Modern Wealth Management, a private equity-backed RIA started by former United Capital executives, is acquiring three new firms totaling more than $500 million in assets under management.
The new additions bring Modern Wealth to over $6.5 billion in AUM.
Modern Wealth's newest acquisitions include Lenexa, Kan.-based Fiser Group, as well as Gardey Financial Advisors and LFM Wealth Management, based in Saginaw, Mich., respectively. and Chapel Hill, NC. The firms will adopt the Modern Wealth brand as part of the deal.
The three acquisitions bring Modern Wealth's annual deal count to eight and to 13 overall since the firm's inception in April 2023. Modern Wealth will now have 16 client offices in 12 states. including the recent addition of Petso Financial Consultantsa $1.4 billion Idaho-based firm.
According to Jason Gordo, co-founder and president of Modern Wealth, the three new firms “represent a unique aspect of Modern Wealth's growth trajectory.”
“With Fiser Group, we enhance our tax expertise in an industry where top tax talent is dwindling,” said Gordo. “Gardey strengthens our presence in Michigan as LFM establishes our footprint in the fast-growing North Carolina market.”
The acquisition of Fiser Group will bring nine tax and financial professionals to Modern Wealth, strengthening the firm's existing team in Lenexa. Gardey Financial, founded in 1985, is a fee-only firm led by Jonathan Gardey. Six financial professionals will join Modern Wealth and work closely with the firm's Troy, Michigan office.
LFM is also an independent, fee-only firm led by Larry McManus that provides personalized planning and management services for families and businesses. Modern Wealth is opening an office in North Carolina and adding three advisors as part of the acquisition.
Firms that join the Modern Wealth brand get access to its client service platform and lead-generating “Organic Growth Center” operating out of Kansas City, in which it hires recent college graduates to show them industry ropes forcing them to provide leads and produce a radio program and podcast to reach potential clients (about two dozen people work at the center).
Gordo founded the firm with fellow former United Capital executives Gary Roth and Mike Capellewho act as its co-executive directors. Seeking an entry into the RIA space, private equity firm Crestview Partners invested $200 million in the firm, becoming its lead player.
The firm's co-founders intended to build a full-service, national organization with advisors who would be under an ADV as W-2 employees. Modern Wealth uses Charles Schwab and Fidelity for custody.
Of the firm initial acquisition of Barber Financial provided the infrastructure, technology and talent needed to launch in 2023. Barber included offices in Kansas, Michigan and Missouri, with more than 2,300 clients, $1.5 billion in assets under management and a team of approximately 50 employees, including CFP, CPA and wealth and insurance specialists.