Apella Wealth Expands into Midwest with $574M Iron Horse Wealth Management Acquisition
Apella Wealth, a rapidly growing financial advisory firm, has considerably expanded its geographic footprint with the acquisition of Iron Horse Wealth Management, a registered investment advisor (RIA) based in Johnston, Iowa. The deal, finalized on June 20, brings over $574 million in assets under management (AUM) to Apella, marking its first venture into the Midwest region.
Strategic Expansion for Apella Wealth
This acquisition represents a key milestone in Apella Wealth’s enterprising growth strategy. “This partnership represents a significant milestone in Apella’s geographic expansion as we establish our first Midwest-based team,” stated a company release. Founded in 2014, Apella Wealth has quickly become a prominent player in the wealth management space, now overseeing approximately $6.08 billion in client assets as of June 20.
Did you know?-Apella Wealth’s name is derived from the ancient Greek term for a citizen assembly, reflecting the firm’s commitment to collaborative financial planning.
iron Horse Wealth Management: A Strong Regional Presence
Iron Horse Wealth management, established in 2012, brings a strong regional presence and a dedicated team to Apella. Led by founder and president Dennis Markway, the firm provides comprehensive financial services including financial and retirement planning, college planning, and investment management to a diverse clientele encompassing families, professionals, retirees, and business owners. The Iron Horse team also includes senior financial advisors Greg Hayes and Danny Beyer, alongside associate advisors Mark Broderick and Penny Schmidt. According to the firm’s Form ADV filing, updated in June, Iron Horse Wealth Management manages $532 million in client assets across 1,431 accounts.
Reader question:-how do you think the integration of Iron Horse Wealth Management into Apella Wealth will affect clients of both firms?
Aggressive Acquisition Strategy Fuels growth
The acquisition of Iron Horse Wealth Management is Apella’s 22nd transaction overall and the 11th as partnering with Wealth Partners Capital Group in September 2021. Wealth Partners Capital Group provided a significant investment in Apella, fueling its aggressive acquisition strategy. Earlier this year, Apella acquired Young Wealth Management in Davis, California, in January (with $144 million in AUM), and Marrella Private Wealth in Wyomissing, Pennsylvania, in March (with $518 million in AUM).
This continued expansion underscores apella Wealth’s commitment to growth and its ability to successfully integrate acquired firms into its expanding network. The firm’s strategic acquisitions are positioning it for continued success in the competitive wealth management landscape.
Apella Wealth’s Acquisition strategy: A Closer look
Apella Wealth’s acquisition of Iron Horse Wealth Management is a clear exhibition of its dynamic growth trajectory.The firm’s strategy, fueled by investments and a commitment to an evidence-based approach, emphasizes strategic expansion and client-centric service [[1]]. With Iron Horse’s integration, Apella broadens its geographical reach while bolstering its service offerings to existing and prospective clients.
The firm’s emphasis on thoughtful acquisitions, like Iron Horse, is intentional. This growth model aims to enhance its existing capabilities, making extensive financial services accessible to a wider audience. Apella Wealth’s core tenets, established since its founding in 2014, highlight the importance of independent, unbiased financial advice tailored to each client’s unique needs [[2]].
Apella’s acquisition model offers a two-pronged benefit. Frist, it provides the acquired firms with the resources and infrastructure to scale their businesses by leveraging Apella’s established platform. Secondly, it allows Apella to broaden its investment in advisors throughout the country, ensuring that advisors on the team are like-minded and motivated by the same core values. The firm’s acquisitions have not only expanded their assets under management but have also allowed them to refine their focus on financial planning through the use of technology-focused solutions.
Expert Insight:-The integration of Iron Horse could mean enhanced services and resources for existing clients. These may include integrated technology platforms, research tools, and a broader network of advisors.
Key Elements of the Acquisition Strategy
Several factors distinguish Apella Wealth’s approach to acquisitions:
- Strategic geographic Targeting: apella prioritizes expanding into new regions, such as the Midwest with the Iron Horse acquisition, to provide services across the nation.
- focus on Cultural Fit: Apella carefully selects firms that align with its evidence-based investing and client-focused beliefs [[3]]. This ensures a seamless integration of teams.
- Financial Planning Emphasis: Apella underscores financial planning, retirement strategy, education planning, and insurance solutions with a holistic outlook.
- Technology Integration: They leverage cutting-edge tech infrastructure to provide advisors with useful insights, automate processes, and improve the overall client experience.
What does Apella Wealth look for and why? Apella Wealth specifically looks for firms that share its commitment to financial planning.The firm understands that the best outcomes occur when client and advisor share a mutual understanding.They also seek firms that align with their commitment to technology integration,which increases team efficiency and provides transparency.
How does this differ from other firms? While many wealth management firms emphasize mergers and acquisitions, notably larger public companies, Apella wealth offers a specialized, hands-on approach that has fueled them throughout their rapid growth.As an RIA, Apella can customize its strategy and approach in a way that larger public companies struggle to duplicate.
Important note: Clients shoudl proactively stay informed about the acquisition process and its impact on their accounts. They can connect directly with their advisors to ask questions and to understand the transition plan.
Client Impact and Future Outlook
The Iron Horse acquisition is set to benefit clients in multiple ways.Clients of Iron Horse Wealth Management will gain access to Apella Wealth’s extensive platform of resources, including advanced financial planning tools, investment options, additional expertise, and a broader network of advisors. Apella Wealth’s focus on personalized, evidence-based financial planning will create a valuable client experience.
Clients of Iron Horse will work with the same advisors they’ve come to know and trust, further benefitting from the deeper resources the team at Apella Wealth provides. Apella’s integration of Iron Horse will provide clients with a wider array of expert services.
The integration of Iron Horse Wealth Management into Apella Wealth is a clear example of how strategic acquisitions can accelerate growth and improve client service. Continued acquisitions, such as Iron Horse, will help Apella Wealth achieve its strategic goals.
Frequently Asked Questions
How will the acquisition affect client relationships?
Clients should experience minimal disruption. Existing relationships with advisors are expected to be maintained, with added benefits from Apella’s expanded resources and expertise.
Will there be changes in investment strategies?
Apella Wealth maintains that the integration will include a careful alignment of investment and financial planning strategies, that may bring unique advantages.
Are there any plans for further acquisitions?
Yes, Apella Wealth has said they plan on continuing their acquisitions strategy, focused on firms that align with their values and goals. This strategy intends to enhance their national presence and expertise.
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