Steward Partners Adds $950M Georgia-Based RIA Run By Former Pilot
Michael Stark, a former pilot and financial advisor to Delta employees, has agreed to join $50 billion Steward Partners.
Steward Partners, a Stamford, Conn.-based registered investment advisor with more than 175 advisory teams and about $50 billion in assets, has added a Marietta, Ga.-based RIA overseeing nearly $1 billion in client assets.
American Financial Advisors, founded by Michael Stark in 1991, is moving to Steward’s 1099 RIA platform that has grown to $50 billion in client assets under CEO Jim Gold.
Scott Danner, chief growth officer and head of the legacy division for Steward, said the acquisitive RIA's interest in the firm was partly due to Stark’s story and being someone whose business “is part of their life, not their whole life.”
Stark served in the Marine Corps from 1976 to 1997, with part of his role flying A-4 and FA-18 aircraft, according to Steward and his LinkedIn page. He went on to become a pilot for Delta, where he began helping colleagues with their finances, leading him to found his own RIA.
“We had dinner with [Michael] and his team, and we know that these are the kinds of people that we want to do business with,” Danner said. “Of course, the business matches what we’re looking for. They’re a billion dollars, they’re service first and put their clients first .... But it’s really about the story. And I still lean on the story every time because I’m in a relationship over a transaction. Everything we’re doing is relationships over transactions.”
Stark built the firm over time, expanding beyond Delta employees to manage $950 million in client assets, according to the firm’s most recent Form ADV. That knowledge and base of Delta employees, however, was also a draw for Steward, as was the Atlanta-area location in what is a growing market, said Valerie Rivera, chief operating officer, strategic growth.
“I think it’s a great market,” Rivera said. “We’ve seen lots of opportunities in and around the surrounding suburban area of Atlanta.”
Rivera said the deal market continues to be strong for Steward, with nine more in the pipeline and firm sizes larger than in recent years.
“We haven’t seen anything slowing down, but more so kicking up, and we’re starting to see larger and larger teams, too,” she said.
In June, Steward landed its largest wirehouse breakaway team to date by bringing over former UBS advisors who had been managing $2.4 billion in client assets with offices in Florida and New York.
In its most recent RIA deals report, consultancy and investment bank Echelon Partners said the industry has seen its most active second quarter to date, with private equity-backed firms dominating the market at 75.8% of transactions, an all-time high.
Steward is an employee-owned firm with minority investments from Ares Management, The Cynosure Group and the Pritzker Organization.
Danner noted that, while there are large paydays being thrown around the RIA market, or what he called “drunken sailor” offers, many are not a good fit for firms and don’t pan out despite the high offers.
“I look for the right fits, and I think we should always be in the right ballpark,” he said. “The market will continue to pay quality for quality. I think that’s the key.”