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Modern Wealth Expands Its Reach With Chicago Acquisition
In a significant move that raises its profile and asset management capabilities, Modern Wealth Management has successfully acquired OFM Wealth, a seasoned Chicago-based RIA with approximately $310 million in client assets. This strategic acquisition enables Modern Wealth to breach the Chicago market while enhancing its assets under management (AUM) to over $7.5 billion—an impressive feat just two years post-launch.
Founded in 1981, OFM Wealth serves over 175 households and specializes in personalized financial advisory services. Their founder, Sam Ogrizovich, will transition to Modern Wealth alongside five other staff members, ensuring continuity and stability for existing clients. Notably, Modern Wealth is supported by Crestview Partners, with strong equity backing of $200 million that empowers it to expand aggressively throughout the United States. This acquisition marks their 18th office location, showcasing a robust growth trajectory despite the complexities of the market.
EP Wealth Advisors Strengthens Portfolio With New Acquisition
Meanwhile, EP Wealth Advisors continues its ambitious growth strategy with the acquisition of NBS Financial Services, located in Westlake Village, California. This deal brings an additional $230 million in client assets to EP Wealth, which now boasts around $32.6 billion in total assets under management. NBS stands out with its diverse services that encompass financial, tax, estate, and retirement planning—areas increasingly deemed essential by clients in today’s financial landscape.
The incorporation of NBS aligns perfectly with EP Wealth's strategic vision of providing holistic financial services, especially as they already operate an office in Westlake Village. Led by Geordie Crossan, whose family has deep roots in the advisory sector since 1981, EP Wealth is an employee-owned firm backed by private equity from Berkshire Partners, further solidifying its operational capability.
Kestra Financial: A New Addition to Its Dynamic Portfolio
In addition to EP Wealth and Modern Wealth’s transactions, Kestra Private Wealth has lured former Raymond James advisor John Griffin to its ranks. Griffin, along with his team managing just under $190 million in assets, will enhance the offerings of Kestra’s Inspired Wealth Planning based in Cordele, Georgia, now expanding to Moultrie, GA.
This move reaffirms Kestra's position as a formidable player among independent financial advisors, with a reported $103 billion in advisory assets and approximately 1,700 independent advisors within its platform. Griffin’s move illustrates the ongoing reshaping of the advisory landscape as firms continuously strive to attract top talent and serve their clients better.
The Emergence of M&A Trends in Financial Advisory
The burgeoning trend of mergers and acquisitions in the financial advisory sector highlights the industry's shifting dynamics towards collaborative strength and comprehensive service offerings. As seen with firms like Sowell Management, which recently appointed leaders to strengthen its investment and M&A strategies, the landscape is evolving rapidly, compelling firms to innovate and diversify.
Furthermore, the integration of diverse financial services under one roof—ranging from wealth management to tax planning—brings significant advantages to clients seeking a more well-rounded financial partner. The ‘one-stop-shop’ phenomenon addresses the modern client's demand for convenient, cohesive financial solutions, ultimately enhancing overall customer experience.
Future Implications and Market Trends
As these mergers reshape the competitive landscape, one must ponder what the future holds for standalone RIAs versus larger entities capable of absorbing their smaller counterparts. While consolidation might foster efficiency and innovation, it also raises questions about client service quality and personalized attention, especially given the unique nature of each client’s financial situation.
Simultaneously, structural shifts in the industry may present wealth management firms with opportunities to further diversify their services and enhance their market position. Further acquisitions and partnerships may materialize as firms look to build stronger operational frameworks, catering to the nuanced needs of their clients.
Concluding Thoughts on the Expanding Wealth Management Landscape
The recent developments in the wealth management sector exemplify a transformative phase for advisory firms aiming for operational excellence and enhanced client service offerings. Mergers and acquisitions like those of Modern Wealth, EP Wealth, and Kestra emphasize a strategic pivot towards holistic financial solutions that align with client needs and market demands.
As the landscape evolves, both advisors and clients should remain vigilant and proactive about these changes, ensuring that they leverage the best possible resources and expertise available in this burgeoning market. For business owners and entrepreneurs seeking to navigate financial independence and sustainable growth, staying informed about these developments is paramount.
To harness these insights and maximize financial opportunities, reach out today to explore how these trends may impact your strategic investment decisions.
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