Segall Bryant & Hamill acquires Denver Investments, creating $20B wealth manager

The deal brings together two fund families and financial advisory businesses

Jan 12, 2018 @ 2:26 pm

By Jeff Benjamin

Chicago-based wealth management firm Segall Bryant & Hamill is acquiring Denver-based Denver Investment Advisors, creating a nearly $20 billion investment management and advisory firm.

Segall, Bryant & Hammil is a 23-year-old firm with $12.4 billion under management. Denver Investment Advisors, which has history dating back to 1958, has $7.3 billion under management.

The firms are similar in that they both manage portfolio assets, as well provide financial advice for clients.

"The deal highlights the fact that an increasing number of wealth management firms are moving into the investment management side of the business once they pass over the $2 billion mark," said Daniel Seivert, chief executive of the investment bank Echelon Partners.

"These hybrid firms can oftentimes add even more value to clients as they often have greater control of the underlying investments," he added.

David DeVoe, managing partner of the consulting firm DeVoe & Co., said both companies will benefit from the added scale of the combined business.

"This acquisition will strengthen Segall Bryant's position in the marketplace," he said. "The transaction expands their geographic footprint further west, provides a new family of mutual funds and deepens their institutional and wealth management platforms."

Terms of the acquisition were not disclosed, but Mr. Seivert said the $20 billion in combined assets represents an "important threshold to surpass in terms of valuation and multiple expansion that comes with scale."

"While peak profit margins are no guarantee for firms of this scale, when they can be achieved, the combination with the higher multiple is a beautiful thing for wealth management entrepreneurs to realize," he added.

As the companies are combined, it is expected that the Westcore Funds, which are advised by Denver Investments, will become part of the SBH fund family, subject to shareholder approval.

The combined company will be named Segall Bryant & Hamill.

The transaction is expected to close in the second quarter of this year.

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

INTV

When can advisers expect an SEC fiduciary rule proposal and other regs this year?

Managing editor Christina Nelson and senior reporter Mark Schoeff Jr. discuss regulations of consequence to financial advisers in 2018, and their likely timing.

Recommended Video

Path to growth

Latest news & opinion

Bond investors have more to worry about than a government shutdown

Inflation worries, international rates pushing Treasuries yields higher.

State measures to prevent elder financial abuse gaining steam

A growing number of states are looking to pass rules preventing exploitation of seniors.

Morgan Stanley reports a loss of advisers after exiting the protocol for broker recruiting

The firm said it lost 47 brokers in the fourth quarter, the most in any quarter of 2017.

Morgan Stanley's wealth management fees climb to all-time high

Improvement reflect firm's shift of more clients into fee-based accounts priced on asset levels, which boosts results as markets rise.

Legislation would make it harder for investors to sue mutual funds over high fees

A plaintiff would have to state in their initial complaint why fiduciary duty was breached, and then prove the violation with 'clear and convincing evidence.'

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print