Minneapolis-based Wealth Enhancement Group, the registered investment advisor with more than $85.3 billion in client assets, has acquired Starfox Financial Services, an RIA with more than $254 million in assets. The Woodlands, Texas-based firm represents WEG's sixth location in Texas.

Starfox was founded in 2006 by consultant Jose Palafox; today, he continues to lead the firm alongside partner and wealth advisor Bill Friebel. Their clientele includes professionals, business owners, retirees and their families.

Jose Palafox

Palafox said he looks forward to bringing WEG's tax and estate planning capabilities to his clients.

Bill Friebel

The settlement comes just a week after a man who claims to have co-founded WEG filed a lawsuit against the acquiring RIA, alleging it refused to pay him “finder's fees” for firms the company bought.

Gerald “Jerry” Bernard filed the lawsuit in Minnesota's Hennepin County, seeking more than $50,000. According to the lawsuit, Bernard has over 40 years in the wealth management industry and co-founded WEG with his wife, Madeline, in 1996.

A WEG spokesman said the claims have no merit and the firm will defend against them.

In June, WEG announced the acquisition of Atlas Fiduciary Financial, a Florida and New Jersey-based RIA with $219 million in client assets. At the end of May, the firm acquired the Financial Advisory Groupa $1.2 billion Houston RIA.

Among the most active RIA acquirers in recent years, WEG completed 18 deals last year, 14 in 2022 and 16 in 2021.

Founded in 1997, WEG has grown from $4 billion in AUM to more than $85 billion since it sold a majority stake to Lightyear Capital in 2015. TA Associates bought Lightyear Capital's investment in 2019 when the firm oversaw about $12 billion . Onex Partners took ownership in 2021, just as the firm approached $40 billion in AUM.