United Capital moving up the food chain, buys $1.6B RIA

Purchase of Zirkin-Cutler biggest acquisition to date for roll-up firm
MAR 24, 2011
United Capital Financial Partners Inc. is acquiring Zirkin-Cutler Investments Inc., a $1.6 billion registered investment advisory firm owned by M&T Bank Corp. The firm plans to announce two additional acquisitions tomorrow and yet another one in a few months, said Joseph Duran, chief executive of United Capital. “This is the biggest investment management firm that we have ever acquired,” Mr. Duran said. Terms of the deal were not disclosed. “I am sure we were not the highest bidder,” Mr. Duran said. “It's a very good cultural fit.” Mr. Duran founded the wealth management shop, which has $13 billion in assets under management, in 2005 and has expanded it both organically and through acquisitions. Last year, United Capital made six acquisitions, bringing in over $2.5 billion in assets, while it also brought in $300 million by attracting new clients, Mr. Duran said. M&T was looking to sell Zirkin-Cutler because it didn't consider it a “core asset,” he said. Mr. Duran declined to comment on the details of the upcoming acquisitions the roll-up specialist plans to announce. But since its first acquisition — of Financial Synergies Asset Management Inc. in May 2005 — United has acquired more than 30 RIAs and broker practices. While about one-third of United's 25 or so offices comprise former full-service brokers from companies such as UBS Wealth Management and Oppenheimer Holdings Inc., the firm has found independent broker-dealers such as Commonwealth Financial Network and Ameriprise Financial Services Inc. to be its most fertile recruiting grounds.

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