Wealthcare, the West Chester, Pennsylvania-based hybrid registered investment advisory firm, has added more than $1.8 billion in assets under management in the year since closing its sale to Sammons Financial Group, an insurance holding company expanding into wealth management. The firm brought on 26 advisors across various affiliation models during the period, according to CEO and President Matt Regan.
The growth includes two notable acquisitions: Crowley Wealth Management, a registered investment advisor with $417 million in assets under management, which closed in December, and the practice of Doug Koopman in Dubuque, Iowa. Wealthcare has also secured purchase agreements or letters of intent for firms representing approximately $900 million in assets in 2026, Regan said.
Regan attributes much of the momentum to the ability to pursue larger practices with Sammons' financial support. The permanent capital structure has become a key differentiator in both recruiting independent advisors on a 1099 basis and in acquisition conversations, he said.
"The financial support and the fact that that financial support represents permanent capital is absolute game changer for us, both in our 1099 recruiting and in our efforts to buy firms because when you're telling an advisor that this is the last home they'll have, that this capital is permanent and nothing's going to happen, there's going to be no private equity flip when the shot clock goes off is a real differentiator in the market and we think that that's going to be critical to our success moving forward," Regan said.
As part of the transaction, Wealthcare's professionals became shareholders of Sammons through an Employee Stock Ownership Plan. The structure stands in contrast to private equity-backed aggregators that typically operate under defined exit timelines.
Wealthcare has begun coordinating merger and acquisition activity with NorthRock Partners, another wealth management firm backed by Sammons. The two firms operate distinct models: NorthRock runs a wholly-integrated W2 approach in which advisors adopt the NorthRock brand and focuses primarily on high-net-worth and ultra-high-net-worth clients. Wealthcare maintains a more open architecture structure that allows firms to retain their own branding. The firms now refer prospects to each other based on fit, Regan said.
The firm is also working with Beacon Capital Management, a registered investment advisor and turnkey asset management platform within Sammons Wealth Management, to integrate some of Beacon's investment strategies into the Wealthcare platform. Beacon operates a series of tactical, risk-on/risk-off strategies through exchange-traded funds, a mutual fund and model portfolios.
"Our wealth management approach is much more holistic, kind of a universal approach to asset allocation across various asset classes and diversification, but to the extent that we can add tactical or risk-managed products to the mix, we're always open to that," Regan said.
Michael Mock, president of Sammons Wealth Management Group, identified an opportunity for Wealthcare to serve Midland National agents looking to expand into wealth management. Midland National is an insurance company owned by Sammons. Wealthcare is developing a program to allow Midland agents to access the platform, with a rollout expected in the fourth quarter of this year or early next year, Regan said.
"One of the things to note is that this is not a distribution play to sell more Midland, North American life annuities through the wealth management space," Regan said. "Sammons' strategic decision to enter wealth management had nothing to do with product distribution and everything to do with creating a differentiated revenue stream than the annuity revenue stream."