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Tuesday, March 5, 2024

Summit Monetary Buys Stake in The Savvy Investor’s East Coast RIA

Summit Monetary, a Parsippany, N.J.–primarily based registered funding advisor backed by Service provider Funding Administration and overseeing round $9 billion in consumer property, has made a non-controlling, minority funding in Prostatis Monetary Advisors Group—a Baltimore-based agency owned by “The Savvy Investor.”

Representing Summit’s fifth strategic funding of the yr, Prostatis manages roughly $310 million and is becoming a member of beneath a minority funding mannequin launched three years in the past, Summit Development Companions. Majority owned by Michael Canet, who based Prostatis in 2003, the agency will stay by itself ADV presently.

Canet can also be the host of The Savvy Investor radio present. Established in 2011, it airs weekends on WJZ 105.7 The Fan in Baltimore and on a nationally syndicated podcast.   

“Mike just isn’t solely identified for his podcast, however he has additionally been a coach to a whole lot of advisors through the years,” stated Ed Friedman, Summit’s director of enterprise improvement and development. ‘He has a powerful status in these circles and a whole lot of these corporations that he’s labored with have reached out to us to affix the partnership as nicely.”

With 5 workplaces in Maryland and Florida, Prostatis gives tax-efficient asset administration, holistic monetary planning and session for prosperous households, certified traders, companies and retirement plan sponsors, in addition to insurance-based threat administration options. The agency was launched to Summit by means of an affiliate who knew Canet was on the lookout for a minority companion.

“It shortly turned evident that becoming a member of Summit Development Companions would speed up Prostatis’ development, each by way of enhancing service for our current shoppers and in serving to us purchase new ones,” Canet stated in an announcement.

The SGP partnership mannequin combines money and fairness, together with a wide range of unique providers, similar to entry to sure different investments, tax attorneys and an in-house planning division. Laser-focused on corporations searching for development, the invite-only mannequin additionally consists of further capital made accessible by means of Summit’s stability sheet and the Service provider partnership.

“The Service provider crew appears to be like ahead to the continued partnership and collaboration with each Summit and Prostasis,” stated Service provider Managing Companion Rick D’Amico. 

Summit presently manages round $6.2 billion in advisory property and advises on one other $2.8 billion in brokerage property by means of a partnership with Purshe Kaplan Sterling. About half of Summit’s 21 companion corporations embrace breakaways, whereas the opposite half had been impartial RIAs in want of sources and scale.

Earlier this yr, Summit CEO Stan Gregor stated the agency was working so as to add Goldman Sachs and First Clearing alongside Constancy, Schwab and Pershing as custodians.

Summit expects to announce at least three new additions earlier than subsequent yr, stated Friedman, and has as much as six within the pipeline for the primary quarter of 2024.

“We do not have a said objective with respect to variety of advisors or AUM or something alongside these traces,” he stated. “It’s nice to set objectives, however typically these objectives drive your course of versus your course of driving the transactions, and we need to be certain we’re doing the correct kind of transactions with the correct kind of individuals. And also you need to have the ability to say no to people who have to be stated no to.

“I’ll inform you that our pipeline might be the perfect that I’ve seen within the 3 1/2 years that I have been right here,” he famous. “And 2024, definitely, will grow to be a banner yr for us.”

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