PE Strikes Again: Lightyear-Backed Cerity Buys $1.1 Billion Boston RIA
Chicago-based Cerity Partners has acquired Bainco International Investors, a Boston-based registered investment advisory firm managing $1.1 billion in assets, according to an announcement on Tuesday.
The deal comes amid a flurry of M&A by private-equity backed roll-ups and RIA as consultants say the Covid-19 pandemic accelerated succession planning for many independent practices. Cerity also in December announced it bought Greenwich, Conn.-based Algonquin Advisors, managing $232 million, and San Francisco-based Worldview Wealth Advisors, managing $140 million.
Bainco was founded in 1987 by Sam Bain, a former broker who started his career at Merrill Lynch in 1976, according to BrokerCheck. Its clients are primarily business owners, executives, and families who have at least $5 million in liquid assets, according to the firm’s June 2020 Form ADV filing.
“Working hand-in-hand with our new colleagues at Cerity Partners will allow us to expand the resources available to our financial advisors and ultimately enhance the value we deliver to our clients,” Bain said in a statement.
Bain left Merrill to join Donaldson, Lufkin & Jenrette Securities in 1981 and then moved to New England Securities for a 3-year stint, according to his BrokerCheck profile. In 1994, Bain re-registered as a broker with Newbury Street Capital LP, but has not been registered as a broker since 2017.
The RIA was one of a number who took a Paycheck Protection Program (PPP) loan for coronavirus relief last year and obtained $485,300 through the U.S. Small Business Administration, according to its ADV.
Lightyear Capital, which has been an opportunistic trader of RIAs and independent broker-dealers, purchased a 50% stake in Cerity, then known as HPM Partners, in 2018 from RIA investor Emigrant Bank.
Separately, in another RIA deal announced on Tuesday, The Mather Group, a Chicago-based RIA managing $5.6 billion in assets, said it acquired Trinity Financial Advisors, which is also based in Chicago. Founded in 2000 by John Wimbiscus, TFA manages about $187 million in assets.
The deal marked the 8th acquisition in a little more than two years for The Mather Group, which is family and employee-owned and has mostly added firms managing under $500 million in assets.