During the first week of the new year, active acquirers in the registered investment adviser sector announced a series of new transactions. Some were completed last year, but others closed this week or are scheduled for this quarter. This is not an exhaustive list, these deals may indicate that the RIA M&A market will remain strong in 2023.
Prime Capital Investment Advisors acquires 4 companies in 1 month
Prime Capital Investment Advisors closed its first deal of the year on Jan. 3 with the acquisition of Stonnington Group, a Pasadena, Calif.-based registered investment adviser with $575 million in client assets. The purchase follows a busy December, in which PCIA completed three transactions and added a combined $2.1 billion AUM, SRI expertise and remote capabilities.
The 2023 acquisition expands PCIA’s presence in Southern California while adding 275 customers and five new employees, including President Nick Stonnington. The company, which will retain its own brand image, prioritizes active asset management and execution in its service model.
“Partnering with PCIA will unlock the capabilities, expertise and deep resources of our collective team to further benefit our customers here in Southern California, as well as support other PCIA customers across the country,” Stonnington said. .
“Stonnington Group is a multi-generational business that operates with a whole team approach that aligns well with Prime Capital,” said Glenn Spencer, CEO of PCIA. “Nick and his team have proven their ability to provide excellent customer service and grow their business.”
In December, PCIA took over the $1.75 billion AUM Liberty Wealth Advisors, with 15 employees in nine states and a remote service offering. A week later, Professional Financial Services and Earth Equity Advisors were each acquired, with $185 million and $151 million in assets, respectively.
PFS brought PCIA’s presence to the Sioux Falls area of North Dakota and Earth Equity expanded its capabilities in sustainable, responsible and impact investing.
“We strive to provide our clients with strategies that fit their goals and their lives,” Spencer said. “As a leader in the field of SRI, Earth Equity will accelerate our efforts and enable us to provide our clients with access to responsible investment options.”
PCIA currently has 51 locations in the United States and oversees approximately $17.3 billion in client assets as of January 4, 2023.
Carnegie Investment Counsel buys RiverStone Wealth Management
Carnegie Investment Counsel announced the acquisition of RiverStone Wealth Management in Wexford, Penn. The deal, which closed last year, added $230 million to the Cleveland-based RIA.
Founded in 2008, RiverStone specializes in providing personalized wealth management solutions to individuals, families and retirement plans. The company was represented in the transaction by InCap Group, a boutique investment bank for the financial services industry.
Carnegie got its start in 1974, when it was originally founded by investment firm Prescott, Ball & Turben. The company serves a national clientele consisting of individuals, families, not-for-profit organizations, foundations and endowments, as well as pension plan sponsors. It now oversees more than $3.5 billion in client assets through its RIA and advises $400 million through its pension division through offices in Cincinnati; Fort Myers, Florida; Los Angeles, New York, Pittsburgh, Penn. ; Philadelphia and Toledo, Ohio.
“We are all excited about our partnership with Carnegie Investment Counsel,” said RiverStone co-founder Wes Creese. “Every interaction with the Carnegie leadership team confirmed that our organizations were not only a strong cultural fit, but our approach to serving customers was also similar.”
EP Wealth Advisors continues Northeast expansion with Maine-based Cribstone Capital
EP Wealth Advisors closed its 6th and final deal of 2022 on December 31 with the acquisition of Cribstone Capital, a $357 million AUM company with two locations in Maine. The Cribstone Crew is the third EP added to the East Coast since its inception first move to the region last September.
Founded in 2015, Cribstone was led by Scott Upham and Jeff Burch, who are now partners and regional directors of EP, and Amyn Moolji, now managing director of EP Wealth’s portfolio strategy team. They are joined by three other team members, bringing the total number of EP employees to approximately 330. Financial and legal terms of the agreement were not disclosed.
“Cribstone was built on a similar foundation to EP Wealth and is focused on providing personal and targeted plans to the full spectrum of clients,” said EP CEO Patrick Goshtigian. “Scott, Jeff and their team share EP Wealth’s focus on providing financial health plans to clients, as well as a platform for growth and development for employees. They are a welcome addition as we continue to expand our geographic footprint while providing exceptional local service.”
Cribstone plans to leverage EP’s planning, tax, estate, portfolio strategy, investment and technology resources “to help set the stage for growth beyond Maine to New Hampshire and Vermont,” according to an announcement.
