Wealthspire Advisors has made its first-ever RIA acquisition.
The $10.6bn firm is acquiring StratWealth, a Maple Lawn, Md.-based RIA with approximately $1.5bn in assets under management. Specific financial terms of the deal, which is expected to close in the fourth quarter of 2020, were not disclosed.
‘It’s a great fit and we couldn’t be more excited about expanding our presence in the mid-Atlantic,’ said Mike LaMena (pictured), Wealthspire’s chief executive.
The acquisition will give Wealthspire three additional offices in Maryland: StratWealth’s Maple Lawn headquarters, as well as its satellite locations in Annapolis and Salisbury. Wealthspire already has a foothold in the region, as one of its predecessor companies, Bronfman Rothschild, had offices in Potomac, Md. and Reston, Va.
Wealthspire Advisors was formed in May of 2019, after insurance brokerage firm NFP financed a merger between Bronfman Rothschild and New York-based RIA Sontag Advisory. NFP is majority-owned by private equity firm Madison Dearborn Partners.
LaMena, who once served as COO of RIA giant Hightower, told Citywire that Wealthspire will not pursue acquisitions for the sake of merely making acquisitions.
‘We’ll never trade expediency of growth for quality. It starts with finding the right firms that are a cultural fit, a business fit, are going to add value to end clients and expand the talent pool that we have,’ he said. ‘We are excited to be out in the market with a material acquisition of a high-caliber firm and I think we’re excited to do more.’
In StratWealth, Wealthspire is adding a nine-advisor firm with roughly 900 client families. StratWealth has a 120-plan 401(k) business, which will ultimately assimilate with NFP. Founded in 1991, StratWealth specializes in working with retirees, divorcees, baby boomers approaching retirement and gen Xers.
‘Our process in going to market was very deliberate. We knew we wanted a capital partner that had at least $10bn or more in assets,’ said Jim DeCarlo, StratWealth’s chief executive. ‘We wanted a partner that had a similar vision and also a culture of people first. Not only does Wealthspire have that, but NFP, their parent, also has a people-first culture.’
Wipfli LLP served as StratWealth’s investment banker.