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Steward Companions, an employee-owned and personal equity-backed community of monetary advisory practices overseeing some $32 billion in shopper belongings, is including 5 advisors and $488 million in shopper belongings with two additions below a brand new acquisition mannequin launched by way of acquisition late final yr.
In Virginia Seashore, Va., Monaco Capital was based in 2003 by Joseph Monaco, an economics Ph.D who beforehand hung out with Prudential Securities and UBS. Monaco, who’s becoming a member of Steward’s Virginia Seashore workplace, manages about $175 million for greater than 430 households and a dozen institutional buyers.
Saling Simms, in Columbus, Ohio, contains 4 advisors overseeing $314 million for greater than 450 households and 57 establishments. Led by President Jim Saling and Vice President Brent Simms, the group represents Steward’s first workplace location in Ohio.
Each companies have been beforehand working as impartial RIAs and are becoming a member of Steward below its new Legacy Division, which was created final yr to offer a vacation spot for advisors in want of a succession plan. The division was seeded with the acquisition of Freedom Road Companions, a 7-year-old agency with 28 advisors, 17 areas and $3.2 billion in managed belongings. Freedom Road CEO Scott Danner now manages the division together with Steward’s govt management group.
“The groups at these two respective companies have spent their whole careers shouldering the monetary burden of their purchasers,” Danner mentioned in an announcement. “Our purpose at Steward is to shoulder it for them, making certain clean continuity as these advisors transition into the following chapter of their careers and their purchasers into the following part of their lives.
“I’ve little question that this can be a clean transition for everybody concerned,” he added.
Companies acquired by Steward are given the choice of co-branding, adopting the Steward identify or becoming a member of the Legacy Division. Fairness is obtainable as a part of the transaction, and expertise is often introduced in on a W-2 foundation, however not all the time.
CEO Jim Gold advised Wealthmanagement.com full acquisitions are most popular, however he’s open to different preparations in the suitable conditions.
“We satisfaction ourselves on flexibility and optionality, so we’re not going to attract any traces within the sand, however I feel our basic premise goes to be that we need to purchase the entire thing,” he mentioned in November. “If there’s a extremely, actually nice alternative that could be a minority stake or a majority, however not a complete buy, we’ll definitely have a look at that and see if it is sensible.”
Based in 2013, Steward has been centered recently on offering optionality to draw advisory expertise. Along with the brand new division, the agency has W-2, RIA-only and 1099 affiliation fashions and went multicustodial with the addition of Pershing final yr. A 2023 model “refresh” wrapped up in February when Steward Companions dropped World Advisory from its identify.
Majority-owned by staff and backed by capital from Cynosure Group and the Pritzker Group, in addition to a $140 million credit score facility, the agency has grown belongings from $50 million to $32 billion during the last decade, primarily by means of the recruitment of wirehouse breakaways.
After including greater than $6 billion by means of recruitment final yr, largely of breakaway wirehouse and bank-based advisors, Steward Companions expects to duplicate that progress in 2024.
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