Focus Financial confirms purchase of Joel Isaacson & Co.

Focus Financial Partners LLC, which calls itself “the leading partnership of independent wealth management firms,” confirmed Monday that it is buying a stake in Joel Isaacson & Co. Inc. The deal, the first “acquisition” by the rollup company since July 2008, brings Focus's ownership network to 17 firms with more than $31 billion in client assets. Joel Isaacson, a tax services and advisory firm founded in New York City in 1993, oversees about $1.35 billion in assets for more than 700 clients, according to recent filings. As reported in this week's issue of InvestmentNews, New York-based Focus also is expected to announce a recapitalization, including new cash infusions from two private equity firms and a renegotiated bank credit line and loan. Focus also announced that Polaris Venture Partners and Summit Partners have invested $50 million in the firm and that banks have amended its credit facility with a $30 million "accordion" to further expand the capital structure. As previously reported, Focus has been scurrying to restructure its capital base and secure new financing in the face of diminished cash flow from the registered investment advisers in which it buys majority stakes. Focus seeks new financing . The firm's website said it seeks to buy two to four "quality" firms every year. The banks, led by Bank of America, converted payment due soon on a drawn-down bank line into an amortized term loan. Summit, which in 2006 invested $35 million in Focus, is believed to be taking a subordinated position to Polaris, a new investor, in an attempt to sustain the wealth-management conolidator and avoid writing down its initial investment. "We are excited to increase our commitment and pleased to welcome Polaris as a co-investor,” Kevin Mohan, a Summit managing director, said in a prepared statement. Ruediger 'Rudy' Adolf, Focus' founder and chief executive , added in a prepared statement: “We continue to attract new partner firms and stay committed to investing in the growth of our existing partner firms. This funding provides us with the additional firepower we need to further accelerate our growth in the face of the tremendous opportunity that lies before the RIA industry at this time.”