$129B Merrill breakaway team launches with Dynasty as wirehouse files lawsuit

A team of former Merrill Lynch advisors who oversaw $129 billion in client assets has launched OpenArc Corporate Advisory, a new national RIA headquartered in Atlanta, with backing from Dynasty Financial Partners and Charles Schwab.

The move has also prompted a lawsuit from Merrill Lynch, which alleges a “pre-meditated corporate raid” and seeks to block the team from soliciting clients or disclosing trade secrets.

OpenArc enters the market with a focus on integrating corporate benefits, executive services, and private wealth management for employers, executives, and families. The firm’s founders, previously recognized by Barron’s as the top-ranked institutional consulting team and the number three private wealth team, say they are responding to growing demand for more closely aligned benefits and wealth solutions.

OpenArc’s offering spans institutional consulting, executive financial planning, employee education, and full-spectrum wealth management, including family office services.

“Our institutional clients have consistently told us that traditional brokerage models no longer meet the needs of their people,” Jeff Crowell, managing partner at OpenArc, said in a statement announcing the launch Wednesday. He added that the firm’s approach is designed to offer “better tools, greater choice, and personalized service” to clients at all levels.

OpenArc’s platform targets large employers seeking a unified approach to employee benefits and financial planning. The team, which previously served more than 95 Fortune 1000 companies, expects to expand its reach as an independent RIA. 

Senior managing partner Erik Bjerke said OpenArc’s mission is to “[empower] families by delivering the same expert care and resources typically reserved for corporations.” He described the integration of corporate benefits and family financial services as a defining trend for the future of wealth management.

The firm is also launching a charitable fund, with a portion of annual net profits dedicated to supporting underserved communities across the US. Managing partner Jim Kaufman said the firm’s culture is defined by a mindset of generosity, which has guided its approach for more than two decades.

The firm’s launch is supported by strategic relationships with Charles Schwab and Dynasty Financial Partners. Schwab will provide custodial and operational support, while Dynasty’s technology platform underpins OpenArc’s service delivery.

Dynasty has also taken a minority equity stake in the firm, with CEO Shirl Penney joining OpenArc’s board.

“We’re incredibly impressed with the OpenArc team and their vision,” Penney said in the statement, calling the partnership an example of a “client-focused model” that could shape the industry’s future.

Merrill Lynch, however, has moved quickly to challenge the team’s departure. In a lawsuit filed in federal court in Atlanta, the company accuses the advisors, Schwab, and Dynasty of conspiring to divert business and staff, violating employment contracts, and misappropriating trade secrets. Merrill is seeking immediate injunctive relief and monetary damages.

The breakaway move from Merrill represents the second loss of a powerhouse team from Merrill in as many years, following last year's defection of a $28 billion team in LA to rival Wall Street firm JPMorgan.

In a statement provided to InvestmentNews, a spokesperson for Dynasty said it "takes the protocol for broker recruitment very seriously."

"We are also strong advocates for advisor and client choice and believe that leadership by fear is not a long-term strategy on how to retain the best advisors and serve their clients over time," the statement continued. "Fear will not dictate the actions of the most independent minded advisors who seek the best outcome for their clients, teams, and their families.

Correction: This story has been updated to correct previous wording overstating the likely magnitude of the former Merrill team's move in terms of assets.