Morgan Stanley has hired a huge Merrill Lynch Private Wealth Management team based in New Jersey and Florida 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 three client associates. They’d been generating $7.5 million in annual fees and commissions, according to an individual familiar with their practice, and joined Morgan Stanley’s private wealth team for clients with twenty dolars million or perhaps more in the accounts of theirs.
The staff had managed $735 million in client assets from 76 households which have an average net worth of $50 million, according to Barron’s, which ranked Catena #33 out of 84 top rated advisors in Florida in 2020. Mindy Diamond, an industry recruiter who worked with the team 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 the practice of theirs.
Catena, who spent all although 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, according to BrokerCheck.
Catena made the decision to move after his son Steven rejoined the team in February 2020 and Lawrence started considering a succession plan for the practice of his, as reported by Diamond.
“Larry always thought of himself as a lifer with Merrill-with no goal to create a move,” Diamond wrote in an email. “But, when the son of his, Steven, came into the business he soon started viewing his firm through a whole new lens. Would it be good enough for the life of Steven’s career?”
The move comes as Merrill is actually launching an interesting enhanced sunsetting program in November that can add an additional seventy five percentage points to brokers’ payout once 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’d 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, according to FintechZoom.
Beiermeister, that works separately from a department in Florham Park, New Jersey, started the career of his at Merrill in 2001, based on BrokerCheck. Fonte started the career of her at Merrill in 2015.
A spokesperson for Merrill didn’t immediately return a request for comment.
The group is a minimum of the fifth that Morgan Stanley has hired from Merrill in recent months and seems to be the largest. It also selected a duo with $500 million in assets in Red Bank, New Jersey last month as well as 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 who was generating more than $2 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 years 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. Most of the increase came out of the inclusion of over 200 E*Trade advisors who work largely from call centers, a Morgan Stanley executive said.
Merrill Lynch, that 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.