Firm surpasses $5 billion in AUM in latest deal for $1.2 billion CapGroup Advisors.
The acquisition-hungry Colony Group, a large Boston-based RIA, is continuing to land large deals with its latest purchase of the $1.2 billion CapGroup Advisors in Richmond, Va.
The deal for CapGroup, Colony's fourth since 2011 when it became part of Focus Financial Partners, puts Colony at over $5 billion in assets under management and moves it closer to what its chief executive, Michael Nathanson, called “national” ambitions.
The deal fills a key geographic location on the East Coast and boosts Colony's institutional assets to over $1 billion, he said.
“We saw in CapGroup several hundred million in money managed for private clients, and that's something we feel we can insert our national expertise into,” he said. “Also, CapGroup is well known nationally for its institutional practice, and while Colony Group has an institutional practice, this brings us to a whole new level.”
The deal was financed by Focus Financial Partners, which has ownership stake in both Colony and CapGroup. Exact terms, however, were not disclosed.
CapGroup's 12 employees will now operate under The Colony Group, and bring the total staff at the combined firm to 84. Some CapGroup executives will take on new executive positions at Colony. John White, for example, who was formerly chief operating officer at CapGroup, will be chief administrative officer at Colony.
“John White is an example of someone who assumes a role not just based in Richmond, but nationally,” Mr. Nathanson said. “[He is] someone who can help us nationally and support us nationally in our ongoing growth.”
Mr. Nathanson declined to offer specifics on what qualifications, such as assets under management, Colony would need to reach to be considered national, but he did say the firm would continue to expand with similar acquisitions.
“We will continue to look for these kind of opportunities, and you will see The Colony Group making these kind of moves,” Mr. Nathanson said.
Colony already has offices in Massachusetts, New York and Florida, but needed to fill out its presence on the East Coast, he said.
“This was a logical place for us to be,” Mr. Nathanson said. “It gives us offices truly up and down the East Coast.”
Colony had $1.3 billion in assets under management when it joined Focus in 2011 and made its first major deal in 2012 with the merger of Mintz Levin Financial Advisors.
Focus has over 30 partner firms that give up a share of equity in exchange for an ownership stake in Focus and financing or succession planning assistance.
