Credent Wealth Management, based in Auburn, Ind., has acquired a Cincinnati-based advisor that manages $450 million in client assets.
Credent said the acquisition of Clarify Wealth Management, a fee-only advisor serving middle-class clients, expands its footprint into Columbus, Ohio, and Lafayette, Ind., where Clarify has locations, according to a Tuesday press release.
The deal increases Credent's assets under management to $3.2 billion.
The acquisition of Clarify is Credent’s 13th in six years. Credent CEO David Hefty told Financial Advisor that the transaction should put the acquisitive RIA on a trajectory to pass $5 billion in assets in the next two to three years.
“I think over the next three years easily bringing on a billion dollars a year in assets,” said Hefty, who help found Credent in 2018. “We’re working through our pipeline right now and trying to figure out which deal we want to do next. There’s a lot of opportunities.”
Credent’s pipeline includes possible strategic partnerships or minority investments besides outright acquisitions and the CEO said “there should be a few announcements” in the first quarter of next year.
Targeting The Succession Market
Hefty declined to disclose the financial terms of the Clarity purchase, but the transaction aligns with management’s M&A strategy of buying RIAs ready to undergo succession plans. It’s a big market; Cerulli estimates that 109,093 advisors, or 37.5% of industry headcount, plan to retire in the next decade and those exiting in five or fewer years represent $2.4 trillion, or 9% of industry assets.
Credent noted that the acquisition provides a succession plan for the three founding partners of Clarify: CEO James Brandenburgh, CFO Aubrey Ramey and Chief Investment Officer Brad Clark. Clarify Wealth’s next generation of advisors will also join Credent as partners, according to the release, and the team, which includes seven planners and two operational support staff members, will join Credent’s service model.
The integration will also enhance the investment solutions available to Clarify’s clients, including Credent’s unified managed account platform, and allow Clarify to leverage Credent’s technology and resources, Credent said.
Clarify team’s "unwavering commitment to client service resonates deeply with our own values, and it feels like a perfect fit,” CHefty said in a statement. “This partnership isn’t just about business; it’s about building relationships and enhancing the experience we provide to our clients in Cincinnati and beyond.”
Brandenburgh likens the partnership to a “good marriage” built on “trust and shared values.”
“We truly believe we’ve found the perfect match in Credent Wealth," Brandenburgh said in a statement. "Their dedication to personalized client care resonates deeply with us, making this feel like coming home. Together, we’re excited to enhance our services and offer our clients even more resources and innovative solutions.”
“Actively Talking” To 400 Advisors
In the interview, Hefty maintained that his firm has the financial resources to fund its aggressive M&A strategy, which has pushed AUM from $250 million just six years ago. He pointed to a cash infusion this summer from Crestline Investors, an alternative investment manager with more than $18 billion in AUM.
The CEO also noted that Credent is “actively talking” to more than 400 advisors in its pipeline, all more than 65 years old, and management wants to do just two to three transactions a year, aiming for a high-single- to low-double-digit organic growth pace. Much of that organic growth comes from unsolicited referrals or clients approaching Credent, he said.
“Call-ins [are] our number one organic growth driver,” he said.
Hefty also emphasized that the company has flexible deal terms for those advisors. “We’ll do a minority stake or just a full acquisition,” Hefty said. “There are ways to put your toe in the waters and ease into your succession plan with us. We kind of meet the advisors where they are.”