Evercore Wealth snags Mt. Eden in West Coast expansion

Latest RIA deal as managers look to beat capital gains hike

Nov 8, 2012 @ 1:59 pm

By Bruce Kelly

RIA
+ Zoom

Another large California-based registered investment adviser is off the block with the announcement Wednesday by Evercore Wealth Management LLC that it had agreed to acquire Mt. Eden Investment Advisors LLC, a San Francisco wealth manager with $645 million in client assets.

Last Friday, fast-growing Luminous Capital, which is based in Los Angeles and manages $5.5 billion, said it had sold itself to First Republic Bank.

Advisers who are in the process of selling their firms are intent on completing closure of deals before the end of the year, when it appears likely that the capital gains tax will go up, industry consultants and bankers said.

“If advisers are negotiating [a merger], they can benefit if it's finalized before Jan. 1,” said David DeVoe, managing partner of DeVoe & Co. “If they are not in negotiation, it's unlikely they can do that deal before the end of the year.”

Without a deal between President Barack Obama and Republicans in Congress, the Bush-era tax cuts are set to expire Dec. 31. Capital gains taxes would revert to a 20% rate, versus the current level of 15%.

Meanwhile, northern California is a particularly attractive area for establishing or expanding a presence because of the increasing wealth of executives in the technology sector.

“Organizations on the West Coast are in position to grow and show gains,” Mr. DeVoe said. “That part of the market is attractive.”

The fact that two large deals involving California firms were announced over the past week was partially “coincidental,” Mr. DeVoe said, adding that “the parts of the country that are experiencing growth will create more growth for RIAs. Good-size deals are brewing out there.”

A West Coast transaction had been a priority for Evercore.

“The expansion of our West Coast presence is an exciting step in our continued growth as a national firm,” Evercore chief executive Jeff Maurer said in a statement. The firm named three Mt. Eden executives as partners: Keith Williams, founder, CEO and chief investment officer; Tim Barrett, a founding principal, and Michael O'Brien, a senior portfolio manager and principal.

Terms of the deal were not disclosed.

Evercore Wealth Management was founded in 2008 and manages $3.8 billion in client assets.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

INTV

Stephanie Bogan: How financial advisers can achieve more by reframing their realities

By revaluating the choices they make and the outcomes that result from them, financial advisers can make sure they're properly serving those most important to them — their clients, according to Stephanie Bogan, founder of Educe Inc.

Latest news & opinion

Jay Clayton says SEC, DOL can give market 'clarity' on fiduciary rule

Chief regulator is confident two agencies could reach 'common ground' on an investment advice standard across all accounts.

Vanguard winning at bond inflows, too

But iShares is strong competition.

Sen. Gary Peters brings broker background to work every day on Capitol Hill

Michigan Democrat resists ripping up DOL fiduciary rule but would be open to some changes.

DOL fiduciary rule causing DC-plan record keepers to change business with insurance agents

Principal has communicated that independent agents must change their business models to keep receiving compensation.

DOL fiduciary rule opponents want to push implementation back until 2019

ICI, Chamber of Commerce among groups asking for delay, while Democratic lawmakers call on DOL to keep to its earlier planned schedule of Jan. 1, 2018.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print