Hartford Business Journal

HARTFORDBUSINESS.COM | MAY 5, 2025 23 planning, firms' desire to join larger companies with better technology and increased backing from private equity investors, Berkshire said. "Since the surge of interest began in 2021, (private equity) firms and other financial sponsors have demonstrated their strong, increasing appetite for backing RIAs, providing them with capital to execute M&A deals and/or facilitating succes- sion planning for founders/senior management," Berkshire said. In 2024, private equity-backed buyers participated in nearly 80% of acquisitions involving regis- tered investment adviser sellers with over $100 million in assets under management. In 2020, that number was 50%, Berkshire said. Consolidation has also been fueled by aggressive growth strat- egies among consolidators, said Paul Brahim, CEO of the Financial Planning Association and managing director of Wealth Enhancement Group. Minnesota-based Wealth Enhancement Group is a private equity-backed wealth management consol- idator that acquires about 20 finan- cial advisory firms a year, having bought 22 last year and 16 in 2023, Brahim said. Since 2013, Wealth Enhancement has grown from 11 branches to more than 130 locations with 1,500 employees nationwide to become the Paul Brahim fifth-largest wealth management firm in the U.S. with $107 billion in assets under management. The company has been active in Connecticut — in 2021 it acquired Danbury-based Reby Advisors, which had $727 million in client assets at the time of the deal. In 2016, the firm acquired Darien- based HHG & Company LLC, which had over $1 billion in client assets. Brahim wouldn't say if his company plans to buy other firms in Connecticut. He did say consolidation has ramped up as financial planners in the 1970s-founded sector either want to retire or pass the burden of running a growing business to a larger firm. "They had to make a transition from practitioner to business owner, and that's not always the easiest transi- tion because being a financial planner and running a financial planning business are two different skill sets," he said. "Very often, rolling up or consolidating is a way for an owner or an owner group to be able to partner with a larger entity to create a larger and better practice." Smaller wealth management firms find merging with a larger player easier and less risky than executing a succession plan, Brahim said. "Transitioning that value internally can be expensive for that second or third generation," he said. And consolidators often attract private equity investment that funds further acquisitions, he said. "We're derisking," Brahim said. TOTAL PROJECT SIZE: 25,000 SF Building For Your Success ABLE COIL BOLTON, CT For over 55 years, metal buildings have been a staple of PDS. For this project, we were tasked by Able Coil to build a new state of the art pre-engineered metal office building and renovate their existing 20,000 square foot building into a new manufacturing facility in Bolton CT. Complete with multiple new offices and several specialty rooms, the exterior finish is a multifaceted design complete with Nichiha Vintage Cement siding and ACM paneling, full length store front windows and stone veneer. Structural upgrades to the existing building were necessary to bring it up to code and to support the new solar panel system. With in-house engineering, PDS can design the right building to fit your budget and timeline. SPOTLIGHT ON: PRE-ENGINEERED METAL BUILDINGS 107 Old Windsor Road, Bloomfield, CT 06002 | 860.242.8586 | pdsec.com THINK • PLAN • BUILD CONSTRUCTING EXCELLENCE Scan the QR code, visit www.NutmegStateFCU.org/EMCP or call 860-513-5000 to learn more! for a life's moments YOU BELONG WITH US NMLS #637816 Federally insured by NCUA Helping your employees thrive, so your business can too. STRONGER BENEFITS. STRONGER WORKFORCE. Finding great employees is tough. Keeping them is even tougher. Our Employee & Member Care Program helps businesses provide exclusive financial benefits to support employee retention and well-being. 4 On-site banking & financial wellness events to support employees 4 Preferred-rate banking products tailored for your workforce 4 Financial education & coaching to reduce financial stress 4 Personalized services that connect employees with the right financial tools 4 A no-cost way to enhance your employee benefits package When employees feel financially secure, they stay longer, work better, and grow with your business. Let's build a stronger workforce together. Contact us for more information about our Employee & Member Care Program Today!

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