Pursuit of scale pushes $5.8 billion Monroe Vos into welcoming arms of Captrust

The co-founder of the Houston-based registered investment advisor said $6 billion in size isn't what it used to be.

Captrust Financial Advisors has sealed its first deal of 2023 with the acquisition of Monroe Vos Consulting, a $5.8 billion RIA based in Houston, Texas.

The deal, which is Captrust’s 64^th since 2006, folds in a team that traced its origins to 1988 at Prudential Securities. Monroe Vos went independent in 1994 and currently employs 17 people, with a second office in Birmingham, Alabama.

One of the driving forces behind the sale, which speaks volumes about the state of the RIA space today, was the pursuit of scale, said Tim Vos, who co-founded the advisory firm along with Jim Monroe.

“After putting our heads together, we realized we need scale in today’s market, and the kind of sustainability to let the firm continue to grow,” Vos said. “And we also wanted everybody to become shareholders, and at Captrust there is a path to equity ownership.”

According to a Captrust spokesperson, equity ownership opportunities is offered to all employees after three years with the firm.

Asked about how a nearly $6 billion RIA could feel behind the curve in terms of scale, Vos said, “In today’s world, $6 billion is not really scale.”

“Being part of a larger organization gives opportunities to lower costs, it gives you buying power, and access to more research,” he added.

Monroe Vos blends with Captrust’s overall model by providing advisory services for retirement plan sponsors, endowments, and foundations, as well as wealth management services to high-net-worth individuals and family offices.

“The genesis of Monroe Vos was to avoid conflicts of interest and to put clients first, and the alignment of these values led us to choose Captrust,” Vos said. “Captrust’s culture and philosophy have a lot of similarities to ours at Monroe Vos.”

Rick Shoff, managing director of Captrust’s advisor group, cited the “cultural fit” as a key element of the deal.

“We’ve known them for a long time,” he said. “We’re getting a lot of talent through the Monroe Vos team. Tim and the entire firm bring an experienced perspective across all three of our business lines. We look forward to joining forces in Texas, especially as we continue to expand in this market.”

Vos, who’s 67, said the sale is not part of his succession plan.

“This is my hobby; I do not plan to retire,” he said. “I’m 67 and I’ve got a long way to go yet.”

Founded in 1997 in Raleigh, North Carolina, Captrust has more than 1,300 employees across 75 locations in the U.S. The company oversees more than $125 billion in assets under management and more than $775 billion in assets under advisement.