• Kevin Elvington

Stratos takes stake in $600m Florida RIA

Updated: Dec 3, 2021

https://citywireusa.com/registered-investment-advisor/news/stratos-takes-stake-in-600m-florida-ria/a1522257

RIA giant Stratos Wealth Holdings has bought into a $600m Florida RIA.

The $19bn Emigrant Partners-backed firm said Tuesday that it has taken a

minority stake in Summit Wealth Partners, which is based in Orlando. Stratos is

using its RIA acquisition vehicle, Stratos Wealth Enterprises, to consummate the

transaction.


Summit also has offices in Naples, Fla. and Grand Rapids, Mich.

Lou Camacho (pictured), the president of Stratos Wealth Holdings, did not

disclose a purchase price but said that the deal was an all-cash transaction and

that Stratos buys stakes of no less than 30% in its RIA minority investments.

Stratos said that its stake in Summit Wealth Partners is non-voting.


‘They were in a very attractive market for us, no question about that,’ Camacho

said of Summit Wealth Partners. ‘They were looking for a minority partner

where they’d be able to maintain their brand, their operating model and their

asset management structure. As the partnership matures, they may or may not

2/2 tap into more of our infrastructure — and if they do, fantastic. If they don’t,

that’s okay, too.’


Summit Wealth Partners is led by co-chief executives Jason Print and Chad

Warrick. Print, Warrick and Summit Wealth Partners general counsel William

Kovacs all have equity stakes in the RIA, though their exact percentages were

not disclosed.


In all, Summit Wealth Partners employs 18 people, six of whom are financial

advisors.


‘Numerous RIAs and aggregators have knocked on our door to propose joining

forces. We chose to partner with Stratos because the team there structured a

deal that gives Chad and I the freedom and flexibility to run our business in the

way we choose while leveraging Stratos’ significant scale, resources, and

expertise,’ Print said in a statement. ‘Chad and I still have decades to go before

we retire, and we firmly believe that the sky’s the limit in terms of our potential

thanks in large part to this strategic partnership.’


Headquartered in Beachwood, Ohio, Stratos maintains multiple business lines

under its holding company umbrella. Its most prominent business line is LPL

affiliate Stratos Wealth Partners, which oversees roughly $16.6bn in advisory

and brokerage assets. It also has a $1.9bn traditional RIA called Stratos Wealth

Advisors, as well as an in-house asset manager known as Fundamentum.


Emigrant Partners purchased a minority stake in Stratos in the spring of 2020.

For Stratos, the deal with Summit Wealth Partners is its first minority

transaction since May of 2020, when it took a minority stake in $650m Brown

Wealth Management, which was already affiliated with the company through

Stratos Wealth Partners.


Camacho indicated that more deals are around the bend. ‘We’re probably

working on four transactions,’ he said.


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