Captrust Financial Advisors has closed its fifth acquisition of the year and its third in Texas with the addition of Southern Wealth Management, a $2.3 billion RIA based in San Antonio.
In a testament to the direction and momentum of the multiyear consolidation across the wealth management space, the primary motivation behind the sale of Southern Wealth Management was a pursuit of scale.
“Most of these firms are deciding to partner with a larger firm because they recognize the benefits of scale and want to tap into better technology and better marketing,” said Rush Benton, senior director of strategic growth at Captrust, a $714 billion RIA aggregator based in Raleigh, North Carolina.
Asked about the idea of a $2.3 billion advisory firm not already having a certain level of scale, Benton responded that “it’s all relative.”
“Some of the larger firms like this have a greater appreciation for what scale really is and the need for it,” he said. “A lot of the day-to-day work of running the business is taken away when you join Captrust.”
Southern Wealth Management was established in 2005, when it was spun off from Ernst & Young. In addition to San Antonio, the RIA has offices in Dallas and Midland, Texas, as well as New Orleans, Louisiana.
The firm has 63 employees and works primarily with high-net-worth families.
“At SWM, we have enjoyed longstanding multigenerational relationships with families, and in the same vein, we saw longevity and growth for our firm by joining Captrust,” said managing partner Dick Jones in a prepared statement.
“Our team looks forward to expanding our network and resources for the benefit of our clients and for our people,” he added.
Benton said the transaction was not part of a succession plan for the current owners, but rather an opportunity for the ownership team to free up more time to work with clients.
“The managers of this business were all still working with clients,” he said. “One of the things that attracted us to this firm is the relatively young group of partners. Nobody is exiting anytime soon.”
Benton declined to disclose details of the transaction beyond that it was structured with a combination of cash and equity.
Captrust has completed 69 acquisitions since 2006.
Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.
From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.
"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.
Chair also praised the passage of stablecoin legislation this week.
Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
