Verdence Capital Advisors, a private wealth advisory and multifamily office firm in Hunt Valley, Md., has transacted its first M&A deal with the acquisition of Vantage Private Wealth, a Naples, Fla.-based registered investment advisor (RIA) with about $100 million in assets under management (AUM).
Vantage founder Matthew Pietzak, CFP, and his team of Analyst Andrew Wright and Senior Private Wealth Associate Liz Richter Psota, will now operate under the Verdence brand, giving Verdence its first office in Florida, according to a news release.
Financial details of the transaction were not disclosed. The release reported that the merger brings Verdence's AUM to more than $3.4 billion.
“Matt and his team share our passion for independence and have built an impressive practice since opening their doors six years ago to cater to the very specific needs of South Florida’s high net worth individuals and families,” Verdence founder, CEO and partner Leo Kelly said in a prepared statement. “When we first met Matt, it quickly became apparent that what he was building in Vantage and his client-first philosophy were a perfect fit with the Verdence ethos. I am thrilled to welcome Matt to our team and to have the chance to tell the Verdence story in the Naples marketplace and beyond.”
Pietzak founded Vantage in 2017 after nearly two decades as a financial advisor and private banker, according to the news release. Prior to establishing Vantage, Matthew served as senior vice president and senior relationship strategist at PNC Wealth Management and senior private banker at Wells Fargo Private Bank.
“Wealthy individuals and families benefit most when they have access to a full range of unbiased service offerings, experienced insights, customized financial planning approaches and more,” Pietzak said in the release. “Not only do the Verdence founders and I share the same drive to exceed all of our clients’ expectations, they have also built a robust selection of solutions that would have taken me years to craft on my own.”
Financial Advisor asked Pietzak why he had chosen to partner with a larger firm six years after launching his own advisory business.
“I felt like I took my business as far as I could as a sole practitioner,” he said in an email. “I was spending too much time managing the business and not enough time on the things I enjoy. I missed being part of a larger organization and the relationships I developed with colleagues along the way.”
Pietzak said that when it came to running his practice as a small business, there were unexpected challenges to operating it efficiently.
“Verdence will now be taking care of compliance, real estate, payroll, and my benefits,” he said. “I used to obsess over balancing my QuickBooks, and I believe this merger will help me become more efficient as an advisor.”
He also noted that Florida has a competitive environment for advisors.
“The Florida market is extremely competitive, but the opportunity is virtually unlimited,” Pietzak said in the email. “We built our business from zero to about $100 million in six years, but it was incredibly difficult. I was fortunate to have good people around me that supported our effort, but it took a toll on my personal life. I think it can be more efficient to plug into a larger firm.”
Pietzak said that if a smaller practice has the same cultural fit with a larger partner, it can make a world of difference for both.
“If you can find a large firm that values your work and wants to support your growth, I do think it can be a more effective delivery channel,” he said. “I didn't completely understand the benefits six years ago, but I do today.”
Kelly said the deal represented a good cultural fit.
“We are looking for strong cultural fits that enhance our offering to all clients,” he said in an email. “We look for advisors and teams that want to grow, see our vision clearly, and want to be a part of something bigger than themselves. When we find that fit, then we move - but we are in no hurry.”
Founded in 2017, Verdence Capital Advisors has offices in Hunt Valley, Md.; Alexandria, Va.; and Naples, Fla.