Independent wealth management firm Wealth Enhancement Group is to acquire HHG & Company, (HHG), a wealth management firm based in Darien, Connecticut.
Wealth Enhancement Group and its RIA Wealth Enhancement Advisory Services have nearly USD4.5 billion in client brokerage and advisory assets and HHG has over USD1 billion in assets under management. Financial terms of the transaction, which is expected to close in the second quarter of 2016, have not beed disclosed.
The acquisition represents a significant step toward Wealth Enhancement Group's long-term strategic plan of building a top national wealth management and financial planning brand. Wealth Enhancement Group is expanding in new markets through complementary partner firms' unique capabilities and scale.
Under the terms of the agreement, all of HHG's existing personnel will remain with the firm. HHG will continue to be led by George Stapleton, who has been named Regional President.
Based in the Greater Minneapolis area, Wealth Enhancement Group was founded in 1997 and has expanded to serve more than 10,000 households in over 40 states. The firm focuses on supporting the retail mass affluent and affluent investors by providing comprehensive investment and financial planning expertise and resources that are typically available only to large institutional investors and ultra-high net worth individuals. Wealth Enhancement Group successfully expanded into the Chicago market in 2013 and continues to accelerate developments in that area. With the acquisition of HHG, the firm will further expand its presence in the Northeast.
Jeff Dekko, Chief Executive Officer of Wealth Enhancement Group, says: "We are thrilled to partner with the exceptionally talented HHG team to extend our growth strategy to the northeastern United States. Shared values form the foundation of this partnership: Both Wealth Enhancement Group and HHG believe in the importance of team-based, comprehensive financial advice that's powered by proven, award-winning operational and growth programs. Wealth Enhancement Group is highly selective in choosing new partners, and HHG is a perfect fit for our long-term goals: a growth-oriented firm that puts values at the foreground and is keenly focused on financial planning."
Stapleton says: "We are very pleased to partner with Wealth Enhancement Group to drive additional benefits for both our current and future clients. Wealth Enhancement Group's scale, team planning approach, analytically driven investment strategy and powerful client service model will enable us to provide an even stronger value proposition to the families we serve, from advanced investment management and financial planning recommendations to back-office efficiencies. Our diligence process made it clear that we shared much in common with Wealth Enhancement Group, from our dedication to supporting both clients and employees to our focus on holistic planning."
Mark F Vassallo, Managing Partner of Lightyear, says: "With ongoing consolidation in the Registered Investment Advisors wealth management sector, we are pleased with the strong platform Wealth Enhancement Group continues to build upon. The partnership with HHG further expands the firm's presence and we look forward to working with the management team to further grow the business."
Dekko says: "This strategic acquisition, coupled with Wealth Enhancement Group's successful organic growth programs, marks another important step toward our ongoing goal of building a leading national wealth management and financial planning brand. Our strategy is to recruit likeminded firms who believe in using proven channels to maximise their ability to help clients, and to help them grow through our commitment to teamwork and comprehensive financial planning."