Citizens Bank is buying Clarfeld Financial Advisors, a wealth group in Tarrytown, New York, with a total of $7.5 billion of assets under management and administration.
Citizens Bank has about $26.5 billion of total assets today, including $7.2 billion within its Private Wealth Management platform. Thus, the deal means Citizens Bank and Clarfeld could work with over $34 billion of total client assets, once the transaction closes — which is likely to be either late this year or early next year.
“The Clarfeld acquisition provides a unique opportunity to accelerate our strategy of building a highly competitive wealth management business that is well-positioned to offer a comprehensive range of wealth management and banking services to existing and future clients,” according to Citizens Bank Wealth Management President and CEO John Bahnken.
Terms of the deal were not disclosed.
The Clarfeld team has been in business for 37 years and includes chartered financial analysts, CPAs, attorneys and certified financial planners; it works with high-net-worth and ultra-high net worth clients, their families and related entities.
“I am excited about leading the buildout of our combined private wealth platform,” said Robert A. Clarfeld, founder and CEO of the firm that bears his name, in a statement. “With a broader range of products and services, we will be well-positioned to provide an exceptional value proposition to existing and future clients.”
After the deal is wrapped up, the Clarfeld CEO will become head of Citizen-Clarfeld’s high-net-worth and ultra-high net worth businesses. In addition, Clarfeld will keep its brand name and become a division of Citizens Bank Wealth Management, while Citizens Bank Private Wealth Management will be integrated into Clarfeld.
Citizens Bank Wealth Management has about 900 employees. It is part of Citizens Financial Group, which has about $158.6 billion in assets and is based in Providence, Rhode Island.
SP Financial Group, a fixed income team that works with RIAs, is now part of hybrid broker-dealer Arkadios Capital. Both organizations are based in Atlanta.
Formerly with Raymond James, the group works with about $3.5 billion of fixed income assets and is led by David N. Summers IV, CFA, and Joseph B. Patire. The team includes Shane Carpenter, CFA; Ross Nelson; Cameron Parkhurst; and Michael Belote.
“There is a lot of synergy between SP Financial and Arkadios Capital,” according to Summers. “With the independence and flexibility this platform offers, we’ll be able to continue to provide our clients with the high level of service and expertise they’ve come to expect, with the ability to expand our service offerings into areas our clients have been interested in, such as separate account management.”
“This is a huge pickup for Arkadios Capital,” said CEO and founder David Millican, in a statement. “David, Joe and the team give us an institutional bond desk with a proven, time-tested record. Most importantly, our businesses are similar in that we are both focused on client service and growing our businesses.”
The hybrid IBD, which now has about $1 billion in assets, works with affiliated independent wealth advisory firms and more than 30 advisors; it offers them securities, bonds and mutual funds, access to private equity deals, real estate investments, debt products and other alternative investments.