David Canter, who resigned as head of Fidelity Investments’ RIA custodial business earlier this week, has joined Austin, Texas-based Bluespring Wealth Partners as president, the company announced this morning. Canter replaces Stuart Silverman, who is moving into the role of chairman.

Bluespring is an RIA acquirer backed by Kestra Holdings. It has acquired six RIA firms since it was formed in 2019.

Canter is charged with overseeing M&A transactions strategic planning and organic growth, according to a press release. In more than a decade at Fidelity, he led or participated in numerous areas supporting the custodian’s RIA clients, including practice management technology and growth consulting.

Canter’s move from giant Fidelity to a relatively young private equity-backed acquirer underscores the attraction and growth potential that consolidators can offer to lure top executives at even the largest financial services firms in the nation. In February, 2019, Kestra was recapitalized by Warburg Pincus, a giant private equity firm that took a majority stake in the broker-dealer network.

That transaction valued Kestra at about $800 million. Shortly thereafter, Kestra signaled its intent to expand into the RIA space with the launch of Bluespring. In the private equity world, acquirers have been willing to pay much higher multiples in recent yerars, sometimes twice as much, for RIA firms as they will shell out for brokerage firms, a fact certainly not lost on Kestra and its backers.

As head of Fidelity's custody business, Canter built relationships with thousands of RIA firms and was viewed a popular figure. "David's kind, empathetic and very strategically focused leadership has provided Fidelity custody [business] with a lot of success and growth," said Philip Palaveev, principal of The Ensemble Practice. "Now Bluespring will benefit from his incredible insight into the industry and his great relationships throughout the advisory community."  

In particular, his contacts should provide Bluespring with certain advantages over the scores of other acquirers circling the RIA universe. "David’s deep understanding of the industry supports our mission to empower RIA and wealth management firm owners to elevate their businesses,” said Kestra president and CEO James Poer in a prepared statement.

An attorney by training, Canter has previous experience at Schwab and has also worked as an advisor early in his career. Several RIAs who are Fidelity clients said his background as an advisor provided him with keen insights into their business.

“I am excited to join Bluespring and build on the success of Stuart and the entire team,” Canter said in a prepared statement. “Working in an entrepreneurial environment that prizes the individuality and independence of RIAs and wealth management firms in a supportive environment is energizing. I look forward to collaborating with our partner firms, the team, and Stuart as we continue to expand the Bluespring footprint.”