Morgan Stanley has hired a big Merrill Lynch Private Wealth Management team based in Florida and New Jersey as it contributes to the list of multi-million-dollar hires from the rival wirehouse.
The group includes Lawrence W. Mercedes Fonte, Erik Beiermeister, Steven, his son, and Catena as well as 3 client associates. They’d been generating $7.5 million in annual fees and commissions, based on an individual familiar with their practice, and joined Morgan Stanley’s private wealth team for clients with twenty dolars million or even more in their accounts.
The team had managed $735 million in client assets from seventy six households that have an average net worth of fifty dolars million, based on Barron’s, which ranked Catena #33 out of eighty four top advisors in Florida in 2020. Mindy Diamond, an industry recruiter who worked with the team on their move, said that their total assets were $1.2 billion when factoring in new clients and market appreciation in the 2 years since Barron’s assessed their practice.
Catena, who spent all though a rookie year of the 30-year career of his at Merrill, did not return a request for comment on the team’s move, which took place in December, as reported by BrokerCheck.
Catena made the decision to move after his son Steven rejoined the team in February 2020 and Lawrence began considering a succession plan for his practice, according to Diamond.
“Larry always thought of himself as a lifer with Merrill with no objective to make a move,” Diamond wrote in an email. “But, when the son of his, Steven, came into the business he soon began viewing the firm of his through a brand new lens. Would it be good enough for the life of Steven’s career?”
The move comes as Merrill is actually launching a completely new enhanced sunsetting program in November which can add an additional 75 percentage points to brokers’ payout when they agree to leave their book at the firm, but Diamond said the updated Client Transition Program wasn’t “on Larry’s radar” after he had decided to make the move of his.
Steven Catena started the career of his at Merrill in 2016 but sojourned at Prudential Investment Management from 2017 until 2020 before rejoining, as reported by FintechZoom.
Beiermeister, who works separately from a department in Florham Park, New Jersey, started his career at Merrill in 2001, as reported by BrokerCheck. Fonte started her career at Merrill in 2015.
A spokesperson for Merrill did not immediately return a request for comment.
The group is at least the fifth that Morgan Stanley has hired from Merrill in recent months as well as appears to be the largest. In addition, it selected a duo with $500 million in assets in Red Bank, New Jersey last month as well as a pair of advisors producing about $2.6 million from Merrill in Maryland.
In December, Morgan Stanley lured a solo producer in California that had won asset-growth accolades from Merrill and in October hired a 26-year Merrill lifer in a Chicago suburb that was generating much more than two dolars million.
Morgan Stanley aggressively re entered the recruiting market last year after a three-year hiatus, and executives have said that for the first time in recent times it closed its net recruiting gap to near zero as the number of new hires offset those who left.
It ended 2020 with 15,950 advisors – 482 more than 12 months earlier and 481 higher than at the end of the third quarter. A lot of the increase came from the inclusion of around 200 E*Trade advisors who work largely from call centers, a Morgan Stanley executive said.
Merrill Lynch, which has stood by the freeze of its on veteran broker recruiting put in place in 2017, no longer breaks out the number of its of branch-based wealth management brokers from its consumer-bank-based Edge brokerage force.