This press release was originally posted on www.crainscleveland.com by Jeremy Nobile.
OneSeven, a Beachwood-based registered investment adviser (RIA), has combined its business with fellow Beachwood firm MGO Investment Advisors in a move that not only grows the company’s adviser platform but that seems to signal other strategic combinations in store for the future.
Concurrent with the merger, OneSeven said it has accepted a minority equity investment from Merchant Investment Capital, a New York firm that consults with and provides growth capital to wealth management companies.
Merchant acquired an approximately 20% stake in OneSeven with the investment, according to the firm. Specific financial details were not disclosed.
MGO and OneSeven had been working under separate ownership but out of the same office.
While OneSeven — which reports to the Securities and Exchange Commission as MGO OneSeven — is the surviving entity in the transaction, OneSeven co-founder and president Todd Resnick said there was no money exchanged and that the combination is “very much” a “merger of equals.”
MGO, founded in 1939, has been led by president and CEO Ron Gross, who is also described as a co-founder of OneSeven. It was his nephew, Rick, who introduced him to Resnick, which eventually led to the creation of OneSeven in 2016.
“The three of us created the idea of what would become OneSeven but decided in the beginning to keep them as separate entities,” Resnick explained. “Ron and Rick committed time to both organizations but as time went on, we knew that putting the company together would help elevate a combined company.”
MGO reported approximately $1 billion in regulatory assets under management (AUM) and eight employees as of March 25, according to its last public filing. OneSeven reported approximately $2.3 billion in regulatory AUM and 43 employees as of July 25, according to its latest company filing.
In its announcement, OneSeven said it manages a combined $2.8 billion in assets among a 36-adviser team in a footprint spanning 11 states.
Merchant has been working in a consulting capacity with OneSeven for some time and advised OneSeven in this merger.
“This partnership is a perfect illustration of the strength and strategic expertise that the Merchant team brings to its partnerships — in helping MGO and OneSeven plan carefully for their merger and integration, we can add value that far exceeds our durable capital solutions,” said Merchant co-founder and managing partner David Mrazik in a statement.
The investment by Merchant will support OneSeven in further building out its adviser platform and help fund future acquisitions./p>
The last acquisition by OneSeven involved the roll up of College Funding Evolution in spring 2021. That business has been described as “turnkey college planning marketing system.” That deal was made in support of OneSeven’s 7-Tool Advisor platform.
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