Mercer is hiring ex-Schwabbies like crazy after five-year AUM jumps from $9B to $56B -- with a big bump in the past 12 months -- using 100 IARs who only sell the RIA as chum for M&A

Mercer Global Advisors leapt from $9 billion to $56 billion in five years – with $17 billion coming in the past 12 months, a 50% jump from $39 billion – and now it's madly hiring to serve a growing M&A portfolio.

“Every one of the 85 firms that have joined us through M&A is putting their life’s work in our hands,” says Mercer  CEO David Welling in a release.

It's hired 260 professionals in the past year alone, many from Schwab and one with a McKinsey pedigree.

Gün Keresteci has joined th firm as his chief financial officer and strategic business partner to the CEO, president, executive team and the board. 

Keresteci, 54, was global head of finance at McKinsey & Co., where he spent the last 11 years. He also spent three years at Lightyear Capital. See: Why Lightyear's purchase of AIG Advisor Group isn't a Cetera-type fixer-upper case and how Donald Marron will respond accordingly

“There is definitely a fight for talent in the independent RIA space, and we are winning,” said Martine Lellis, Chief Talent Officer for Mercer Advisors. Lellis is a former chief operating officer atr Sullivan Bruyette, Speros and Blayney.

Collaborative leadership

The Keresteci hire was aspirational.

“It's not only who we are but who we want to be,” Welling, 55, says. Welling himself is a product of elite consulting ranks, having worked at Bain & Co., from 1995 to 1997.

Daniel Gourvitch, president of Mercer Advisors, no doubt gave Keresteci reason to believe in Mercer.

“I had the privilege of seeing first-hand Gün’s thoughtful and collaborative finance leadership during the years we worked together at McKinsey, and I couldn’t be more excited to call him once again my partner.”

Keresteci, an MIT graduate, is expected to bring a sort of omniscience to bringing together all the scattered pieces and processes that go into a national firm managing tens of thousands accounts to the highest client-first standard.

“Hiring a person of Gün’s caliber, a leader with vast multi-disciplinary experience, reinforces our commitment to building the preeminent fiduciary financial advisory firm,” Welling says. 

Funneling leads

The inorganic M&A growth blitz can be explained in large part by Mercer's organic promise, grounded in the 100-person, outbound-call sales and referral management team. 

In other words, advisors joining Mercer know that leads will be funneled in their direction.

Much of the lead-flow comes from Schwab and Fidelity referral programs. The 100 sales-oriented advisors feed leads to 300 client-facing advisors. 

Mercer also has a staff of 400 people who make sure that estate and tax issues are managed properly.  Mercer fields a team of 60 financial planners.

Welling's people strategy also depends, in part, on attracting people from his brokerage alma mater, Schwab Advisor Services.

Team building

Four of five recent Mercer hires – Stacey Orff, Andy Burgess, Jay Robinson and Greg Mayes – are Schwab Advisor Services veterans. 

Welling made his name at Schwab before ascending at Black Diamond. See: Black Diamond blows the lid off asset growth in Dave Welling's first year in charge

Despite the shift to organic growth, Mercer's inorganic growth machine is also getting bigger.

Robinson joins Mercer Advisors with over 25 years of RIA experience, most recently as a managing director at Schwab Advisor Services.

Mayes most recently served at LPL Financial but also spent 13 years at TD Ameritrade Institutional and 12 years at Schwab Advisor Services.

Burgess advised breakaway advisors on the optimal positioning for their new firms. Prior to Fidelity, Burgess held a similar role at Schwab Advisor Services.

Orff joined Mercer from RIA-focused M&A firm DeVoe & Co., after stints at Schwab and SS&C Advent.

Jeff Dadamo – a former ATP touring tennis player – also joins from Dimensional Fund Advisors as senior director, M&A investment integration.

Michael Henry, Mercer Advisors' most recent CFO, has shifted into a dedicated role to support the M&A team.

Mercer also just launched a new technology platform, called Aspen. It's designed to make the best of existing applications including: Orion, eMoney, Salentica. See: Black Diamond's gutsy CRM play is a self-branded product built on a Salesforce chassis that undercuts the giant on price and simplicity and converts to Salentica with flip of a switch