Morgan Stanley has hired a huge Merrill Lynch Private Wealth Management team based in New Jersey and Florida as it will add 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 and also three client associates. They’d been generating $7.5 million in annual fees and commissions, in accordance with an individual familiar with the practice of theirs, as well as joined Morgan Stanley’s private wealth team for clients with $20 million or even more in the accounts of theirs.
The group had managed $735 million in client assets from 76 households that have an average net worth of fifty dolars million, according to Barron’s, which ranked Catena #33 out of 84 best advisors in Florida in 2020. Mindy Diamond, an industry recruiter which worked with the group on their move, said that the total assets of theirs were $1.2 billion when factoring in new clients and market appreciation in the two years since Barron’s assessed their practice.
Catena, who spent all but a rookie year of the 30 year career of his at Merrill, didn’t return a request for comment on the team’s move, which occurred 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 the practice of his, based on Diamond.
“Larry always thought of himself as a lifer with Merrill with no objective to come up with a move,” Diamond wrote in an email. “But, when his son, Steven, came into the business he started to view his firm through a brand new lens. Would it be good enough for the life of Steven’s career?”
The move comes as Merrill is actually launching a different enhanced sunsetting program in November that can add an additional 75 percentage points to brokers’ payout once they consent to leave the book of theirs at the firm, but Diamond said the updated Client Transition Program was not “on Larry’s radar” after he had decided to make his move.
Steven Catena started his career at Merrill in 2016 but sojourned at Prudential Investment Management from 2017 until 2020 before rejoining, according to FintechZoom.
Beiermeister, which works individually from a department in Florham Park, New Jersey, started his career at Merrill in 2001, as reported by BrokerCheck. Fonte started her career at Merrill in 2015.
A spokesperson for Merrill didn’t immediately return a request for comment.
The group is a minimum of the fifth that Morgan Stanley has hired from Merrill in recent months as well as appears to be the biggest. Additionally, it employed a duo with $500 million in assets in Red Bank, New Jersey last month in addition to a pair of advisors producing about $2.6 million from Merrill in Maryland.
In December, Morgan Stanley lured a solo producer in California that had won asset growth accolades from Merrill and in October hired a 26-year Merrill lifer in a Chicago suburb which was generating 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 very first time recently it closed its net recruiting gap to near zero as the number of new hires offset those who actually left.
It ended 2020 with 15,950 advisors – 482 more than twelve months earlier and 481 higher than at the conclusion of the third quarter. Most of the increase came out of the inclusion of over 200 E*Trade advisors that work largely 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 its number of branch based wealth management brokers from its consumer-bank-based Edge brokerage force.