Seven months after opening for business, StillPoint Advisors, an Atlanta asset manager that targets wealthy investors, plans to announce today that it has brought on board a team of former Merrill Lynch managers as part of its growth plan.
StillPoint planned to announce the addition of a Little Rock, Ark., wealth management team. It was the company's second hiring of a complete team of wealth managers since it was opened at the end of March.
The Little Rock team consists of seven professionals, including four former executives from Merrill Lynch's Little Rock office - Christopher J. Collier, who will head the new office; Mike Arthur; Jim Alguire; and Matt McDaniel.
Tony Greene, StillPoint's managing director of marketing, said the hirings were similar to the firm's first such move, in April, when it added a Boca Raton, Fla., wealth management team headed by Michael A. Bober and Edward D. Ventrice, both formerly of Smith Barney. The team included seven experienced executives who were established in an attractive market.
Mr. Greene said StillPoint plans to grow in wealth centers in the Central and Eastern time zones.
"We are in discussions with groups outside of the Southeast, and we are also in discussions with teams that are in the Southeast," he said. "By having our headquarters in Atlanta it gives us a natural Southeast feel, but we are not limiting ourselves to this region."
Industry consolidation has affected the Southeast more drastically than other regions, he said. "There has been just a total decimation of regional brokerage businesses" in the Southeast.
StillPoint is also considering opportunities in Northern Virginia, New England, and the Midwest, Mr. Greene said, adding that the firm is not actively looking in New York and does not plan to enter the Mountain or Pacific time zones for at least three years.
"We plan to make another acquisition [of wealth management professionals] by early in the first quarter of next year," he said. "There are lot of moving parts in making deals, but our goal is to execute at least one per quarter."
StillPoint was opened in March on a business model of building relationships with individuals and families owning $5 million to $20 million of assets. It offers family-office services such as investment strategy development, asset allocation planning, tax and estate planning, and even concierge services that are typically reserved for the ultra-wealthy.
Last spring the firm's co-founders said in an interview that, though based in the Southeast, StillPoint would look to expand nationally by hiring niche teams. Charles W. Ogilvie, a co-founder and the chief operating officer, said at the time that the firm was opening with 12 employees and expected to expand to 50 by yearend. Of the 50, he said, 38 would be wealth advisers.
Mr. Greene said the firm will reach the overall goal by the end of the first quarter. StillPoint has 40 wealth advisers, he said, nine in Boca Raton, seven in Little Rock, and 24 in Atlanta.
Future hirings will look a lot like the first two deals StillPoint has made, he said.
"We want to grow by lifting out teams from larger organizations where they may not be able to drive growth the way they can with us," Mr. Greene said.
The typical team will have 10 to 15 years' experience and a book of business with $400 million to $800 million of assets, he said, and these teams will be able to gather assets more quickly at StillPoint because of its open architecture for products and services.
"There is no StillPoint house brand that is part of our day-to-day lives here, and that independence helps a lot in terms of helping clients manage assets," Mr. Greene said. "We also offer a lot of additional services that they didn't have before."
StillPoint plans to continue enhancing its staff and offices. In October, it appointed Jim Winters chief financial officer and in September Jeffrey S. Hall president of its family-office unit.
Mr. Greene said StillPoint plans to open offices today in One City Centre, a new office building in downtown Boca Raton. "We plan to continue to find new and innovative ways to grow," he said. "We want to find wealth centers where we can attract clients with teams that are well-established."
Analysts said this strategy has been successful for many asset managers and brokerage firms looking to expand nationally. Kevin Daniels, a Boston analyst, said StillPoint should be careful with the employees it adds.
"A lot of advisers are disenfranchised with the mega-brokerage firm that they are working for, but that doesn't necessarily mean they will be a good fit for a smaller firm," he said. "Smaller firms need to find people that fit with them culturally."
