In the ever-evolving landscape of wealth management, Registered Investment Advisors (RIAs) are increasingly turning to strategic acquisitions as a powerful mechanism to fuel growth and strengthen market presence. Amid a dynamic mergers and acquisitions (M&A) environment, firms are not just expanding their asset bases but also addressing critical needs like succession planning, operational efficiency, and advisor satisfaction. Two prominent players, Steward Partners and &Partners, exemplify this trend with their recent moves to integrate new teams and broaden their geographic and demographic reach. Their approaches, while distinct, underscore a broader industry shift toward consolidation, where scale and alignment of values play pivotal roles in shaping competitive strategies. This narrative delves into how these firms are leveraging acquisitions to navigate challenges and seize opportunities, offering a glimpse into the forces driving transformation in the sector.
Expanding Footprints Through Targeted Moves
Steward Partners, a New York-based firm established over a decade ago, has significantly amplified its presence with the acquisition of Longbridge Wealth Advisors, an Ohio-based RIA managing $481 million in assets. This strategic addition bolsters the firm’s Legacy Division, which prioritizes integrating established advisory teams while preserving their unique brand identities and operational autonomy. The Longbridge team, with its expertise in financial planning for clients approaching retirement, aligns seamlessly with Steward Partners’ commitment to client-centric service and enduring relationships. Beyond this, the firm has executed a series of expansions, incorporating teams like Consilium Wealth Management in California and Desert Sky Advisors in Arizona, pushing its total client assets beyond $44 billion. Such geographically diverse acquisitions highlight a deliberate strategy to build a national footprint while providing advisors with robust back-office support and resources to enhance service delivery.
In contrast, &Partners, a relatively new platform in the wealth management arena, has made waves by welcoming Lumitas Wealth Strategies, a Minnesota-based team managing $520 million in pre-transition assets. This move reflects &Partners’ rapid ascent, as it already oversees $35.7 billion in assets under management and has attracted over 85 teams. A distinguishing factor for &Partners is its emphasis on diversity, with 30% of its teams founded by women and nearly 40% including at least one woman advisor, surpassing industry norms. The firm’s equity-focused compensation model, aiming to position advisors as the largest group of shareholders within the next few years, further sets it apart. With an ambitious target of reaching $120 billion in assets by 2028, &Partners is crafting a collaborative, advisor-centric platform that appeals to talent seeking ownership stakes and a supportive culture, demonstrating how acquisitions can be paired with innovative structures to drive growth.
Strategic Visions Shaping Industry Trends
The acquisitions by Steward Partners reveal a nuanced approach centered on cultural alignment and succession planning, particularly through its Legacy Division, which targets established teams valuing long-term client relationships. This focus ensures that integrating firms not only expand the asset base but also maintain a cohesive service philosophy that prioritizes client trust. The firm’s ability to span diverse regions—from Ohio to Georgia—illustrates a calculated effort to create a nationwide network while allowing acquired teams the flexibility to operate under their established identities. Such a strategy addresses a critical industry challenge: providing advisors with a pathway to scale operations without sacrificing the personal touch that defines their client interactions. This balance of growth and autonomy positions Steward Partners as a leader in navigating the complexities of consolidation within wealth management.
Meanwhile, &Partners adopts a forward-thinking vision that intertwines advisor equity with diversity as cornerstones of its expansion strategy. By offering a compensation structure that fosters ownership, the firm appeals to teams looking for more than just financial growth—seeking a stake in the future of the platform itself. This model, coupled with a strong commitment to inclusivity, sets &Partners apart in a competitive landscape where attracting top talent is paramount. The rapid onboarding of numerous teams since its inception showcases how a modern, inclusive approach can accelerate growth through acquisitions. As &Partners continues to build toward its lofty asset targets, its emphasis on collaboration and shared success offers a fresh perspective on how RIAs can adapt to evolving advisor expectations, potentially reshaping industry standards for recruitment and retention in the years ahead.
Reflecting on a Transformative Era
Looking back, the strategic expansions undertaken by Steward Partners and &Partners marked a defining moment in the wealth management industry, where M&A activity became a cornerstone for scaling operations and adapting to competitive pressures. Both firms tackled unique challenges—Steward Partners with its dedication to legacy and continuity, and &Partners with its innovative push for equity and diversity—while contributing to a broader wave of consolidation. Their efforts highlighted how acquisitions could serve as more than just growth tools; they addressed vital needs like operational support and advisor satisfaction. Moving forward, other RIAs might consider blending cultural alignment with progressive ownership models to attract talent and build sustainable platforms. Exploring partnerships that prioritize both scale and shared values could pave the way for enduring success in an increasingly consolidated market, offering a roadmap for navigating future industry shifts.
