Morgan Stanley has hired a significant Merrill Lynch Private Wealth Management team based in Florida and New Jersey as it contributes 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 client associates. They had been generating $7.5 million in annual fees and commissions, in accordance with an individual familiar with their practice, as well as joined Morgan Stanley’s private wealth group for clients with $20 million or more in their accounts.
The group had managed $735 million in client assets from 76 households that have an average net worth of $50 million, as reported by Barron’s, which ranked Catena #33 out of 84 top advisors in Florida in 2020. Mindy Diamond, an industry recruiter who worked with the team on the move of theirs, 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, 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 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 began viewing the firm of his with 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 which can add an additional 75 percentage points to brokers’ payout when 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 the move of his.
Steven Catena started the career of his at Merrill in 2016 but sojourned at Prudential Investment Management from 2017 until 2020 before rejoining, based on FintechZoom.
Beiermeister, who works individually from a department in Florham Park, New Jersey, began his career at Merrill in 2001, according to BrokerCheck. Fonte started the career of her at Merrill in 2015.
A spokesperson for Merrill didn’t immediately return a request for comment.
The group is actually at least the fifth that Morgan Stanley has hired from Merrill in recent months and also seems to be the biggest. In addition, it employed a duo with $500 million in assets in Red Bank, New Jersey last month as well as a pair of advisors producing about $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 who 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 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 months earlier and 481 higher than at the end of the third quarter. A lot of the increase came out of the inclusion of more than 200 E*Trade advisors who 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 the number of its of branch-based wealth management brokers from its consumer-bank-based Edge brokerage force.