Cerity Adds $2.1B Through Three RIA Mergers
Cerity Partners has completed three mergers that add approximately $2.1 billion in assets under management and extend the national wealth manager’s presence in Silicon Valley, Atlanta and Minneapolis.
The New York-based registered investment advisor merged with Palo Alto, California-based Cornerstone Capital, Atlanta-based Compass Wealth Management and Minneapolis-area Echo Wealth Management. Each firm will operate under the Cerity Partners name, and financial terms were not disclosed.
The largest transaction involves Cornerstone Capital, a Palo Alto firm founded in 1978 that manages approximately $1.4 billion. Cornerstone serves high-net-worth individuals, families, charitable foundations and endowments, offering investment management, financial planning, estate planning and tax coordination. The merger expands Cerity’s reach in Silicon Valley.
Compass Wealth Management contributes about $340 million in assets and strengthens Cerity’s position in the Atlanta area. Founded in 2011 by Robert Amato, Compass is a fee-only advisory firm serving corporate executives, business owners and retirees. Its services include investment management and holistic wealth planning for private and corporate clients.
Echo Wealth Management, founded in 2015 by Echo Huang, adds approximately $337 million and gives Cerity its first foothold in Minnesota. The Minneapolis-area boutique firm integrates tax, estate, insurance and investment planning, reflecting an increasing industry emphasis on delivering coordinated planning services rather than stand-alone portfolio management.
The three transactions come as RIA consolidation continues to reshape the wealth-management business. Acquiring firms seek additional scale, geographic coverage, specialized planning capabilities and recurring advisory revenue, while smaller advisers often gain access to centralized investment research, tax expertise, technology, compliance and operational support.
Cerity reports more than $206 billion in assets under management following the additions. The firm has been active in pursuing a national growth strategy, recently expanding in the Midwest through its merger with West Des Moines, Iowa-based Gilbert & Cook. Cerity also entered Oregon through its merger with Cordant Wealth Partners earlier this year.
Turkey Hill Management represented Echo Wealth Management in this combination, and Troutman Pepper Locke provided legal counsel. Morgan, Lewis & Bockius provided legal counsel to Cerity Partners in this combination.