Morgan Stanley has hired a big Merrill Lynch Private Wealth Management team based in New Jersey and Florida as it will add to the list of multi-million-dollar hires from the rival wirehouse.
The group includes Lawrence W. Catena, his son, Steven, Erik Beiermeister, and Mercedes Fonte and also 3 clientele associates. They had been generating $7.5 million in annual fees and commissions, in accordance with a person familiar with their practice, and also joined Morgan Stanley's private wealth group for clients with twenty dolars million or more in the accounts of theirs.
The group had managed $735 million in client assets from 76 households that have an average net worth of fifty dolars million, according to Barron's, which ranked Catena #33 out of 84 top advisors in Florida in 2020. Mindy Diamond, an industry recruiter that worked with the group on the move of theirs, said that the total assets of theirs were $1.2 billion when factoring in new clients and market appreciation in the 2 years since Barron's assessed the practice of theirs.
Catena, who spent all although a rookie year of his 30-year career at Merrill, didn't return a request for comment on the team's move, which occurred in December, based on BrokerCheck.
Catena made the decision to move after the son Steven of his rejoined the team in February 2020 and Lawrence started considering a succession plan for the practice of his, based on Diamond.
"Larry always thought of himself as a lifer with Merrill with no purpose to make a move," Diamond wrote in an email. "But, when his son, Steven, came into the business he soon began to view the firm of his through a brand new lens. Would it be good enough for the life of Steven's career?"
The move comes as Merrill is actually launching a brand-new enhanced sunsetting program in November which can add an additional seventy five percentage points to brokers' payout when they agree to leave the book of theirs at the firm, but Diamond said the updated Client Transition Program was not "on Larry's radar" after he'd decided to make his move.
Steven Catena started the career of his at Merrill in 2016 but sojourned at Prudential Investment Management from 2017 until 2020 before rejoining, according to FintechZoom.
Beiermeister, that works individually from a branch in Florham Park, New Jersey, started his career at Merrill in 2001, as reported by BrokerCheck. Fonte started her career at Merrill in 2015.
A spokesperson for Merrill didn't immediately return a request for comment.
The group is at least the fifth that Morgan Stanley has hired from Merrill in recent months and appears to be the largest. It also selected a duo with $500 million in assets in Red Bank, New Jersey last month as well as a pair of advisors producing aproximatelly $2.6 million from Merrill in Maryland.
In December, Morgan Stanley lured a solo producer in California which had won asset-growth accolades from Merrill and in October hired a 26-year Merrill lifer in a Chicago suburb who was producing much more than $2 million.
Morgan Stanley aggressively re entered the recruiting market last year after a three year hiatus, and executives have said that for the very first time in recent times it closed its net recruiting gap to near zero as the number of new hires offset those who left.
It ended 2020 with 15,950 advisors - 482 more than twelve months earlier and 481 higher than at the end of the third quarter. Much of the increase came from the addition of more than 200 E*Trade advisors that work largely from call centers, a Morgan Stanley executive said.
Merrill Lynch, which has stood by its freeze on veteran broker recruiting put in place in 2017, no longer breaks out its number of branch-based wealth management brokers from its consumer-bank-based Edge brokerage force.