This Week in RIA M&A: Beacon Pointe Lassoes $1.2-Bln AUM TX RIA, Captrust Grows in CA
Beacon Pointe Advisors, a serial acquirer of registered investment advisory firms, on Thursday closed its largest transaction yet with the purchase of Wealthstreet Investment Advisors, a Dallas, Texas RIA managing nearly $1.2 billion in assets.
With the Wealthstreet deal, Beacon has acquired more than $5 billion in assets under management since its founding in 2002. Most of its purchases have been made in the last two years. Financial terms of Thursday’s deal were not disclosed.
Wealthstreet was established in 1977 as Gerald L. Ray and Associates. It changed its name in 2017 and is now run by Joe Ray–son of the original firm’s namesake founder–as well as Michael Kane and Michael Beck, who have joined Beacon Pointe as managing directors.
“In a world where scale and breadth increasingly matter, Beacon Pointe provides world class research, financial planning and alternatives capabilities while maintaining a culture of dedication and service that Wealthstreet clients have come to expect,” Joe Ray said in a prepared statement.
Beacon Pointe took a minority investment from private equity firm Abry Partners in March 2020 and has since purchased at least five RIAs, including two in Florida and one each in South Carolina, Louisiana and California.
Captrust Financial Advisors
Meanwhile, Raleigh, North Carolina-based aggregator Captrust Financial Advisors announced Thursday that it acquired Pacific Investment Consultants, a Folsom, California-based independent practice with Wells Fargo Advisors Financial Network.
PIC, which is led by Christeen Reeg, Scott Gordon, Bill Altavilla, Debbie Hightower and Ryan Jantzen, worked with 600 clients and managed $700 million in assets, according to an announcement.
The deal, which closed on February 26, was the second for Captrust in the Sacramento area in as many months. It also acquired Genovese Burford & Brothers Wealth and Retirement Plan Management, which had managed roughly $3.1 billion in assets, in January.
“Joining Captrust will allow us to leverage their vast resources to strengthen our client outcomes and grow our team,” Reeg, who started her career in 1994 with London Pacific Securities and switched to Wells in 2004, said in a prepared statement.
As with all firms that join Captrust, PIC will adopt the parent company’s name and branding.
Captrust, which is majority-owned by its employees and executives, has purchased 48 businesses since 2006. In June 2020, private equity firm GTCR purchased a 25% stake in Captrust, in a transaction valuing the RIA at roughly $1.25 billion. The firm oversees more than $60 billion in assets under management.
Focus Financial Partners
LaFleur & Godfrey, a Focus Financial Partners affiliate based in Grand Rapids, Michigan, is acquiring Investment Counsel, a $171 million-asset RIA located a three-hour drive north up the Lower Peninsula in Petoskey.
The Focus ‘tuck-in’ is expected to close in the second quarter of 2021, according to an announcement from the New York City-based RIA roll-up.
“This transaction will allow Investment Counsel to leverage L&G’s extensive resources and enable us to establish a long-term continuity plan so that Investment Counsel’s clients will always be taken care of,” Investment Counsel President Chris Walker said in a prepared statement.
L&G, which joined Focus in 2013 and manages about $615 million in assets, completed one other transaction in the past year. It bought Gimbal Capital Management, a Grandville, Mich.-based advisor’s practice with around $60 million in assets in July 2020.
Focus Chief Executive Rudy Adolf on the company’s fourth-quarter earnings call in February touted a billion-dollar war chest to continue doing deals in 2021. Later that month, Focus’ private equity backers, KKR and Stone Point, revealed that they were divesting some of their 40% stake in Focus through a secondary stock sale.
Arete Wealth, a Chicago-based RIA, independent broker-dealer and insurance firm, on Wednesday announced the closing of its acquisition of Center Street Securities, which managed about $1 billion in assets.
The addition of the Nashville, Tennessee-based RIA and broker-dealer boosted Arete’s total assets under management to $5.7 billion and its number of registered representatives by 75% to 265, the firm said. Arete also touted the deal, announced in January, as an enhancement to its alternative investments offering.