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. Mercedes Fonte, Erik Beiermeister, Steven, his son, and Catena in addition to 3 customer associates. They had been generating $7.5 million in annual fees and commissions, in accordance with a person familiar with their practice, and joined Morgan Stanley’s private wealth group for clients with $20 million or perhaps more in the accounts of theirs.
The team had managed $735 million in client assets from 76 households that have an average net worth of fifty dolars million, based on Barron’s, which ranked Catena #33 out of 84 best advisors in Florida in 2020. Mindy Diamond, an industry recruiter which worked with the group on the move of theirs, said that the total assets of theirs were $1.2 billion when factoring in new clients and market appreciation in the 2 years since Barron’s assessed the practice of theirs.
Catena, who spent all though a rookie year of his 30-year career at Merrill, did not return a request for comment on the team’s move, which happened in December, according to BrokerCheck.
Catena decided to move after the son Steven of his rejoined the team in February 2020 and Lawrence began considering a succession plan for the practice of his, based on Diamond.
“Larry always thought of himself as a lifer with Merrill with no intention to make a move,” Diamond wrote in an email. “But, when his son, Steven, came into the business he started to view his firm with 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 75 percentage points to brokers’ payout when they consent to leave the book of theirs at the firm, but Diamond said the updated Client Transition Program was not “on Larry’s radar” after he’d 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, based on FintechZoom.
Beiermeister, which works individually from a branch in Florham Park, New Jersey, began the career of his at Merrill in 2001, according to BrokerCheck. Fonte started the career of her at Merrill in 2015.
A spokesperson for Merrill did not immediately return a request for comment.
The group is actually at least the fifth that Morgan Stanley has hired from Merrill in recent months and seems to be the largest. In addition, it employed a duo with $500 million in assets in Red Bank, New Jersey last month in addition to a pair of advisors producing about $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 which was generating 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 who actually left.
It ended 2020 with 15,950 advisors – 482 more than twelve weeks earlier and 481 higher than at the end of the third quarter. A lot of the increase came out of the inclusion of over 200 E*Trade advisors that work primarily from call centers, a Morgan Stanley executive said.
Merrill Lynch, that has stood by its freeze 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.