Pathstone snaps up Crestone Capital in $3B deal

Pathstone snaps up Crestone Capital in $3B deal
The employee-owned RIA will see its AUA balloon past $100 billion as it builds a 'true multi-generational family office experience.'
FEB 15, 2024

Pathstone has just unveiled a strategic acquisition that promises to cement its dominant position in the ultra-high-net-worth space.

The independent RIA, known for its investment advice and family office services, has announced a plan to acquire Boulder, Colorado-based wealth management firm Crestone Capital.

Established in 1991 by Eric Kramer, Crestone Capital has built a reputation for its tailored investment management and advisory services, catering to a select group of entrepreneurs, business owners, and their families with a combination of boutique, high-touch services and an institutional approach.

With offices in Colorado, Texas, and California, Crestone manages more than $3 billion in client assets and advises approximately 150 families, focusing primarily on serving first-generation entrepreneurs and wealth creators.

Pathstone, headquartered in Englewood, New Jersey, operates as a partner-owned advisory firm.

Once completed, the acquisition will significantly increase Pathstone's assets under advisement and administration, bringing the total to over $100 billion. It also expands Pathstone's national footprint, adding to its 20 offices across the United States and increasing its team to over 550 members, including more than 225 who own shares in the firm.

“From the very beginning, we admired Crestone’s culture and approach to working with sophisticated families," Matt Fleissig, CEO of Pathstone, said in a statement. Highlighting the firms’ shared focus on serving UNHW families, Fleissig underscored his commitment to “build a true multi-generational family office experience for our clients.”

“The rationale for this agreement is simple: we are a better firm, together,” said Kramer, CEO and managing partner of Crestone.

Once the acquisition is complete, Kramer will join Pathstone’s CEO council. Crestone President Matt Wiles, meanwhile, will be joining Pathstone’s regional leadership team.

Pathstone’s acquisition-driven strategy to conquer the UHNW space has actually been in motion since last year.

In July, it announced that it would snap up Veritable, a $17 billion multifamily office firm, from Affiliated Managers Group. Last May, it announced plans to acquire Brainard Capital Management, a Texas-based RIA firm with $2 billion in AUM.

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