Morgan Stanley has hired a significant Merrill Lynch Private Wealth Management team based in Florida and New Jersey as it adds 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 had been generating $7.5 million in annual fees and commissions, based on a person familiar with their practice, and joined Morgan Stanley’s private wealth team for clients with twenty dolars million or even more in the accounts of theirs.
The staff had managed $735 million in client assets from 76 households that have an average net worth of $50 million, as reported by Barron’s, which ranked Catena #33 out of eighty four top 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 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, as reported by BrokerCheck.
Catena decided to move after the son Steven of his rejoined the team in February 2020 and Lawrence started considering a succession plan for his practice, as reported by Diamond.
“Larry always thought of himself as a lifer with Merrill-with no goal to make a move,” Diamond wrote in an email. “But, when his son, Steven, came into the business he started to view his firm through a new lens. Would it be good enough for the life of Steven’s career?”
The move comes as Merrill is actually launching an innovative enhanced sunsetting program in November that can add an extra 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 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, according to FintechZoom.
Beiermeister, who works individually from a department in Florham Park, New Jersey, began his career at Merrill in 2001, as reported by BrokerCheck. Fonte started her career at Merrill in 2015.
A spokesperson for Merrill didn’t immediately return a request for comment.
The group is at least the fifth that Morgan Stanley has hired from Merrill in recent months and also 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 aproximatelly $2.6 million from Merrill in Maryland.
In December, Morgan Stanley lured a solo producer in California which had won asset-growth accolades from Merrill and in October hired a 26-year Merrill lifer in a Chicago suburb that 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 first time in recent times 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 conclusion of the third quarter. Most of the increase came from the inclusion of around 200 E*Trade advisors who work largely from call centers, a Morgan Stanley executive said.
Merrill Lynch, which has stood by the freeze of its 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.