Morgan Stanley has hired a big 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 as well as three client associates. They’d been generating $7.5 million in annual fees and commissions, according to a person familiar with the practice of theirs, and also joined Morgan Stanley’s private wealth group for clients with twenty dolars million or even more in the accounts of theirs.
The team had managed $735 million in client assets from 76 households who have an average net worth of $50 million, based on Barron’s, which ranked Catena #33 out of 84 best advisors in Florida in 2020. Mindy Diamond, an industry recruiter who worked with the group on their move, 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 the practice of theirs.
Catena, who spent all but a rookie year of his 30 year career at Merrill, did not return a request for comment on the team’s move, which took place in December, based on BrokerCheck.
Catena decided to move after the son Steven of his rejoined the team in February 2020 and Lawrence started considering a succession plan for his practice, based on Diamond.
“Larry always thought of himself as a lifer with Merrill with no purpose to come up with a move,” Diamond wrote in an email. “But, when the son of his, Steven, came into the business he soon started to view the firm of his through a new lens. Would it be good enough for the life of Steven’s career?”
The move comes as Merrill is launching an innovative enhanced sunsetting program in November that can add an additional seventy five percentage points to brokers’ payout whenever 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’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, as reported by FintechZoom.
Beiermeister, that works separately from a department in Florham Park, New Jersey, started the career of his at Merrill in 2001, according to BrokerCheck. Fonte started the career of her at Merrill in 2015.
A spokesperson for Merrill did not immediately return a request for comment.
The group is a minimum of the fifth that Morgan Stanley has hired from Merrill in recent months and also seems to be the largest. In addition, it hired a duo with $500 million in assets in Red Bank, New Jersey last month and a pair of advisors producing aproximatelly $2.6 million from Merrill in Maryland.
In December, Morgan Stanley lured a solo producer in California that had won asset-growth accolades from Merrill and in October hired a 26-year Merrill lifer in a Chicago suburb which was producing 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 number of new hires offset those that left.
It ended 2020 with 15,950 advisors – 482 more than 12 months earlier and 481 higher than at the end of the third quarter. A lot of the increase came from the inclusion of around 200 E*Trade advisors that work primarily from call centers, a Morgan Stanley executive said.
Merrill Lynch, which has stood by the freeze of its 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.