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Ron Carson
Ron Carson

Carson Wealth Invests in $1B AUM Pinnacle Financial

Texas-based Pinnacle Financial Group is the largest firm to date to choose Carson Group’s equity partnership option.

A Texas-based wealth manager overseeing $1.1 billion in client assets joined Carson Wealth on Friday, making it the largest firm to pay the price of ownership to partner with the fast-growing registered investment advisor.

Michael David, the founder and CEO of Pinnacle Financial Group, which has 28 employees based in five offices in Texas and Kansas, will maintain a majority owner of 75 percent of the firm and spearhead his group’s strategic and operational decisions. But Pinnacle Financial will discontinue as a stand-alone brand as part of the deal with Carson, the company said in a statement. The group’s website already began diverting visitors to Carson Wealth’s on Friday.

The two firms already had a relationship with each other. Pinnacle Financial was previously part of the Carson Group Partner model (previously called Carson Institutional Alliance), and was one of the top three partnering firms, a Carson Group spokesperson said.

As minority owners, Carson Group receives a percentage of the profits of each firm it acquires a stake in. Should the two parties mutually agree to separate as owners, the advisors receive the right of first refusal, allowing them to buy back ownership of the business before other parties.

“It’s a transformational leap for both our team and our brand; I’m having the time of my life,” David said in a statement about the deal. “Overnight, we’ve elevated our national presence as one of the most recognized financial services brands in the country, while keeping the interests of our clients at the forefront.

RIA support platforms like Carson’s are experimenting with different models of compensation and equity ownership of the firms they work with. For example, under a revenue program at Dynasty Financial Partners, advisors can sell up to 10 percent of their revenue stake to Dynasty Capital Strategies and use the funds for expansion or acquisition of other firms. Over half of Dynasty’s roughly 45 firms have participated in the capital program, according to Sally Cates, company spokesperson.

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