United Capital Financial Advisers announced the acquisition of three separate independent financial advisory firms, with $758 million in combined assets under management.
The deals, marking United Capital's first this year, bring the Newport Beach, Calif.-based advisory firm's assets to $19.3 billion.
United Capital made two acquisitions last year, but there are already plans to add another $1.5 billion worth of advisory assets by the end of this year, according to Matt Brinker, head of United Capital's national partner development.
"Our focus is to scale the scalable, so we can free up our partners to help them make the best financial decisions for their clients," he said.
The new acquisitions, which will adopt the United Capital brand, are Palm Desert, Calif.-based Jensen Wealth Advisors, Elkhart, Ind.-based Compass Wealth Advisors, and Asset One, which has offices in Colorado and Louisiana.
Asset One, with $403 million under management, is the largest of the three advisory firms.
Thomas Baumler, Asset One chief executive, will be among four managing directors and two wealth managers joining United Capital.
"United Capital appeals to us because of its systems for client acquisition, retention and growth," he said. "It didn't require us to reinvent the wheel."
Compass, with $210 million, and Jensen, with $145 million, fall in line with the most-active
advisory firm deals, according to David DeVoe, managing partner at DeVoe & Co.
"The sales of advisers overseeing $100 million to $250 million has been surging the last few quarters and now comprises a third of all RIA sales," Mr. DeVoe said. "United Capital's model strongly resonates with this segment, as the advisers look for scale and greater simplicity overseeing their clients."
Erik Jensen, Jensen Wealth Advisors founder and president, said the United Capital deal "allows us to take our practice to the next level."
"We have always looked at the whole picture of our clients' lives," Mr. Jensen added. "With access to the [United Capital] financial life management tools, we can engage our client on a higher, more scalable level."
Greg Schoenfeld, owner and chief executive of Compass Wealth Advisors, echoed a similar sentiment about joining a larger organization to continue to growing his advisory business.
"When you can get people to think beyond market gyrations and rate of return, and talk to them about what they're trying to do with their lives, it makes a huge difference in the level of service you can provide," he said. "United Capital gives us more resources to do just that."
The acquisition "hat trick," as Mr. DeVoe described it, "will further contribute to the consolidators' buying momentum."
According to Mr. DeVoe's most recent report looking at first-half M&A activity in the RIA space, consolidators acquired 51% of the RIA sellers during the first half of the year.
That's up from 44% during the first half of last year, and 42% during the same period in 2015.
