Nebraska RIA chooses shared-ownership succession

Prairie Wealth Advisors completed a merger in May with Tim McEwan’s team, bringing $400 million in assets under management and $200 million in 401(k) plan assets and creating a $1.3 billion registered investment adviser based in Lincoln and Omaha, Nebraska. Craig Hundt, the firm’s founder and chief executive, retains a 53% stake; McEwan holds 47% and serves as president.

The two firms began discussions about a potential partnership roughly nine years ago and accelerated talks in the last four years. The partners pursued a combined ownership structure as an alternative to selling to an outside buyer or naming a single internal successor. Hundt has worked in the industry for 39 years; McEwan has 23 years of experience.

The merger has allowed Prairie to expand staff and services. The firm added three employees, including a chief investment officer and a director of compliance and governance, and increased its capacity to manage 401(k) plans and day-to-day operations.

McEwan described the workload as intense but rewarding, calling the arrangement a ‘true joy’ that provides freedom and flexibility to serve clients while avoiding an immediate transfer of control. Hundt characterized the timing of any final retirement as ‘fluid’ and said the deal has renewed his interest in business development.

Advisors working on succession deals recommend clear division of roles and decision-making authority. Mitchell Fenimore, a senior vice president and market leader, noted potential operational clashes such as different fee models or licensing arrangements. He pointed to specific scenarios like one advisor operating fee-only while another accepts commissions, differences in insurance licensing, or varying use of mutual funds that pay revenue sharing as items that must be reconciled.

The transaction took multiple legal and structural iterations. The partners considered involving Hundt’s son, shifted M&A advisors during negotiations, and negotiated client retention and attrition terms and the legal form of the business. Both principals described the process as time-consuming and requiring due diligence, and both said the outcome benefits clients and staff.

The deal comes amid an industrywide wave of retirements. Research from Cerulli Associates estimates that 35% of advisors — about 102,230 professionals managing $14.5 trillion in client assets — will retire within the next decade. Among those planning to retire, Cerulli reports roughly 27% are unsure of their succession plan, 21% expect to hand the business to another adviser in the practice, 20% plan to transfer it to a junior adviser or family member, 16% expect their firm to reassign clients, and 15% foresee an external sale.

McEwan said he would ‘love Craig to stay around as long as possible,’ and Hundt emphasized his preference for a partner who would preserve the firm’s continuity rather than cede control to an outside buyer that could impose clawback provisions in a downturn.