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Wealth Enhancement Group, one of many nation’s most prolific acquirers of registered funding advisory companies, has picked up a agency in Cape Cod, Mass., managing round $236 million for some 360 purchasers.
The group from Asset Administration Sources, led by founder J. Christopher Boyd, contains six advisors, and is concentrated on serving people at or close to retirement.
In an announcement, Boyd cited the “advantages and depth of scale” provided by WEG, “one of many nation’s largest and fastest-growing registered funding advisor companies.”
With 15 offers introduced and one other three the agency says are anticipated, 2023 stands because the second-most energetic in WEG’s historical past after a complete of 19 offers in 2021, based on its rely.
The one different acquirer that comes shut in deal quantity is Mercer Advisors, which picked up 19 or 20 advisory companies final yr (relying on counts from both DeVoe and Firm or Echelon Companions) and 16 in 2021. Based mostly on quarterly monitoring information this yr, Mercer was at seven offers by the top of September and WEG was at 9.
Based in 1997, WEG has expanded exponentially lately. Since promoting a majority stake to Lightyear Capital in 2015, the agency has grown belongings from round $4 billion to greater than $71.7 billion.
WEG had grown to just about $12 billion by the point TA Associates purchased out Lightyear’s funding in 2019. When Onex Companions got here on board as a majority proprietor in 2021, the agency was managing near $40 billion.
In keeping with WEG Chief Investments and Enterprise Improvement Officer Jim Cahn, the RIA’s progress is attributable to the fast tempo of personal equity-supported acquisitions, a few of which represented a number of billions in managed belongings, mixed with a marketing-driven, annual natural progress price of near 9%.
Talking in Could at a DeVoe and Firm convention in Nashville, Cahn mentioned he anticipated including a complete of $20 billion in belongings this yr—half by means of acquisitions and half although natural progress—as WEG nears $100 billion.
(The 15 offers already introduced by the agency added round $6.1 billion in belongings.)
“If we try this fairly constantly, in 4 or 5 years from now we’ll be at $150 billion—and nonetheless be small,” he mentioned. “We do not actually need to do something to get to $100 billion. . . If we did not do one other transaction, simply between the market and flows we might be at $100 billion in three to 4 years.”
Minneapolis-based Wealth Enhancement Group now has round 100 workplaces nationwide, primarily situated within the higher Midwest and alongside each coasts—with near 450 advisors offering tax, belief and enterprise proprietor session alongside a broad menu of wealth administration providers for greater than 55,000 households and companies.
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