MAI Capital bulks up sports and entertainment planning with West Coast deal

Once the acquisition of Intersect Capital closes, working with professional athletes and entertainers will make up 20% of the $13.4 billion Cleveland-based RIA's business.

MAI Capital Management is acquiring Intersect Capital, a $1.3 billion registered investment adviser based in San Ramon, California.

MAI, a $13.4 billion RIA based in Cleveland, was introduced to Intersect by Galway Holdings, a financial services distribution platform that acquired MAI in September 2021.

According to the announcement, Galway and MAI have an “aligned partnership” to support MAI’s “ongoing strategic growth through M&A and organic activity.”

Intersect focuses on providing “personalized solutions to a select group of high-net-worth clients,” which includes working with professional athletes and entertainers. That piece of the business will fit in well with MAI’s sports and entertainment business, which came to MAI with its 2019 acquisition of MTX Wealth Management in Virginia.

Steve Trax, regional president and head of MAI Sports and Entertainment, said that after the Intersect deal, the sports and entertainment business will represent about 20% of MAI’s total assets under management.

“Sports and entertainment is a significant vertical within our business, and as we look at this opportunity I’m super excited,” said Trax, who joined MAI through the sale of MTX.

“Intersect is a great cultural fit for us, and they’ve got a great business on the West Coast,” he said.

Like MTX, Intersect will be rebranded as MAI once the deal is completed.

David DeVoe, founder and chief executive of DeVoe & Co., described the deal as “continued acquisition momentum for MAI.”

“This is their fourth deal in 2022 and their largest by far,” he said. “MAI’s average transaction size has been $422 million.”

DeVoe said Intersect gives MAI another foothold in California as part of a national expansion.

“MAI acquisitions have accelerated since Galway Holdings’ involvement,” he said. “Their ability to make strategic investments is powered by financial backing by Galway and WPCG.”

According to DeVoe & Co.’s latest report on RIA consolidation, the industry has posted 17 transactions already in July. This followed a record 66 transactions in second quarter, a record high.