Morgan Stanley has hired a big Merrill Lynch Private Wealth Management team based in New Jersey and Florida 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 a person familiar with their practice, and also joined Morgan Stanley’s private wealth group for clients with $20 million or more in their accounts.
The group had managed $735 million in client assets from seventy six households that have an average net worth of $50 million, according to Barron’s, which ranked Catena #33 out of 84 top rated advisors in Florida in 2020. Mindy Diamond, an industry recruiter which 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 however, 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 began considering a succession plan for his practice, as reported by Diamond.
“Larry always thought of himself as a lifer with Merrill with no objective to create a move,” Diamond wrote in an email. “But, when his son, Steven, came into the business he began viewing the firm of his through a whole new lens. Would it be good enough for the life of Steven’s career?”
The move comes as Merrill is actually launching a brand-new enhanced sunsetting program in November that can add an extra seventy five percentage points to brokers’ payout once they consent to leave their book at the firm, but Diamond said the updated Client Transition Program wasn’t “on Larry’s radar” after he had 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, according to FintechZoom.
Beiermeister, that works individually from a branch in Florham Park, New Jersey, started the career of his at Merrill in 2001, according to 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 at least the fifth that Morgan Stanley has hired from Merrill in recent months and also appears to be the largest. In addition, it employed a duo with $500 million in assets in Red Bank, New Jersey last month as well as 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 who 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 recently 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 weeks earlier and 481 higher than at the end of the third quarter. Most of the increase came out of the addition of over 200 E*Trade advisors that work largely from call centers, a Morgan Stanley executive said.
Merrill Lynch, that has stood by the freeze of its 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.