News

Carson Wealth Lures in Largest Partner So Far

Posted on July 24, 2018

Carson Wealth has taken a minority stake in a $1 billion wealth management firm — the largest firm to date to accept Carson’s ownership model, according to WealthManagement.com.

The Texas-based Pinnacle Financial Group was founded by Michael David, also the firm’s CEO, who will retain 75% ownership of the firm, the web publication writes.

But the company will no longer run as a stand-alone brand, according to a statement from the companies cited by WealthManagement.com. On Friday, Pinnacle’s website was already redirecting to Carson Wealth, the publication writes.

“It’s a transformational leap for both our team and our brand; I’m having the time of my life,” David says in a statement cited by WealthManagement.com. “Overnight, we’ve elevated our national presence as one of the most recognized financial services brands in the country, while keeping the interests of our clients at the forefront.”

David’s firm currently has 28 employees working out of five branches in Texas and Kansas, according to WealthManagement.com. Pinnacle was at one time one of the top three partnering firms in the Carson Group Partner model, which was previously known as Carson Institutional Alliance, a spokesperson for Carson tells the web publication.

Under the current model, Carson Group takes a small percentage of the profits at each of the RIAs in which it has a stake, WealthManagement.com writes.

If Carson and one of its partner firms opt to part ways as owners, advisors get the right of first refusal in buying back the business, according to the web publication.