Advisory M&A News – 3/25/24

Kingswood, Wentworth announce merger to form Binah Capital Group; Osaic adds Father/Daughter Duo; OneDigital acquires Creative Business Resources.

Kingswood, Wentworth Announce Merger to Form Binah Capital Group

Kingswood Acquisition Corp. announced its merger with Wentworth Management Services LLC, creating Binah Capital Group Inc., an independent wealth management enterprise that will become a publicly traded company.

The newly launched entity will be listed on the NASDAQ Global Market, trading under the ticker NASDAQ: BCG. The transaction’s completion enables Wentworth, a broker/dealer aggregator, to go public, with KWAC and Wentworth wholly owned subsidiaries of Binah Capital Group Inc. 

Want the latest retirement plan adviser news and insights? Sign up for PLANADVISER newsletters.

The company has a pro forma enterprise value of $208 million and encompasses approximately 1,900 individuals working within the financial services industries and approximately $23 billion in assets under management.

Craig Gould, who served as president of Wentworth, has been named CEO of Binah Capital, and David Shane, former chief financial officer at Sanctuary Wealth, has been named chief financial officer. The company’s executive management team, which will report to Gould and Shane, is comprised of Wentworth’s C-suite team.

Osaic Adds Father/Daughter Duo

Osaic Wealth Inc., a provider of wealth management services, added Kings Mill Wealth Advisors, a father-daughter team of Marvin Rauchbach of Chapel Hill, North Carolina, and Leigh Ritchey of Baltimore, to the Osaic platform. Kings Mill, which just launched in February, brings more than $280 million in total client assets to Osaic.

“We are thrilled [Marvin and Leigh] chose Osaic as their partner so we can help them build their business in the Mid-Atlantic and Southeast,” said Kristen Kimmell, Osaic’s executive vice president of business development, in a statement. “We look forward to supporting their success for years to come.”

With more than 50 years of combined experience, Rauchbach and Ritchey provides services such as retirement and estate planning, asset allocation and portfolio management, tax planning, cashflow analysis and charitable giving.

OneDigital Acquires Creative Business Resources

OneDigital has acquired Creative Business Resources, an HR outsourcing firm in Phoenix. The addition of CBR expands the OneDigital Resourcing Edge portfolio to the Arizona area.

CBR is a provider of customized outsourced human resources, employee benefits, retirement plans, risk management and payroll services to small-to-medium-sized businesses throughout the Southwest.

“We’re thrilled to welcome Michael to our management team as we expand our PEO solutions within the western region,” said Ted Crawford, president of OneDigital Resourcing Edge, in a statement. “Together with the entire CBR team, OneDigital’s fast-growing PEO solution will continue to serve SMBs with unmatched expertise and innovation.”

Michael Tope, CBR’s founder, joins OneDigital Resourcing Edge as its West region vice president. In addition, more than 40 CBR employees in Phoenix and Idaho Falls, Idaho, have joined OneDigital.

Former Fidelity Private Wealth Head Joins Empower’s Wealth Division

Roger Hobby was hired by Empower to a senior role in its recently rebranded consumer wealth division; he is the second former Fidelity head to join this year.

Empower announced Monday that Roger Hobby will be taking a senior position at its recently rebranded wealth advisory division.

Hobby will take the role of executive vice president and head of advisory and distribution for Empower Personal Wealth on April 1. He will lead the firm’s in-retirement plan and direct-to-consumer customer services, including financial planning and advice, and report to Carrol Waddell, president of the new division announced in March 2023, after the completed integration of Empower’s Personal Capital acquisition.

Never miss a story — sign up for PLANADVISER newsletters to keep up on the latest retirement plan adviser news.

Roger Hobby

Hobby joins the firm after a stint at competitor Fidelity Investments, where he was head of distribution for private wealth management, executive services, workplace planning and advice, and stock plan services—roles in which he led the firm’s service to high-net-worth clients and workplace participants, according to the announcement.

The announcement marks the second former Fidelity executive to join Empower this year, after Dave Gray took the role of executive vice president for enterprise solutions in January. Gray had been head of workplace products and platforms at Boston-based Fidelity.

Hobby will join Greenwood Village, Colorado-based Empower with experience in wealth management, executive benefits, workplace solutions and general management skills, Empower noted in a release.

“Roger has a very deep understanding of our customers’ needs and choices, and I am confident he will help Empower Personal Wealth create valuable experiences for them,” Waddell said in a statement. “His passion for customer success is evident to anyone who meets Roger. He is a mission-driven innovator who puts the customer at the center of his thinking.”

In February, Empower reported growth in its workplace solutions and asset management divisions from 2023. The consumer wealth division saw year-over-year growth of 31% to $72 billion, while still being in the “first or second inning” of development, according to an interview at the time with CEO Ed Murphy—also a former Fidelity executive.

“While Empower Personal Wealth is a more recent entrant in the wealth management market, we have a great opportunity to deliver world-class experiences to help customers achieve results,” Hobby said in a statement with the announcement of his hiring.

Hobby also formerly served as president of Fidelity’s family office services group, managing strategy, sales, business development, technical product development and relationship management for high-net-worth clients. Prior to that role, he was president of Wilmington Trust NA, where he led wealth advisory services for the Northeast, including private banking, equity compensation planning, investment services, fiduciary services and family office services.

«