Morgan Stanley has hired a huge Merrill Lynch Private Wealth Management team based in Florida and New Jersey as it contributes to the list of multi-million-dollar hires from the rival wirehouse.
The group includes Lawrence W. Catena, his son, Steven, Erik Beiermeister, and Mercedes Fonte and also 3 customer associates. They had been generating $7.5 million in annual fees and commissions, according to an individual familiar with their practice, and joined Morgan Stanley’s private wealth team for clients with twenty dolars million or even more in their accounts. The group had managed $735 million in client assets from seventy six households that have an average net worth of fifty dolars million, as reported by Barron’s, which ranked Catena #33 out of 84 top rated advisors in Florida in 2020. Mindy Diamond, an industry recruiter who worked with the group on their move, 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 his son Steven rejoined the team in February 2020 and Lawrence started considering a succession plan for the practice of his, as reported by Diamond.
“Larry always thought of himself as a lifer with Merrill-with no purpose to make a move,” Diamond wrote in an email. “But, when the son of his, Steven, came into the business he soon started to view the firm of his through a brand new lens. Would it be good enough for the life of Steven’s career?”
The move comes as Merrill is actually launching a unique enhanced sunsetting program in November which can add an extra 75 percentage points to brokers’ payout whenever 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 his move.
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 separately from a department in Florham Park, New Jersey, began his career at Merrill in 2001, as reported by 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 as well as appears to be the biggest. In addition, it hired 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 that had won asset-growth accolades from Merrill and in October hired a 26-year Merrill lifer in a Chicago suburb which was producing much more than $2 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 years it closed its net recruiting gap to near zero as the amount of new hires offset those who left.
It ended 2020 with 15,950 advisors – 482 more than 12 weeks earlier and 481 higher than at the end of the third quarter. Most of the increase came from 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 the number of its of branch-based wealth management brokers from its consumer-bank-based Edge brokerage force.