Advisory M&A News – 7/22/24

Avantax Adds Long Island-based S&P Financial Services

Avantax Inc., a firm within the Cetera Financial Group and a provider of tax-focused financial planning and wealth management, added financial advisers John Surace, Kelly Powers and their S&P Financial Services team, based on Long Island in Hauppauge, New York.

Transferring to Avantax from Osaic, S&P Financial has approximately $150 million in client assets under administration, as of June. According to the firm, its mission is to build strong, multi-generational relationships with clients.

Prior to forming S&P Financial Services, Surace’s experience included working as an executive at a global financial services firm where he supervised a location with more than 300 advisers. Meanwhile, Powers has managed money for clients for 30 years, while working in roles such as vice president, sourcing, hiring and training new financial advisers.

“When we started talking with Avantax, things sounded so good that I was actually skeptical going in,” Surace said in a statement. “Transitioning to a new broker/dealer is stressful, and in other places the level of services that were promised turned out to be subpar. We didn’t experience any of that with Avantax. We trusted our gut, went with Avantax, and it’s been all green lights from the beginning.”

Blue Owl Announces Acquisition of Atalaya Capital Management’s Business

Blue Owl Capital Inc., an alternative asset manager, announced it has entered into a definitive agreement to acquire the business of alternative credit manager Atalaya Capital Management LP for $450 million. The acquisition is expected to close in the second half of 2024 and is expected to be modestly accretive to Blue Owl in 2025.

Blue Owl’s Co-CEOs Doug Ostrover and Marc Lipschultz said in a statement, “The acquisition of Atalaya adds adjacent and scaled alternative credit capabilities that complement Blue Owl’s leading position in direct lending.”

Atalaya focuses primarily on asset-based credit investments across consumer and commercial finance and corporate and real estate assets, and it managed more than $10 billion in AUM as of June 30. Since inception, Atalaya has deployed more than $17 billion of capital, with nearly 70 percent of deal flow sourced directly through asset owners, originators or joint venture partners.

Atalaya was founded in 2006 by Ivan Zinn, who serves as founding partner and CIO. Zinn will join Blue Owl as head of alternative credit and will report to Craig Packer, head of credit and co-president of Blue Owl. Atalaya is based in New York and has approximately 115 employees, including more than 50 investment professionals. When the acquisition closes, most of Atalaya’s employees are expected to join Blue Owl and will continue to manage existing Atalaya funds.

CW Advisors Acquires New Jersey RIA Mercadien Asset Management

CW Advisors LLC, a registered investment adviser headquartered in Boston, announced the acquisition of Mercadien Asset Management LLC, an RIA located in Hamilton, New Jersey. The deal was completed earlier this month and is the third acquisition for CWA since commencing its partnership with Audax Private Equity in June 2023.

“Ken and his team are outstanding,” said Paul Lonergan, CEO of CWA, in a statement. “We are excited to welcome the team and their clients to CWA. With a strong focus on financial planning and client service, they are a great asset to the firm.”

The addition of the New Jersey location enhances CWA’s presence in the Mid-Atlantic. Hamilton joins CWA’s offices in Wynnewood, Pennsylvania, and Columbia, Maryland. CWA now has nine offices across the United States, with 92 employees and more than $8.8 billion of assets under management.

“CWA’s philosophy and platform make them the perfect partner to continue providing quality service and an expanded offering to our clients,” said Ken Kamen, president of Mercadien Asset Management, in a statement.