Minneapolis-based Wealth Enhancement Group, an acquirer RIA with almost $82 billion in client assets, has selected a Maryland hybrid firm with more than $502 million in AUM.
Located in suburban Baltimore, Columbia, Lynch Retirement Group includes three advisors and three support staff and was previously affiliated with Raymond James for brokerage and advisory services.
The firm, which was founded in 1997 by John Lynch and has a satellite office in Fairfax, Va., provides financial planning, personalized portfolio management and retirement planning to individuals saving for retirement.
Lynch will become a senior advisor at WEG.
“By partnering with Wealth Enhancement Group, our team will have access to more resources and services to better serve our clients,” he said in a statement.
“Our combined strengths will foster an even more robust and comprehensive financial planning environment,” added Jim Cahn, who recently became chief strategy officer in WAY.
This is WEG's fourth Maryland location and the firm's third announced acquisition of 2024. Among the most active RIA acquirers of recent years, WEG completed 18 deals last year, 14 in 2022 and 16 in 2021 .
Founded in 1997, WEG has grown assets from about $4 billion to nearly $82 billion since it sold a majority stake to Lightyear Capital in 2015. When TA Associates bought Lightyear Capital's investment in 2019, the firm oversaw about $12 billion.
At the time Onex Partners took ownership in 2021, WEG was managing approximately $40 billion.
“We're probably as busy as we've ever been,” Cahn said WealthManagement.com earlier this month, explaining that deals are obtained through investment bankers, broker/dealer introductions and referrals from WEG advisors.
“That's something I'm really proud of because people come here and they're happy,” he said, referring to a January article written by Russ Alan Prince and Jerry Price for The Financial Advisor. “I saw a study recently that said 55% of advisors regret doing their deal and I know that's not the case with us because our advisors are actually telling their friends to come join us and there been a really big source of growth for us.
“We will continue to make agreements on a national basis,” he added. We're not just doing M&A for assets or EBITDA; we're doing M&A because we want talent and because we think we can help that talent grow. Because of this, the next generation of advisors, even if they are older, are really important to us.”
Cahn said he expects to hit the $100 billion mark in the next two years, even if WEG no longer makes deals. The firm boasts an organic growth rate of 22%, supported by a dedicated marketing department with a PhD in anthropology on staff.
“The sky's the limit,” he said.
Earlier this year, WEG closed the deal to buy Brand Financial Advisors in Bowling Green, Ken., with $543 million in assets, and Piermont Wealth Managementa New York firm with more than $220 million.