Morgan Stanley has hired a huge 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 and also three customer associates. They’d been generating $7.5 million in annual fees and commissions, in accordance with a person familiar with the practice of theirs, and joined Morgan Stanley’s private wealth team for clients with twenty dolars million or more in their accounts.
The staff had managed $735 million in client assets from seventy six households who have an average net worth of fifty dolars million, based on Barron’s, which ranked Catena #33 out of eighty four top rated advisors in Florida in 2020. Mindy Diamond, an industry recruiter who worked with the team 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 two years since Barron’s assessed the practice of theirs.
Catena, who spent all but 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 happened in December, based on BrokerCheck.
Catena made the decision to move after the son Steven of his rejoined the team in February 2020 and Lawrence started 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 come up with a move,” Diamond wrote in an email. “But, when the son of his, Steven, came into the business he soon started viewing his firm with a 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 which can add an extra seventy five percentage points to brokers’ payout once they consent to leave their book at the firm, but Diamond said the updated Client Transition Program was not “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, as reported by FintechZoom.
Beiermeister, who works separately from a part 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 a minimum of the fifth that Morgan Stanley has hired from Merrill in recent months and appears 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 who was producing 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 very first time in recent years it closed its net recruiting gap to near zero as the number of new hires offset those who actually left.
It ended 2020 with 15,950 advisors – 482 more than twelve months earlier and 481 higher than at the conclusion of the third quarter. Most of the increase came from the addition of more than 200 E*Trade advisors that work largely from call centers, a Morgan Stanley executive said.
Merrill Lynch, which has stood by its freeze 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.