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Prime Capital Funding Advisors introduced the acquisition of Reno, Nev.-based RIA Cornerstone Complete Wealth Administration on Thursday. The deal provides $400 million in property beneath administration and establishes PCIA’s first workplace in Nevada.
With many years of expertise serving people and households, Cornerstone is without doubt one of the 10 largest companies—by AUM—within the Reno space. Led by President Christopher Abts, one in all 4 advisors, the workforce of 10 will proceed to serve roughly 575 households.
“Partnering with PCIA will improve our shopper service capabilities and develop our funding administration options for our purchasers and their households,” Abts mentioned in a press release.
“Quite than measuring its success in opposition to different companies, Cornerstone does so based mostly on the objectives of its purchasers,” mentioned PCIA CEO Glenn Spencer. “We consider that is vital to offering top-tier shopper providers and can, in flip, generate natural development. I’m excited to develop into Nevada.”
Among the many issues that attracted PCIA to Cornerstone is a lead-generating tv present that Abts produces, Redefining Retirement.
Calling the present “extremely efficient,” Park Sutton Managing Director Dan Erichson famous Cornerstone has seen double-digit natural development over the past 5 years and is among the many quickest rising companies in a state thought of enticing to many consumers.
Park Sutton Advisors, led by Erichson, served as monetary advisor to Cornerstone on the transaction.
“PCIA has plans to make use of Cornerstone’s advertising methodologies and TV present to drive results in a digital advisory observe it acquired,” he mentioned, referring to the December 2022 acquisition of Liberty Wealth.
Based mostly in Overland Park, Kan., PCIA gives fee-based asset administration and monetary planning by way of its Prime Capital Wealth Administration model, in addition to retirement plan advisory providers and schooling by way of its Certified Plan Advisors model.
The agency was established in 1987, earlier than being purchased out and rebranded in 2017. Since formally re-launching in January 2018 with round $2.8 billion in shopper property, Prime Capital Funding Advisors has introduced 14 acquisitions along with Cornerstone.
At this time, PCIA manages roughly $7.9 billion in property and advises on $8.8 billion.
After promoting a 20% stake to personal fairness agency LNC Companions in 2019, the agency switched capital companions within the spring of 2020 to a person non-public investor and established a brand new credit score facility.
The corporate subsequently recapitalized in October 2021 when greater than 10% of the agency’s fairness was offered to 88 current workers, bringing worker possession to 65%. A handful of different buyers account for the remaining 5%, Spencer advised WealthManagement.com again in January, noting the chances had been estimates.
Now, he mentioned, all acquired companies are anticipated to take fairness.
“The imaginative and prescient was at all times to be advisor-owned,” he mentioned. “Should you take a look at all the opposite skilled providers industries, they’re all organized as a partnership of practitioners. And we see the monetary advisory trade as very related. We would like the individuals driving shopper relationships and the revenues of the agency to not solely have an fairness stake within the firm, but additionally to have a voice within the firm.”
Phrases of the Cornerstone deal weren’t disclosed.
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