The upcoming merger of two Advisor Group-affiliated firms will create a Super-OSJ that will have $9 billion in client assets and will supervise 180 independent financial professionals, Advisor Group announced.
GenXFinancial, a wealth management firm specializing in continuity, succession planning and facilitating growth for financial professionals, is acquiring Boston Partners Financial Group. GenXFinancial will then be the largest Super-OSJ affiliated with Advisor Group’s subsidiary, Royal Alliance Associates. Both firms are part of the Royal Alliance Associates network. Terms of the deal were not announced.
The move is part of an aggressive growth strategy for both GenXFinancial and for Advisor Group, Brian Heapps, GenXFinancial president and CEO, and Todd Fulks, Advisor Group senior vice president of succession and acquisition, agreed during an interview yesterday.
Heapps noted that the acquisition reinforces what is happening in the financial industry as a whole in which advisory firms are creating scale to enable themselves to provide the resources next-generation advisors need for success.
“These deals create firms that can have the scale and capacity to add hundreds of clients seamlessly,” Fulks said. “The firms that are merging need to have the same culture.”
Heapps noted that several studies have shown that more than 60% of advisory firms do not have a formal succession plan in case the owner retires or becomes disabled. Part of GenXFinancial’s core mission is to help advisors fill that gap as more advisors use turnkey succession firms.
GenXFinancial is among the largest and fastest-growing OSJs in the country, benefiting from its focus on succession planning and facilitating growth for the next generation of financial professionals, which fills a core need in the industry, Heapps said. GenXFinancial is made up of its main business, Innovative Financial Group, as well as MyRemoteFA and SellMyFinancialPractice. The combination of the three entities “provides a clear blueprint for next generation financial professionals seeking to build their firms and develop long-term client relationships,” Heapps said.
Boston Partners Financial Group, led by Mark Marroni for more than 20 years, is a New England-based financial advisory firm and Super-OSJ with 53 independent advisors, overseeing approximately $4.5 billion in total client assets. Following the close of the transaction, Marroni will continue to lead his own ensemble practice affiliated with GenXFinancial, and will operate under the Boston Partners Financial Group brand.
Heapps said in a statement, “GenXFinancial is creating a powerful platform for the next generation of financial advisors to own and run independent businesses. With Boston Partners Financial Group as part of our team, we are in a stronger position than ever to accelerate the careers of rising financial professionals.”