AllianceBernstein keeps RIA acquisition search open after engaging 20 firms

AllianceBernstein’s private wealth division is looking for further growth through RIA acquisitions, executive Onur Erzan confirmed to InvestmentNews on Monday following the publicly-traded company’s third quarter earnings announcement.

“I'm confident that we will find like-minded advisors to add to our platform, either through RIA acquisitions or through other types of hiring or team lift-outs. This year alone we looked at 20-plus RIAs in the marketplace, but we haven't found the one or ones that were best fit for us yet,” said Erzan, head of private wealth at AllianceBernstein.

Bernstein Private Wealth Management (PWM) reached $153 billion in AUM as of its Q3 earnings report, which said the channel recorded its highest organic gain of the past 10 quarters with net-new-assets increasing at 7% annualized rate this past quarter. The private wealth channel now represents 18% of all assets at AllianceBernstein.

PWM’s ultra-high-net-worth base of clients investing at least $20 million in assets is the division's fastest-growing segment, according to the company. Erzan added that 72% of PWM’s assets are from clients with at least $5 million invested with AllianceBernstein. 

“We are definitely achieving greater growth with the ultra high network segments. We are seeing enhanced activity with family offices and global families. We've built a lot of specialized capabilities to serve those client types,” said Erzan, as PWM’s assets under management have jumped 45% under his leadership since 2022.

Erzan specified Dallas and Denver as cities with “a lot of growth potential,” adding that Charlotte, NC, and Arizona are attractive markets where AllianceBernstein does not have a current office presence. Citywire reported in July that AllianceBernstein was in talks to acquire SOL Capital Management, a Maryland-based RIA with roughly $3 billion in AUM.

“We are not in the negotiations or final stages of an acquisition in the RIA segment,” Erzan said Monday. “We created a dedicated team to survey and monitor the RIA space, build connectivity with the bankers that focus on the RIA marketplace, and also started a more outbound program to be in touch with those advisors nationally.”

The asset management side of Alliance Bernstein began selling advisor services to RIAs in 2023. As of June, AllianceBernstein’s RIA sales were up 35 percent year-to-date. The company’s private wealth arm announced three leadership changes in July as the firm stressed its new inorganic growth plan to buy RIAs and expand its ultra-high-net-worth client presence.

“We are not chasing a specific number of deals or specific numbers in terms of financial spreadsheets,” Erzan said of his firm’s M&A approach. “Some of the private equity-backed platforms tend to be very spreadsheet and numbers driven, we take a longer term view. For us, the focus is finding the right teams with the right culture, long-term orientation, and the fiduciary mindset.”