With an eye on more acquisitions, both in California and beyond, Beacon Pointe Wealth Advisors LLC announced its fifth acquisition this year and second this month.
The Newport Beach, Calif., based RIA conglomerate announced Monday it bought Pacific Pointe Advisors LLC, a $175 million RIA based in Santa Barbara, Calif.
Beacon Pointe is in talks with additional firms in California, where it already has four offices, as well as advisers in Denver, Boston, and Richmond, Va., said Matt Cooper, Beacon Pointe’s president.
“It’s a much tougher marketplace, so there are benefits to scale,” Mr. Cooper said. “Being part of a larger firm gives them the resources and the value proposition to attract other advisers.”
The latest all-equity deal continues a surge of mergers-and-acquisitions activity for registered investment advisory firms, which are looking to access new markets and plan for a succession in ownership, according to industry analysts.
Beacon Pointe is among a growing number of firms eyeing expansion by targeting advisers with between $100 million and $300 million in assets under management. The firm touts its ability to help advisers reduce compliance and research costs while establishing a succession plan.
Beacon Pointe, which has $900 million in assets under management, is owned jointly by its advisers and the holding company.