Stratos Buys Up 11 Partner Firms With $4.8 Billion in Assets

Stratos Wealth Holdings, a Beachwood, Ohio-based collection of independent practices overseeing around $37 billion in client assets, has fully acquired 11 of its partner firms, according to an announcement. The practices, which are located in seven states, collectively oversee around $4.8 billion in assets. The move echoes similar steps taken by other RIA aggregators in recent years, including Carson Group and Focus Financial. While consolidation is typically seen as a strategy favored by third-party investors seeking an eventual payout, Stratos said these transactions were already underway when plans to sell a majority stake to RIA custodian and asset manager SEI were announced in July. The acquisitions are meant to address the “growing need among advisory practices for a more structured and scalable approach to long-term growth and transition planning,” according to the announcement. “Advisors are increasingly looking for strategic partners that can provide scale, resources, and flexibility without sacrificing leadership of their businesses,” Stratos CEO Jeff Concepcion said in a statement. “SEI’s strategic investment has helped accelerate our ability to support advisors while preserving the entrepreneurial culture that defines Stratos.” The practices that were acquired include: Kowal Financial Advisors; Jamie Turk Holdings; Veritas Boston; True North Wealth Partners; Spain & Smith Wealth Advisors; Windsor Wealth Management; Pistone Wealth Advisors; Marquis Wealth Group; PTM Financial; Stratos Private Wealth Westchester; and Stratos Private Wealth San Diego. Stratos was founded in 2008 as a destination for breakaway brokers but has expanded to include multiple affiliation options. Its largest is an RIA overseeing more than $28 billion that also operates as a large office of supervisory jurisdiction with independent broker-dealer LPL Financial. It has around 360 advisors total. Philadelphia-based SEI was founded in 1968 as an investment accounting technology company for banks. In addition to custodial and trust services, the company has an outsourced investment management platform and fund administration services. It has around $1.9 trillion in assets across its business lines.