Angeles Wealth makes maiden acquisition with XO Capital deal

Angeles Wealth Management is making its debut in the family office arena as it ventures into the RIA merger & acquisition space for the first time.

On Tuesday, AWM announced it is acquiring XO Capital and using the boutique firm as the foundation for a new affiliate, Angeles Family Office.

Santa Monica-based Angeles Wealth, founded in 2011 to serve generationally wealthy families, said XO’s team and services will be integrated into the newly launched Angeles Family Office. XO, formed in 2021 by co-founders Adam Stern and Jason Oclaray, offers family office, business management and investment management services for affluent families with complex needs.

The deal marks the RIA’s entry into a segment of the market that has drawn growing interest from high-net-worth families and skepticism from some advisors about how loosely the “family office” label is being used. Some see genuine democratization of once-exclusive structures, while others argue too many RIAs are rebranding standard investment management plus referrals as a family office experience.

“With AFO, we’re creating what we believe is the ‘Goldilocks’ of family office offerings – not too big, not too small but just right,” said Jonathan Foster, president and CEO of Angeles Wealth. He added that many families need flexible service combinations “paired with disciplined investing that’s too often missing in the family office world.”

Through the acquisition, families will work with a single Angeles Family Office team that coordinates with outside tax and legal professionals while handling investment deal flow, customized reporting, cash-flow management, bill pay and other administrative services in house. The idea, the firm said, is to let wealthy families offload operational complexity so they can focus on other priorities.

The move also extends Angeles Wealth’s existing partnership with its institutional affiliate, Angeles Investment Advisors, which provides endowment-style investment resources. With Angeles Family Office, the firm is positioning that institutional investing capability, its wealth management practice and XO’s service platform as a unified offering for ultra-wealthy households.

“Launching AFO is about building on a strong foundation and expanding what we can offer the families we serve,” said Oclaray, now president of Angeles Family Office. He described the combined platform as “the family’s executive office,” with the firm expected to marshal resources across Angeles Wealth, Angeles Investment Advisors and XO’s legacy team.

The acquisition also builds on Angeles Wealth’s push for growth and inorganic expansion. Late last year, the firm hired industry veteran Jonah Cave as chief growth officer, tasking him with both business development and acquisition sourcing in the high-net-worth and ultra-high-net-worth markets.

Angeles Wealth reported $2.6 billion in assets under management as of Sept. 30, more than ten times its 2018 asset base, with offices in Santa Monica, New York City and Houston.