Morgan Stanley has hired a significant Merrill Lynch Private Wealth Management team based in New Jersey and Florida 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 and also 3 client associates. They’d been generating $7.5 million in annual fees and commissions, in accordance with a person familiar with the practice of theirs, and also joined Morgan Stanley’s private wealth team for clients with $20 million or perhaps more in their accounts.
The staff had managed $735 million in client assets from seventy six households who have an average net worth of fifty dolars million, according to 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 two years since Barron’s assessed the practice of theirs.
Catena, who spent all though a rookie year of the 30-year career of his at Merrill, did not return a request for comment on the team’s move, which happened in December, according to BrokerCheck.
Catena decided to move after his son Steven rejoined the team in February 2020 and Lawrence started considering a succession plan for the practice of his, as reported by 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 the son of his, Steven, came into the business he started to view his firm through a new lens. Would it be good enough for the life of Steven’s career?”
The move comes as Merrill is actually launching an innovative enhanced sunsetting program in November that can add an extra seventy five 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 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, according to FintechZoom.
Beiermeister, which works individually from a branch in Florham Park, New Jersey, started the career of his 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 at least the fifth that Morgan Stanley has hired from Merrill in recent months and appears to be the biggest. Additionally, it selected 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 which was producing much 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 in recent years it closed its net recruiting gap to near zero as the number of new hires offset those who left.
It ended 2020 with 15,950 advisors – 482 more than twelve weeks earlier and 481 higher than at the end of the third quarter. Most of the increase came from the addition of more than 200 E*Trade advisors that work largely 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.