TEG combines tactical investment management with financial planning, Kitces says.

The $1.6 billion Pinnacle Advisory Group has acquired the $200 million Enrichment Group, a Miami-based RIA.

Pinnacle is a private wealth management firm headquartered in Columbia, Maryland.

According to Michael Kitces, Pinnacle’s director of financial planning research and a partner with the firm, the acquisition combines two very like-minded business cultures.

“We’ve always been aware of each other and that we have a lot of similarities,” Kitces said in a phone call with ThinkAdvisor, adding, “Both of us are very deep on financial planning for our clients. There was just a natural affinity of the cultures of the two firms, which made it very easy to come together.”

The Enrichment Group’s similar philosophy on financial planning along with its tactical investment management process made the acquisition process “much, much easier,” Kitces said.

“There are a lot of RIAs out there, but there are only a limited number that really combine together the investment management process and the financial planning offering to clients,” Kitces said in a phone call. “So it’s always exciting to us to find a firm that aligns to our own views about … really doing financial planning for clients. It’s a great fit and opportunity.”

Both Kathleen Day, CEO and founder of The Enrichment Group, and her husband, Pat Day, vice president of The Enrichment Group, expressed similar sentiments.

“[W]e had to find a merger partner that we knew would share our approach and continue our work,” Pat Day said in a statement. “We were looking for an ethics-driven firm with high client engagement, a focus on financial planning, and strong investment management. In Pinnacle we found that firm.”

The Enrichment Group, which was founded in 1987 by Kathleen Day, specializes in helping clients who are going through life transitions.

“Pinnacle offers enhancements to the things we do in a way that makes the combination better than either firm on its own,” Kathleen Day said in a statement. “Everyone wins.”

The Enrichment Group’s employees will join the team at Pinnacle, with the Days coming on board as directors.

Pinnacle now has 50 employees in three offices (Columbia, Maryland; Naples, Florida; and Miami, Florida) and manages $1.8 billion in assets for more than 1,100 clients.

“The Enrichment team gives us some capacity for growth,” Kitces said. “Bringing in new team members gives us the ability to serve more clients as well as operational support.”

The TEG acquisition also marks a significant entry into the Miami market for Pinnacle.

“The Enrichment Group … gives us a physical presence in Miami, which is certainly a strong market in and of itself,” Kitces said. “Like many RIAs of our size, we’re very excited to get into a new geographic market place.”

 

—Related on ThinkAdvisor: