Morgan Stanley has hired a significant Merrill Lynch Private Wealth Management team based in Florida and New Jersey as it will add to the list of multi-million-dollar hires from the rival wirehouse.
The group includes Lawrence W. Catena, his son, Steven, Erik Beiermeister, and Mercedes Fonte 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, as well as joined Morgan Stanley's private wealth group for clients with twenty dolars million or even more in their accounts.
The group had managed $735 million in client assets from 76 households who have an average net worth of fifty dolars million, based on Barron's, which ranked Catena #33 out of 84 top advisors in Florida in 2020. Mindy Diamond, an industry recruiter that worked with the group on the move of theirs, said that their total assets were $1.2 billion when factoring in new clients and market appreciation in the two years since Barron's assessed their practice.
Catena, who spent all however, 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 occurred in December, based on BrokerCheck.
Catena decided to move after his son Steven rejoined the team in February 2020 and Lawrence began considering a succession plan for the practice of his, according to Diamond.
"Larry always thought of himself as a lifer with Merrill-with no purpose to create 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 with 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 new enhanced sunsetting program in November that can add an additional 75 percentage points to brokers' payout whenever they agree to leave the book of theirs 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 his career at Merrill in 2016 but sojourned at Prudential Investment Management from 2017 until 2020 before rejoining, based on FintechZoom.
Beiermeister, that works separately from a part in Florham Park, New Jersey, began his career at Merrill in 2001, based on BrokerCheck. Fonte started her career at Merrill in 2015.
A spokesperson for Merrill didn't immediately return a request for comment.
The group is actually at least the fifth that Morgan Stanley has hired from Merrill in recent months as well as appears to be the biggest. In addition, it selected a duo with $500 million in assets in Red Bank, New Jersey last month and a pair of advisors producing aproximatelly $2.6 million from Merrill in Maryland.
In December, Morgan Stanley lured a solo producer in California who had won asset growth accolades from Merrill and in October hired a 26 year Merrill lifer in a Chicago suburb that was producing 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 very first time in recent years it closed its net recruiting gap to near zero as the amount of new hires offset those that left.
It ended 2020 with 15,950 advisors - 482 more than twelve weeks earlier and 481 higher than at the conclusion of the third quarter. Most of the increase came out of the inclusion of over 200 E*Trade advisors who work primarily 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 its number of branch-based wealth management brokers from its consumer-bank-based Edge brokerage force.