process. FIN compliance has worked with more than 190 investment advisory firms in the past decade.

Baird added a billion-dollar team that dropped Merrill Lynch to join a branch of the employee brokerage in Greenville, South Carolina. Financial advisors Brian Hungerford, Dee Bingham, Lynn Garrick and Hunter Williams of The HBGW Group managed $1.2 billion in client assets with their prior firm. Baird’s Private Wealth Management unit spans more than 1,300 advisors with more than $255 billion in client assets at more than 160 branches in 33 states.

A pair of influential trade groups unveiled their respective annual awards to members of Congress. The Financial Services Institute, an organization advocating for independent brokerages and advisors, gave its 2021 Congressional Champion for Main Street Award to Sen. Tim Scott, a Republican from South Carolina, and Rep. Madeleine Dean, a Democrat from Pennsylvania. The trade group praised Scott’s work on the Secure Act 2.0 retirement and insurance bill and his criticism of employee benefits legislation it views as posing unintended consequences on independent contractors. FSI applauded Dean’s help in including a provision in the Department of Defense budget enabling remote online notarization and her support for financial literacy efforts over the years. The Insured Retirement Institute, an advocacy group for insurers and other retirement income firms, presented its Champion of Retirement Security Award to Sen. Ben Cardin, a Democrat from Maryland, and Sen. Rob Portman, a Republican from Ohio. The organization gave the two senators credit for their “efforts to advance legislative solutions to enhance retirement security for America's workers and retirees” in the Secure Act 2.0 bill.

FINRA’s former head of market regulation enforcement and litigation, Lara Thyagarajan, has joined the securities enforcement and regulatory practice group of the law firm Sidley Austin after 15 years with the regulator. She previously led a team of more than 70 attorneys and other officials, and she also once served as the chief counsel of FINRA’s New York region. “With the SEC, FINRA and several exchanges entering an aggressive pro-enforcement business cycle with a particular emphasis on market conduct and market manipulation cases, Lara is a timely addition to Sidley’s practice,” Neal Sullivan, a global co-leader of Sidley’s securities practice, said in a statement. “Her unique skill set will not only support our work with current clients but also help us continue to expand our industry-leading practice.”

Moneta Group Investment Advisors, one of the largest fee-only RIAs in the country, has hired the St. Louis-based firm’s first ever chief philanthropy officer, Deborah Dubin. Previously the CEO of Philanthropy Missouri, Dubin will lead the company’s charitable foundation spanning more than $443,000 in donations this year, its newly launched M-Power financial literacy program for high schools and wellness seminars, and its client portfolio solutions relating to charitable gifts and planning. “This is an exciting opportunity to pioneer a new position at Moneta, offering a service that is unique in the industry,” Dubin said in a statement. “I’m eager to help elevate Moneta and their clients’ charitable efforts from transactional to transformational, while acting in alignment with their personal values and identified community needs.”

Morgan Stanley's digital strategy focuses primarily on three areas: analytics, automation and new ways for clients to interact with the firm.

Morgan Stanley and Greenlight Financial Technology are teaming on a new service promoting financial literacy among children through a family money app and debit cards for kids. Morgan Stanley CashPlus brokerage account holders will receive free Greenlight subscriptions for lessons on money management for up to five children in any client household. “Many of our Morgan Stanley CashPlus account holders are families looking for a better way to manage their money while continuing to build long-term wealth for their family,” Paul Halpern, the head of deposits and banking services for the Morgan Stanley Private Banking Group, said in a statement. “Greenlight brings our clients a way to also teach their children about the world of money, ensuring the next generation has the knowledge and skills they need for a healthy financial future.”

Financial advisors Katherine and Edgar Parrish of McLean, Virginia-based fee-only RIA Precipio Wealth Management have folded into Mercer Advisors, adding a practice with $250 million in client assets to Mercer’s more than 55 nationwide. “While we have no present intentions to retire, we are at that stage when succession planning is top of mind,” Edgar Parrish said in a statement. “Katy and I searched to find a partner that was a cultural fit and would ensure continuity, and Mercer Advisors’ end client focus was a clear differentiator for us.” Private equity-backed Mercer has $36.5 billion in client assets and more than 630 advisors and employees.

The Connecticut office of Procyon Partners, an RIA using the Dynasty Financial Partners platform, has added former MML Investors Services representative Zoltan Pongracz, financial advisor Jake McCarthy and client service associate Mickey Herbert. The incoming practice managed $150 million in client assets with its prior firm, where it was part of the Barnum Financial Group. “This is the culmination of two years of due diligence and will allow me to truly sit on the same side of the table as my clients,” Pongracz said in a statement.

