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 as well as three client associates. They’d been generating $7.5 million in annual fees and commissions, in accordance with an individual familiar with their practice, as well as joined Morgan Stanley’s private wealth team for clients with $20 million or even more in their accounts.
The staff had managed $735 million in client assets from seventy six households who have an average net worth of fifty dolars million, based on Barron’s, which ranked Catena #33 out of 84 top advisors in Florida in 2020. Mindy Diamond, an industry recruiter which worked with the team 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 but a rookie year of the 30 year career of his at Merrill, didn’t return a request for comment on the team’s move, which occurred in December, based on BrokerCheck.
Catena decided to move after the son Steven of his rejoined the team in February 2020 and Lawrence began considering a succession plan for the practice of his, based on 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 the son of his, Steven, came into the business he began to view his firm 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 new enhanced sunsetting program in November that can add an extra 75 percentage points to brokers’ payout whenever they agree to leave their book at the firm, but Diamond said the updated Client Transition Program was not “on Larry’s radar” after he’d decided to make the move of his.
Steven Catena started the career of his at Merrill in 2016 but sojourned at Prudential Investment Management from 2017 until 2020 before rejoining, as reported by FintechZoom.
Beiermeister, who works individually from a part in Florham Park, New Jersey, began the career of his 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 actually a minimum of the fifth that Morgan Stanley has hired from Merrill in recent months as well as appears to be the biggest. Additionally, it hired a duo with $500 million in assets in Red Bank, New Jersey last month in addition to a pair of advisors producing about $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 that was generating 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 very first time in recent years it closed its net recruiting gap to near zero as the number of new hires offset those who left.
It ended 2020 with 15,950 advisors – 482 more than twelve months earlier and 481 higher than at the end of the third quarter. Most of the increase came out of the addition of more than 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 its number of branch based wealth management brokers from its consumer-bank-based Edge brokerage force.