Philadelphia-based myCIO Wealth Partners is latest deal in year of sky-high valuations for wealth managers.
The Affiliated Managers Group Inc. unit that takes stakes in independent financial advisory firms said Monday it acquired myCIO Wealth Partners, a Philadelphia-based firm managing $7 billion in assets for wealthy clients.
The deal is the latest in what has become a year of sky-high valuations in mergers and acquisitions among the largest and most highly prized registered investment advisers.
Founded in 2005, myCIO is among the larger independent financial advisory firms in the U.S. The firm is led by senior partners David Lees, James Biles and Paul Bracaglia. In regulatory filings, the firm reports that the vast majority of its clients are high-net-worth individuals.
“As the demand for tailored, high-end wealth advisory services increases, myCIO's unique focus on corporate executive financial and retirement planning, combined with customized investment advice, provides an outstanding platform for continued growth,” said John W. Copeland, AMG Wealth Partners' president, in a statement.
AMG said it will take a majority equity stake in the company as part of the deal, while myCIO “will continue to hold a substantial portion of the equity of the business and direct its day-to-day operations.”
AMG also said myCIO's senior professionals have “agreed to long-term commitments with the firm.” Beyond that, the deal terms were not disclosed.
In a statement, Mr. Lees said the deal would allow the firm to ensure its “long-term independence and autonomy.”
AMG, which is publicly traded, owns stakes in a variety of boutique asset managers and wealth management firms. Among its wealth management affiliates are Veritable, Baker Street Advisors, Clarfeld Financial Advisors and Welch & Forbes. Those firms have nearly $28 billion in combined assets. Including its asset management boutiques, AMG affiliates manage $638 billion.
AMG traded up 1.3%, to 216.52, Monday. Year to date, the stock price is up 2%.
