Stratos Wealth rolls up New York investment adviser Truvium

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Stratos Wealth Partners has announced the roll up of Truvium Wealth Management, a division of New York’s Truvium Financial Group, and its leader Scott Gegerson, who brings $120 million in brokerage and advisory assets along with him.

Stratos Wealth Partners is a division of Stratos Wealth Network, the Beachwood-headquartered dba of Stratos Wealth Holdings. The company has advisers in offices for its various operations in 26 states across the country, and this deal adds a new branch location in Garden City, N.Y., to its footprint.

The companies say the acquisition comes as part of a succession plan by Truvium founder and CEO Nick Palumbo, who will “remain a strategic partner to Truvium Wealth Management.” Financial terms of the deal were not disclosed.

“It is great to be part of helping Scott fulfill his vision and goal of running his own wealth management firm,” said Stratos managing partner Michael O’Brien in a statement. “Our fit with each other became absolutely clear based on the care he placed in his decision and the focus he had through the transition.”

Entities comprising the Stratos Wealth Network oversee about $19 billion in combined brokerage and advisory assets. Some 87% of that is managed via Stratos Wealth Partners. Other divisions in the Stratos network include fellow registered investment advisers (RIAs) Stratos Wealth Advisors and Fundamentum.

Helping fuel Stratos’ acquisition strategy is Emigrant Partners of New York, which struck a deal with Stratos in April 2020 for a minority stake in the company. That deal marks the first time Stratos founder and CEO Jeffrey Concepcion — who says he has otherwise reserved 35% of earnings every year since founding the first piece of Stratos in 2008 to either save or reinvest in the company — has ever taken on debt for the previously underleveraged Stratos network.

Last spring, Concepcion indicated his firm is looking to reach $20 billion in total assets under advisement by the end of 2020 as it rolls up other RIAs.

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