Private equity-backed RIA consolidator Mariner Wealth Advisors has agreed to make its 10th acquisition since July — a deal to acquire Phoenix-based Robinson, Tigue, Sponcil Private Wealth Management. The incoming RIA manages $390 million in client assets with a leadership team consisting of CEO David Robinson, President Keith Tigue and Chief Financial Officer Lisa Sponcil. The parties expect the deal to close Dec. 10. “Joining Mariner Wealth Advisors will provide our employees and clients with the scale and resources of a much larger firm, ultimately improving the financial outcomes we seek to achieve,” Tigue said in a statement.

Steward Partners, an independent RIA that uses Raymond James Financial Services as its primary broker-dealer, added new practices in Wisconsin, New Jersey, Maine and Virginia with more than $780 million in client assets in September and October. The largest incoming team is ex-Merrill Lynch practice O’Hare Wealth Management, a Mequon, Wisconsin-based practice with $420 million in client assets. The team has five staff members: managing directors John J. O’Hare II, John O’Hare III and Gerald Jones, along with vice presidents Amanda Sachs and Megan Roder.

Clear Perspective Advisors, a hybrid RIA that currently uses Ausdal Financial Partners as its broker-dealer, will join the private equity-backed RIA consolidator Hightower in a deal that’s expected to close in the fourth quarter. The incoming team led by advisors Michael Morcos, Jonathan Hylton and Stewart Beach operates from offices in Aurora and St. Charles, Illinois, where they manage $700 million in client assets. The firm has 10 staff members, including seven advisors. “Clear Perspective recently celebrated its 10-year anniversary, and after several years of strong organic growth, we knew that to continue on our growth path we would benefit from the support of a strategic partner that was culturally aligned with our values and client-first philosophy,” Morcos said in a statement.

Active and passive investment management firm VanEck launched a new ETF called the VanEck Future of Food ETF under the ticker symbol “YUMY.” Portfolio managers Shawn Reynolds and Ammar James run the fund, which has holdings in companies innovating at the intersection of food, agriculture and technology. The ETF has three areas of focus: food technology, precision agriculture and sustainability. “The growing global population and the concurrent threats from climate change are driving the need for more sustainable agri-food processes and technologies in order to provide for a future with more affordable, nutritious and safe food for all,” Reynolds said in a statement. “We are now in the early stages of a multidecade agri-food system transformation. Growth opportunities in this space currently exist, but the market remains nascent. A number of private firms appear poised to enter the public markets, and several established companies are pivoting their business models to embrace the future of food, so an active approach to stock selection will position YUMY and its investors to capitalize on emerging trends.”

Private equity-backed RIA consolidator Creative Planning has acquired former Raymond James Financial Services practice Dashboard Wealth Advisors, which has $890 million in client assets managed by a trio of financial advisors. Founder Scott Schuster launched the Oak Brook, Illinois-based firm in 2013, and he and Creative Planning CEO Peter Mallouk knew each other in grade school. “I’ve known Peter personally for over 40 years and have shared best practices with him and his firm, Creative Planning, since my firm’s inception,” Schuster said in a statement. “We’re excited to bring our clients into a firm with an exceptional culture as well as expertise and client focus.”

Aspiriant, an independent RIA, acquired San Diego-based practice HearthStone Private Wealth Management on Nov. 30. It was the buying firm’s fourth acquisition since 2015. The incoming practice has seven advisors and employees working with 150 households to manage about $350 million in client assets under CEO Paul Hynes. “When the time came to discuss a succession plan, there were several options available to us,” Hynes said in a statement. “While we know that PE firms are paying top dollar for advisory firms in the current environment, we feel strongly that independent ownership is synonymous with putting the needs of clients and employees first.” Aspiriant topped $15 billion in assets from 1,800 clients after the completion of the deal.

Insurer Equitable and 15 other financial firms and industry associations have launched the

Coalition for Equity in Wholesaling

, a new organization promoting education, recruiting and retention among Black professionals in the insurance wholesaler industry. The original members of the coalition include the Insured Retirement Institute, LIMRA, the National Association of Insurance and Financial Advisors, the American College of Financial Services, AIG, Brighthouse Financial, Nationwide, Pacific Life, Prudential and Securian Financial. In a partnership with the Association for Wholesaling Diversity, the coalition has launched a tuition-free career training program to get into the field. In addition, it’s collaborating with IRI on research to track the progress of the efforts over time across the workforce of wholesalers. “AWD works tirelessly to educate Black students and professionals about choosing financial services wholesaling as a career, plus our members, all of the industry’s Black wholesalers, network, mentor, coach and support each other via this community we’ve built,” Marlōn Hall, the president of the Association for Wholesaling Diversity, said in a statement. “This partnership naturally scales these efforts up, while providing a roadmap for the Coalition’s broader attraction, retention and networking efforts.”

