Merit Financial Advisors is expanding its footprint in California with the acquisition of the Bridgeway Group, an investment advisory team that managed about $900 million in client assets with Commonwealth Financial Network. Merit announced the deal, which closed July 31, on Wednesday.

Bridgeway has offices in the Southern California towns of Pasadena and Covina. The nine-person practice, led by advisors Matt Dupon, Sean Montgomery and Scott Miller, offers financial planning services with a focus on retirement planning.

A spokeswoman for Commonwealth didn't immediately respond to a request for comment on the departure. Merit says that Bridgeway is the sixth Commonwealth team it has brought on since LPL acquired the independent broker-dealer.

Bridgeway had been affiliated with Commonwealth for 13 years and has seen annual growth of around 22% over the past five years, according to Merit. Dupon says that his team had been looking for a new partner to support its continued expansion while allowing it to operate largely independently.

"We knew we were going to make a transition, so it made sense to step back and ask where we wanted to go from here," he says. "We have built a strong business and want to keep growing, but continuing at this pace requires greater infrastructure and support."

Merit will provide marketing, technology, and operational support, among other services that will enable the Bridgeway team to spend more time with clients and continue growing the business.

The acquisition is Merit's ninth of the year and 61st overall. A company representative says Merit has a robust acquisition pipeline with "several" firms having signed letters of intent, including more Commonwealth teams.

David Wahlen, a Merit executive vice president, says that Bridgeway has many of the traits his firm looks for in an acquisition target, including a multigenerational team and a focus on financial planning.

"Matt, Sean, and Scott are entrepreneurial partners who want to invest in the future of their business and in Merit," he says.

Dupon is a 28-year industry veteran who first registered as a broker with Cetera Advisor Networks in 1998 and as an investment advisor with that firm in 1999. Montgomery also got his start with Cetera, registering as a broker in 2001 and an investment advisor the following year. Miller first registered as an investment advisor with RNC Genter Capital Management in 2017 and quickly moved to Commonwealth.

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