“Coming together felt like a natural progression for our firm and a great opportunity for our current and future clients,” Upham said.
“The added depth and breadth of resources and services will allow us to focus on and improve our customer services, as well as expand our reach in Maine and throughout the region,” Burch added.
Based in the greater Los Angeles area, EP was founded in 2004 and is backed by Berkshire Partners, a Boston private equity firm. After taking a minority stake of Wealth Partners Capital Group in 2017, the firm embarked on an inorganic national strategy, acquiring companies in California, Washington, Colorado, Arizona, Illinois, Texas, Utah, Massachusetts, Pennsylvania and , now in Maine. EP currently oversees over $15 billion in client assets.
“The established relationships and shared goals between Cribstone and EP have made them a strong and cohesive couple,” said WPCG Director Nick Trepp. “EP’s acquisition of Cribstone strengthens its presence in the North East, exemplifying EP’s thoughtful and tactical growth strategy over the years.”
Parallel Advisors to Accelerate M&As with Recapitalization
Bay Area-based Parallel Advisors has acquired Scottsdale, Arizona-based AUTUS Asset Management, along with a “substantial investment” from private equity firm Golden Gate Capital. Emigrant Partners, a minority investor in both Parallel and AUTUS, exited its position in the combined company.
Founded in 2006 and led by CEO CJ Rendic, Parallel serves high net worth individuals and pension/profit sharing plans through advisory, wealth planning, operations and investment teams, in deploying a holistic approach to wealth management and a team-driven service platform. The Golden Gate investment will allow the company to accelerate its mergers and acquisitions strategy and organic growth opportunities, according to an announcement.
AUTUS is a boutique asset management firm with approximately $900 million in assets under management. The firm provides personalized wealth management services to high net worth individuals, families and endowments.
Republic Capital Group, an investment bank specializing in the RIA, asset and wealth management and securities sectors, supported AUTUS in the context of the acquisition and Parallel in the capitalization process which followed.
“Parallel Advisors, AUTUS Asset Management and Golden Gate Capital are all great firms,” said John Langston, managing partner of Republic Capital Group. “Having the opportunity to bring all three together was exciting and we appreciate their partnership and trust throughout this process.”
The acquisition of AUTUS closed on December 30, 2022. Financial terms of either transaction are not disclosed.
Dakota Wealth Management receives minority investment from Emigrant Partners
After exiting its partnership with Parallel Advisors, Emigrant Partners entered into another with Dakota Wealth Management in Palm Beach Gardens, Florida.
Under the agreement, Emigrant makes a non-voting minority investment in the growing company. Details of the transaction were not disclosed.
Founded in 2018 by Peter Raimondi, Dakota provides investment management, wealth and estate planning, and tax planning services to more than 1,700 clients. Since its creation, the company has made seven acquisitions and several recruitments of advisors. At least some of the capital will support future inorganic growth opportunities, according to an announcement.
“At this point in our development, we made the decision to seek out a partner who could help us meet our current and future capital needs and work closely with us to execute our strategic initiatives at a faster pace. than we could alone,” Raimondi said.
“Dakota has built and grown an impressive and differentiated wealth management platform in less than five years,” said Karl Heckenberg, CEO and President of Emigrant Partners. “We look forward to working with Dakota’s talented management team to help them achieve their growth goals.”
Buckingham Strategic Wealth acquires Oxford Financial Partners
Focus Financial Partners announced this week that it has reached an agreement in which partner firm Buckingham Strategic Wealth will buy Oxford Financial Partners, a Cincinnati-based registered investment adviser with approximately $278 million in assets under management.
Oxford Financial Partners is a wealth management firm that provides financial planning services and investment advice primarily to high net worth individuals.
“By joining Buckingham, we can leverage their vast resources, talent and national footprint to positively impact the lives of our customers now and in the future, while retaining the personalization of a local business. “, said Erik Christman, managing member of Oxford.
The transaction is expected to close in the first quarter of 2023, subject to conditions, when the Oxford Financial Partners team will join Buckingham, establishing the company’s first office in Cincinnati.
“We look forward to leveraging our operational scale to add to their highly tactile wealth management experience and establish our footprint in the Cincinnati metro area and beyond,” said Buckingham CEO Adam Birenbaum.