Morgan Stanley has hired a big 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’d 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 perhaps more in their accounts.
The staff had managed $735 million in client assets from seventy six households that 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 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 two years since Barron’s assessed their practice.
Catena, who spent all but 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 happened in December, as reported by 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 create a move,” Diamond wrote in an email. “But, when the son of his, Steven, came into the business he began to view the firm of his with a whole new lens. Would it be good enough for the life of Steven’s career?”
The move comes as Merrill is launching an innovative enhanced sunsetting program in November that can add an extra seventy five percentage points to brokers’ payout when they consent to leave their book at the firm, but Diamond said the updated Client Transition Program was not “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, as reported by FintechZoom.
Beiermeister, which works separately 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 did not 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 appears to be the largest. In addition, it selected a duo with $500 million in assets in Red Bank, New Jersey last month and a pair of advisors producing about $2.6 million from Merrill in Maryland.
In December, Morgan Stanley lured a solo producer in California who 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 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 recently 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 12 weeks earlier and 481 higher than at the conclusion of the third quarter. Most of the increase came out of the addition of over 200 E*Trade advisors who work largely from call centers, a Morgan Stanley executive said.
Merrill Lynch, which 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.