Morgan Stanley has hired a huge Merrill Lynch Private Wealth Management team based in Florida and New Jersey as it contributes 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 as well as 3 clientele associates. They had been generating $7.5 million in annual fees and commissions, in accordance with an individual familiar with their practice, and also joined Morgan Stanley’s private wealth team for clients with $20 million or more in the accounts of theirs.
The group had managed $735 million in client assets from seventy six households which have an average net worth of fifty dolars million, based on Barron’s, which ranked Catena #33 out of eighty four top rated advisors in Florida in 2020. Mindy Diamond, an industry recruiter that worked with the group on the move of theirs, said that their total assets were $1.2 billion when factoring in new clients and market appreciation in the 2 years since Barron’s assessed their practice.
Catena, who spent all but a rookie year of the 30 year career of his at Merrill, didn’t return a request for comment on the team’s move, which happened in December, as reported by BrokerCheck.
Catena made the decision to move after his son Steven rejoined the team in February 2020 and Lawrence began considering a succession plan for his practice, based on Diamond.
“Larry always thought of himself as a lifer with Merrill-with no objective to make a move,” Diamond wrote in an email. “But, when his son, Steven, came into the business he soon began viewing his firm with 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 completely new enhanced sunsetting program in November that can add an additional 75 percentage points to brokers’ payout whenever they consent 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 had decided to make the move of his.
Steven Catena started his career at Merrill in 2016 but sojourned at Prudential Investment Management from 2017 until 2020 before rejoining, as reported by FintechZoom.
Beiermeister, who works individually from a department in Florham Park, New Jersey, began his career at Merrill in 2001, based on BrokerCheck. Fonte started her career at Merrill in 2015.
A spokesperson for Merrill did not immediately return a request for comment.
The group is actually a minimum of the fifth that Morgan Stanley has hired from Merrill in recent months and also seems to be the biggest. Additionally, it employed a duo with $500 million in assets in Red Bank, New Jersey last month and a pair of advisors producing about $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 generating 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 recently it closed its net recruiting gap to near zero as the amount 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. Most of the increase came from the inclusion of over 200 E*Trade advisors that work primarily 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 the number of its of branch-based wealth management brokers from its consumer-bank-based Edge brokerage force.