Validus Capital, a California-based RIA with $2.5 billion in client assets, has entered a strategic partnership with Merchant, marking another move by the privatel held firm to deepen its presence in the wealth management space.
The deal, announced Tuesday, is intended to help Validus build what the firms call the “multi-family office of the future,” targeting high-net-worth and ultra-high-net-worth families seeking more comprehensive wealth management solutions.
It follows another sizeable deal announced last month, in which Merchant welcomed a $4.2 billion fiduciary RIA in Kentucky into its network.
Founded in 2022 by John Krambeer, Validus' journey as an independent advisory firm goes back further to 2004, according to its website. Today, the Los Angeles-domiciled firm, operating in El Segundo, stakes a claim as a modern multi-family office platform for UHNW families.
In particular, Validus touts its multi-generational sevice and proprietary reporting tools covering private market investments, as well as what it holds out as a differentiated alternatives platform.
“Families and institutions are seeking broader access to private markets at the same time as RIAs are stepping forward as the trusted channel for that access,” Marc Spilker, executive chairman at Merchant, said Tuesday.
Leaders from Validus Capital said the new partnership will allow it to accelerate growth and expand its platform for families with complex financial needs.
“We are excited to partner with Merchant to help us realize our vision for the multi-family office of the future,” Krambeer said in the announcement.
Merchant, which has invested in more than 115 firms and RIA practices across six countries, is positioning itself as a “lifecycle” investment partner for independent advisory firms.
"Evolving beyond minority stakes to lifecycle equity partners means Merchant has the flexibility to invest across the spectrum, from minority to majority positions, ensuring we can meet firms where they are and grow with them," Bello told InvestmentNews in February.
The move comes as the family office sector becomes increasingly competitive, with advisors seeking to capture a greater share of high-net-worth and ultra-high-net-worth clients’ assets. According to a recent Cerulli report, client service offerings will be a key differentiator for HNW and UHNW practices, as expectations for personalized, technology-driven, and tax-efficient solutions continue to rise.
Cerulli highlighted trust administration and trustee services as a point of focus for HNW practices, with three-fifths (61%) saying they provide those services in 2024 – a drastic jump from two-fifths (42%) in 2017.
Merchant has been moving to address that need within its ecosystem. Last month, it unveiled a collaboration with Sterling Trustees, a chartered trust company in South Dakota with $11 billion in client assets worldwide.
Prior to that, Merchant struck up a partnership with WRV, a boutique provider of valuation services, which Bello said was an expansion of another relationship it had forged with investment bank Republic Capital Group.
Meanwhile, Raymond James snags Edward Jones advisor in Arizona.
New Morgan Stanley research shows retirement planning is a key area where advice is required.
ASA reacts as regulator drops no-deny policy, freeing firms and individuals to publicly dispute allegations after reaching settlements.
Joel Frank allegedly sold more than $39 million worth of investments in the Equilus Funds to more than 90 investors,
The Charity Parity Act would eliminate a costly IRA rollover requirement that blocks direct charitable transfers from workplace retirement plans.
As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management
Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline
