The strategy of intra-network consolidation is continuing at Focus Financial Partners as another firm merges into one of its designated hubs.
On Tuesday, the RIA aggregator announced a definitive agreement for its partner firm Gratus Capital to join The Colony Group. The transaction, expected to close in the third quarter of 2024, remains subject to customary closing conditions.
Gratus Capital, which has been a Focus partner since 2014, primarily serves high net worth individuals and families, with services including investment management, comprehensive financial planning, and business owner strategies.
Upon completion of the transaction, Gratus will contribute approximately $3.8 billion in regulatory assets under management, as measured on May 31, to Colony's portfolio.
Colony has already entered deals to engulf several other Focus partner firms this year, including GW & Wade's $10.4 billion practice in March, the Tennessee-based InterOcean Capital Group in April, and national investment advisor Buckingham Strategic Wealth in May.
“Gratus’ expanding team is a strong fit for our organization. Their culture and processes have enabled their growth, and the resources we are cultivating at Colony will be deployed to help firms like Gratus maintain and accelerate that growth,” said Adam Birenbaum, who was appointed to become CEO of Colony following its combination with Buckingham Strategic Wealth.
The latest merger transaction will enable Gratus to leverage Colony’s extensive expertise, tools, and resources, such as tax and family office services. For Colony, the addition of Gratus’ skilled team will enhance its holistic and tailored financial advice offerings.
The deal is also expected to bolster Colony’s presence in the Southeast, particularly in the strategic Atlanta market.
“Gratus was founded on the mission of helping clients make the most of their life journey. Joining Colony is a natural step in continuing to offer and expand the expertise, guidance, and hands-on advice that our clients rely on to accomplish their life’s goals,” Hank McLarty, founder and CEO of Gratus, said in a statement Tuesday.
“Colony has grown considerably over the last year, and the combination with Gratus will add to this momentum,” said Michael Nathanson, CEO of Focus. “Gratus’ commitment to creating successful client and team member experiences aligns with what Colony has built.”
Earlier this month, Focus announced another significant combination within its network as Relative Value Partners is set to merge with Kovitz Investment Group Partners. That deal will result in a combined entity overseeing more than $24 billion in client assets.
Plus, a $400 million Commonwealth team departs to launch an independent family-run RIA in the East Bay area.
The collaboration will focus initially on strategies within collective investment trusts in DC plans, with plans to expand to other retirement-focused private investment solutions.
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