Minneapolis-based Wealth Enhancement Group, an acquisitive RIA with almost $82 billion in client assets, has picked up a hybrid Maryland firm with more than $502 million in AUM.
Located in the Baltimore suburb of Columbia, Lynch Retirement Group includes three advisors and three support staff and was previously affiliated with Raymond James for brokerage and advisory services.
The firm, which was established in 1997 by John Lynch and has a satellite office in Fairfax, Va., provides financial planning, customized portfolio management and annuity assessment for individuals saving for retirement.
Lynch will become a senior advisor at WEG.
“By partnering with Wealth Enhancement Group, our team will gain access to more resources and services to better serve our clients,” he said in a statement.
“Our combined strengths will foster an even more robust and comprehensive financial planning environment,” added Jim Cahn, who recently became chief strategy officer at WEG.
This is WEG's fourth location in Maryland and is the third acquisition announced by the firm in 2024. Among the most active RIA buyers of the last few years, WEG completed 18 deals last year, 14 in 2022 and 16 in 2021.
Founded in 1997, WEG has grown assets from around $4 billion to nearly $82 billion since it sold a majority stake to Lightyear Capital in 2015. When TA Associates bought out Lightyear Capital’s investment in 2019, the firm was overseeing around $12 billion.
By the time Onex Partners took ownership in 2021, WEG was managing close to $40 billion.
“We’re probably as busy as we’ve ever been,” Cahn told WealthManagment.com earlier this month, explaining that deals are sourced through investment bankers, broker/dealer introductions and referrals from WEG’s advisors.
“That's something I'm really proud of because people come here and they're happy,” he said, referencing a January piece written by Russ Alan Prince and Jerry Price for Financial Advisor. “I saw a study recently that said 55% of advisors regret doing their deal, and I know that that's not the case with us, because our advisors are actually telling their friends to come join us and it’s been a really big source of growth for us.
“We'll continue to do deals on a national basis,” he added. We’re not just doing M&A for the assets or the EBITDA; we’re doing M&A because we want talent and because we think we can help that talent grow. Because of that, next-generation advisors, even if they’re older, are really important to us.”
Cahn said he expects to hit the $100 billion mark in the next couple of years, even if WEG does no more deals. The firm boasts a 22% organic growth rate, supported by a dedicated marketing department with a doctor of anthropology on staff.
“The sky’s the limit,” he said.
Earlier this year, WEG closed deals to buy Landmark Financial Advisors in Bowling Green, Ken., with $543 million in assets, and Piermont Wealth Management, a New York firm with more than $220 million.