Morgan Stanley has hired a huge Merrill Lynch Private Wealth Management team based in Florida and New Jersey 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 in addition to 3 clientele associates. They had been generating $7.5 million in annual fees and commissions, according to a person familiar with their practice, and joined Morgan Stanley’s private wealth group for clients with $20 million or even more in their accounts.
The staff had managed $735 million in client assets from 76 households which have an average net worth of fifty dolars million, based on Barron’s, which ranked Catena #33 out of eighty four best advisors in Florida in 2020. Mindy Diamond, an industry recruiter which 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 two years since Barron’s assessed their practice.
Catena, who spent all though a rookie year of his 30-year career at Merrill, did not return a request for comment on the team’s move, which occurred in December, based on BrokerCheck.
Catena decided to move after the son Steven of his rejoined the team in February 2020 and Lawrence began considering a succession plan for his practice, according to Diamond.
“Larry always thought of himself as a lifer with Merrill-with no objective to come up with a move,” Diamond wrote in an email. “But, when his son, Steven, came into the business he soon started viewing the firm of his through a whole new lens. Would it be good enough for the life of Steven’s career?”
The move comes as Merrill is launching a unique enhanced sunsetting program in November which can add an additional seventy five percentage points to brokers’ payout once they agree to leave the book of theirs at the firm, but Diamond said the updated Client Transition Program wasn’t “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, according to FintechZoom.
Beiermeister, that works individually from a part in Florham Park, New Jersey, began the career of his 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 a minimum of the fifth that Morgan Stanley has hired from Merrill in recent months as well as appears to be the biggest. Additionally, it hired a duo with $500 million in assets in Red Bank, New Jersey last month in addition to a pair of advisors producing aproximatelly $2.6 million from Merrill in Maryland.
In December, Morgan Stanley lured a solo producer in California who had won asset growth accolades from Merrill and in October hired a 26 year Merrill lifer in a Chicago suburb that was producing more than two dolars 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 number of new hires offset those that left.
It ended 2020 with 15,950 advisors – 482 more than twelve weeks earlier and 481 higher than at the conclusion of the third quarter. Much 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 its number of branch-based wealth management brokers from its consumer-bank-based Edge brokerage force.