Carson Group says it is taking an equity stake in Amarillo, Texas-based Pinnacle Financial Group, which is becoming a Carson affiliate with some $1.1 billion in client assets and changing its brand.
Pinnacle is led by founder and CEO Michael David. David will keep his majority stake in the firm, which employs 28 stakeholders in five offices in Texas and Kansas.
“Michael and his team have known Carson Wealth for decades,” Ron Carson, CEO and founder of Omaha-based Carson Group, said in a statement. “We couldn’t be more excited to have such a fast-growing firm represent a new chapter of the Carson Wealth brand.”
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Carson Group announced the new equity-option arrangement on May 30, explaining that it allows a practice to sell a 25% stake and then use the Carson Wealth name. Through a pilot program, three firms with a total of $1.3 billion in assets signed on to the model earlier this year.
The Carson Group includes Carson Wealth, Carson Group Coaching and Carson Group Partners. Carson Wealth trades securities via Cetera Advisor Networks, which is being sold (along with its sister broker-dealers) to Genstar Capital, and it offers investment advisory services through its own RIA. Pinnacle was working with Cetera before agreeing to let Carson Group acquire an equity stake, so it will not be changing broker-dealers.
“It’s a transformational leap for both our team and our brand; I’m having the time of my life,” David said in a statement. “Overnight, we’ve elevated our national presence as one of the most recognized financial services brands in the country, while keeping the interests of our clients at the forefront.”