Allworth Financial acquires $2.8 billion RIA

PE-backed Allworth reaches $7.5 billion under management as it marks its fifth deal this year.
OCT 28, 2019
Sacramento, Calif.-based Allworth Financial continued its aggressive acquisition strategy by purchasing Dallas-based RAA, a $2.8 billion registered investment adviser that specializes in serving airline industry employees. The deal, which is subject to regulatory approval, marks the fifth acquisition this year for Allworth and the sixth since it sold a 70% ownership stake to private-equity investors Parthenon Capital Partners two years ago. Once the deal is completed, Allworth, which changed its name earlier this year from Hanson McClain Advisors, will manage approximately $7.5 billion. "We target middle-class millionaires as they transition to retirement and that's a lot of what RAA is," said Scott Hanson, Allworth co-chief executive officer. He added that RAA would be maintained as a sub-brand for now, "because they have a great reputation in the airline space." In addition to Dallas, RAA has offices in Atlanta and Seattle, and Mr. Hanson said he does not anticipate any job cuts as a result of the acquisition. "We are growing so we need more people, not less," he said. The deal comes on the heels of a record quarter for consolidation in the RIA space, according to DeVoe & Co. The record 36 deals during the just-ended third quarter contributed to the 101 deals transacted during the first nine months of the year, which surpasses the 100 deals completed during all of 2018. "This is a strategic transaction for Allworth," said David DeVoe, managing director of DeVoe & Co. "In addition to adding significant assets and expanding their geographic footprint, this deal provides them with a path toward improving their specialization with specific client segments," he added. "RAA is a great example of an RIA that focused deeply on a specific client segment, understood their specific compensation plans and company programs, tailored their services to said base and then benefitted from a growing reputation within." [Recommended video: Remembering Jud Bergman: His reflections on Envestnet's 20 years]

Latest News

When Growth Outruns the System
When Growth Outruns the System

According to Flyer Financial Technologies, rising portfolio complexity is exposing the limits of legacy infrastructure and widening the gap between automation and reality

Why strategy matters more than performance
Why strategy matters more than performance

In volatile markets, the advisors who win aren't the ones with the best calls - they're the ones whose clients stay the course.

SEC to lose Hester Peirce, deepening a commissioner crisis
SEC to lose Hester Peirce, deepening a commissioner crisis

The "Crypto Mom" departure would leave the SEC commission with just two members and no Democratic commissioners on the panel.

Florida B-D, RIA owner pitches bold long-term plan to sell to advisors
Florida B-D, RIA owner pitches bold long-term plan to sell to advisors

IFP Securities’ owner, Bill Hamm, has a long-term plan for the firm and its 279 financial advisors.

Fintech bytes: Vanilla, Wealth.com forge new estate planning partnerships
Fintech bytes: Vanilla, Wealth.com forge new estate planning partnerships

Meanwhile, a Osaic and Envestnet ink a new adaptive wealthtech partnership to better support the firm's 10,000-plus advisors, and RIA-focused VastAdvisor unveils native integrations with leading CRMs.

SPONSORED When Growth Outruns the System

According to Flyer Financial Technologies, rising portfolio complexity is exposing the limits of legacy infrastructure and widening the gap between automation and reality

SPONSORED Why strategy matters more than performance

In volatile markets, the advisors who win aren't the ones with the best calls - they're the ones whose clients stay the course.