Arax adds $9B with Texas acquisition

The wealth platform dramatically expands its capabilities with deal for a Houston-based firm catering to HNW and UHNW clients.

Arax has just taken a massive step to expand its wealth management capabilities with a deal in Texas. The wealth firm announced the incorporation of U.S. Capital Wealth Advisors, a step that elevates Arax’s assets under management to more than $16 billion.

A Houston-headquartered independent wealth firm, U.S. Capitol West Advisors manages around $9 billion in assets, servicing over 5,500 clients with a team of 62 advisors.

This merger is expected to significantly enrich Arax’s service offerings, incorporating comprehensive financial planning, investment, and insurance solutions for high-net-worth and ultra-high-net-worth clients.

With a strong operational base in major Texas cities such as Houston, Austin, Dallas, and Georgetown, as well as in New York City and Massachusetts, USCWA is poised to make a substantial contribution to Arax.

Arax’s boutique wealth platform, which is backed by RedBird Capital Partners, has grown into a business encompassing 120 advisors and more than 12,000 clients.

“USCWA was founded on the same principles as Arax, enabling financial advisors to provide expert, holistic solutions to clients that combine the personal touch of a regional firm with capabilities available to larger, national institutions,” Arax CEO Haig Ariyan said in a statement.

Ariyan expects the marriage of a multicustodial advisory platform with USCWA’s broker-dealer will generate better opportunities and advisors and clients within the Arax enterprise.

Emerging from a strategic merger between U.S. Capital Advisors and Legacy One Financial in 2021, USCWA will retain its branding and continue its core advisory and client-facing operations as an integral part of the Arax platform.

The firm’s co-managing partner, Pat Mendenhall, who was also a founding leader of the firm along with Dave King and Jim Fortescue, expressed excitement about the merger, noting Arax’s unique partnership strategy and adaptable platform as pivotal for delivering superior client results.

“We strive to provide clients and advisory teams the sophisticated financial support, direction and solutions they need with an unrivaled client-centric experience,” said Mendenhall, who has four decades of experience.

John Paul Dejoria, a distinguished entrepreneur and a primary investor in Legacy One, will maintain his involvement as a significant shareholder in USCWA.

“I have enjoyed being on the inside of the independent wealth industry at US Capital Wealth as a client first and then a partner and owner,” Dejoria said, expressing confidence that the partnership with RedBird and Arax will benefit USCWA’s shareholders, clients, employees and advisors.

Arax’s Texas acquisition follows the news last month that one of its partner firms, Ashton Thomas Private Wealth, snapped up a $500 million team from Raymond James.

Arax started off 2024 on a strong note, with a series of announcements in January that included a standout $1 billion deal for Excel Securities.