Cetera Financial Group’s bank and credit union channel, which it calls Cetera Investors or just its “branch community,” has boosted its advisory accounts by 195%, its assets under management by 150% and its assets under administration by 36% since June 2019. The independent broker-dealer network’s branch channel spans 43 locations and more than 186,000 clients. In 2019,

the private equity-backed firm acquired the assets

of the U.S. brokerage and investment advisory business of Foresters Financial. After the deal, organic growth and market appreciation over the past two years, the firm has launched a new Premier Client Group for advisors above an undisclosed threshold of assets to get customized branding and marketing. "This success is a testament to our advisors and the outstanding service they provide the communities and individual investors they serve,” LeAnn Rummel, head of Cetera’s branch channel, said in a statement.

Mercer Advisors and Hightower each unveiled additional deals this week amid the steep climb in the volume of M&A deals smashing last year’s record level. In the Mercer transaction, the firm acquired a Rochester, New York-based hybrid RIA called Mirsky Financial Management. The firm, led by advisors David Mirsky and Bernard Salamone, managed about $320 million in client assets with its prior brokerage firm, Leigh Baldwin & Co. “As Bernie and I began assessing our own transition strategy and began vetting potential partners, our guiding principle was to find a partner that shared this commitment to ‘white-glove’ customer service,” Mirsky said in a statement. Meanwhile, Hightower facilitated the third tuck-in deal of 2021 by its existing affiliated practice, Lexington, Massachusetts-based Lexington Wealth Management. The firm will acquire Thompson Wealth Management, a Concord-based practice with three advisors managing $340 million in client assets under founder Bruce Thompson. “We provide a variety of services to our clients; this partnership will allow us to expand that range while still keeping the boutique feel our clients expect of us,” Thompson said in a statement. “We were drawn to Lexington because of the people and culture, which aligned nicely with our own.”

Advisor Group lost one team in Western Pennsylvania but gained one in Florida, in separate recruiting moves announced in the independent broker-dealer channel this week. LPL Financial poached HPK Provident Advisors from Advisor Group’s FSC Securities, where the team of founder Ron Zucchelli, his son-in-law David Harper, grandson Colin Harper and financial advisors Michael Kutch and Brian Paluso managed about $230 million in client assets. “We were looking for additional resources and innovative technology with single sign-on, and we found that with LPL,” David Harper said in a statement. “The move has simplified so many of our day-to-day tasks, and we expect to get back a couple hundred, if not thousands, of hours per year so we can enjoy doing what we do best — helping our clients.” In the other move, Advisor Group’s Securities America added West Palm Beach, Florida-based Upward Wealth Group from Guardian Life’s Park Avenue Securities. Advisors Thomas Leinwol and John Ruffa managed $178 million in client assets with their prior firm. “After a comprehensive search for a new wealth management firm dedicated to meeting the needs of independent financial advisors, we decided partnering with Advisor Group and Securities America was the ideal next step for our practice as we plot our growth journey,” Leinwol said in a statement.

Financial advisor Timothy Meek of Meek Financial Services dropped Edward Jones to go independent with Raymond James Financial Services in Linton, Indiana. The 25-year financial services veteran’s practice, which includes senior client service associate Deann Leahman, managed $225 million in client assets with its prior firm. “My main reason for transitioning to Raymond James Financial Services is simple; now I am able to manage my office independently,” Meek said in a statement. “Backed by the full support of Raymond James, I will be empowered to continue the prudent management of my client’s investment portfolio, helping them to achieve their short- and long-term goals as they establish wealth for future generations.”

Breakaway RIA and brokerage firm Sanctuary Wealth tapped former UBS Wealth Management director and Atlanta assistant market head Dylan Isaacs to help lead its recruiting efforts as its first regional director of the west coast. Isaacs spent the past seven years with UBS, the last four in the position overseeing 17 offices across six states in the Southeast and Mid-Atlantic. “After spending years working within the structure of a giant bank, it became obvious that partnered independence is a better model for financial advisors and their clients,” Isaacs said in a statement. “This is an exciting time to be joining the Sanctuary story, and I look forward to putting my knowledge and experience to work in the effort to help us grow even bigger and stronger.” Sanctuary, which is majority owned by the Italian asset manager Azimut Group, has $18.5 billion in client assets.

Ritholtz Wealth Management has partnered with Wisdom Tree, Onramp Invest and cryptocurrency exchange Gemini to launch a strategy that gives financial advisors exposure to a variety of digital assets. The RWM WisdomTree Crypto Index is “an index-based, separately managed account” that is 36% Bitcoin, 20% Ethereum and 4% each of 11 other cryptoassets. Rather than an ETF, advisors will hold the underlying assets directly. A committee will regularly review and adjust exposures over time. Onramp will supply the SMA architecture, rebalancing technology and customer support for financial advisors, while Gemini’s custody infrastructure and exchange will power the creation of the Index. Ritholtz leadership, including Josh Brown, Barry Ritholtz, Michael Batnick and Ben Carlson, are all personally invested in the index.