Modern Wealth Management, a registered investment advisory backed by private equity launched last year of former United Capital executives, has acquired Petso Financial Consultants, a fee-only RIA with approximately $1.4 billion in assets under management. The Boise, Idaho-based firm represents the first office west of Kansas City to join Modern Wealth, bringing the RIA's total AUM to over $6 billion.
This is Modern Wealth's 11th deal completed in the 18 months since its inception, including its sixth this year. This is the firm's third transaction of $1 billion or more.
“We're building the scale we set out to build, and we're finding incredible talent and great operators across the country who are interested in joining,” said Jason Gordo, co-founder and president of Modern Wealth.
Petso Financial was founded in 2001 by David Petso, who will become a managing director at Modern Wealth. The firm's 10-person team has joined as W2 employees. These include advisors Jennifer Stone, Thomas Brown, Michael Jillson, Richard Petso, Melissa Hassler and Trevor Klugh.
Gordo said David Petso is well-known in the Boise financial services community, where he has hosted a radio show for more than 30 years and also appeared on local TV.
Prior to joining Modern Wealth, Petso Financial was registered with Mutual Securities for brokerage business, but operated under its own ADV for advisory business. David Petso said he is maintaining registration with Mutual Securities for next year as the company wraps up its legacy business there. The firm was with Cambridge Investment Research for 14 years before that.
“Joining Modern Wealth presented a unique opportunity that aligned well with Petso's rapid customer growth,” David Petso said in a statement. “It wasn't about going into a plug-and-play firm; it was about joining a dynamic, fast-growing team where we could be an integral part of the journey.”
The latest deal follows Modern Wealth's The July acquisition of Knoxville, Tenn.-based C&J Wealth Advisorswhich has $260 million in AUM.
Gordo said the firm continues to build a national footprint, with plans to add offices on the West Coast this year. RIA has an eye on key markets, including Seattle, Portland, Ore., the San Francisco Bay Area, the Los Angeles area, Scottsdale, Ariz., Las Vegas, Dallas, Houston, Denver and Salt Lake City. They will also build on their existing footprint in the East.
The Petso team will have access to Modern Wealth's client service platform and the lead-generating “Organic Growth Center” the firm built in Kansas City. The firm hires recent college graduates to teach them the business from the ground up and provide “warm” leads. The hub uses a radio program and podcast produced by the RIA's first acquisition, Barber Financial, which has successfully attracted new business to the firm. The team also uses digital channels, organic search and other strategies to reach prospects. About two dozen people work at the center.
“Our job is to generate tens of thousands of customers (prospects) every month and drive them to the growth center,” Gordo said. “And then really allow gatekeeper associates the ability to sift through that list of thousands of names and put on advisors' calendars only those suspects who have warmed to what I call 'potential status.'”
Modern Wealth was founded last year by Gordo and co-CEOs Gary Roth and Mike Capelle, who worked together at United Capital, which was acquired by Goldman Sachs in 2019. They hope to rapidly build a full-service national firm , both through acquisition and through organic. growth programs. Advisors are under an ADV, are W-2 employees and share the Modern Wealth brand. The firm uses Charles Schwab and Fidelity for custody.
Crestview, a private equity firm, invested $200 million in Modern Wealth. Of the firm Barber Financial's first acquisition gave Modern Wealth the infrastructure, technology and talent it needed to get off the ground, executives said. Barber consists of Barber Financial Group, an RIA led by CEO and founder Dean Barber; Osiwala Financial Group, a subsidiary headed by President Ken Osiwala; and Financial Assurance, an acquired practice led by President Bud Kasper.