Modern Wealth Acquires Two California-Based RIAs

Modern Wealth Management, a private equity-backed registered investment advisory launched in April 2023 by former United Capital executives, has booked its 14th and 15th acquisitions since its founding with two California-based firms that combined manage over $1 billion in client assets.

Wade Financial Advisory, based in the Silicon Valley area of Campbell, Calif., is a 13-person fee-only RIA with more than $700 million in client assets and over 250 households. The other firm, Planned Asset Management, is a seven-person team based in Calabasas, Calif., outside of San Francisco, managing over $350 million in client assets for more than 200 households. Both firms will take on the Modern Wealth brand name.

“Our business plan was to be a nationwide firm,” said Jason Gordo, co-founder and president at Modern Wealth. “We still have a lot of work to do in that pursuit, but California is absolutely a key state for us to be in.”

Gordo and co-founders Mike Capelle and Gary Roth all live in California. They formed Modern Wealth after spending time at Goldman Sachs after it acquired United Capital in 2019, only to sell to Creative Planning in 2023. Now, Modern Wealth has locations on both coasts and in the middle of the country, though Gordo said it’s still looking to expand into key states and metro areas such as Florida, Texas, Phoenix and Seattle.

“First, you have to find really great people, then you find really great people with great businesses, then you have to find really great people with great businesses who want to join,” he said. “We struck gold in California with these two acquisitions.”

Wade Financial will bring a tax planning and preparation business that will be integrated into Modern Wealth’s current tax platform.

Rodney Wade, the firm’s founder, will join Modern Wealth as a managing director. Chief Investment Officer Neelesh Champaneri will join Modern Wealth’s investment management team and work with its director of investments, Stephen Tuckwood.

Planned Asset Management was founded by Morrie Reiff about 40 years ago, with a succession plan for Reiff’s daughter, Jamie Reiff, to lead the group.

Gladstone Group’s Derek Bruton advised Planned Asset Management on the deal.

Gordo pointed to Jamie Reiff’s positioning as a next-generation leader as one of the reasons Modern Wealth was attracted to the firm.

“She is looking to take this business to the next level and knew she needed a partner to do that,” he said.

That trait of having “exceptional next-generation talent” went across both acquisitions for Modern Wealth.

“Wade is a very professionally run organization that Rod Wade identified that they needed to bring in a real management team and structure,” Gordo said. “He’s really focused on bringing the next generation of advisors to the business to help with growth and help with client service and help with bringing professional operations to the business.”

When it comes to what the firms will gain from Modern Wealth, Gordo noted its Organic Growth Hub, which will help them tap into lead generation strategies, distribution, client onboarding and marketing resources.

“Everybody is seeking organic growth, but very few have figured out how to drive it,” he said, noting that Modern Wealth’s first investment was in its organic growth hub. “That’s one of the things that attracts firms to our business. We’re not relying on market conditions, wallet share expansion or getting a referral from a CPA or attorney. We are very intentional about driving organic growth to our partner offices.”

The hub, which operates out of Kansas City, has hired recent college graduates to teach them the industry while having them deliver leads and produce a radio program and podcast to reach potential clients.

After the acquisitions close, Modern Wealth expects its assets to surpass $7 billion.

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