Focus Financial invests in $600 million wealth manager

Focus Financial invests in $600 million wealth manager
Deal comes amid slowdown for large investors in financial advisory firms.
APR 05, 2015
Focus Financial Partners, the deep-pocketed investor in financial-advisory businesses, said Monday it has taken a stake in a 45-year-old firm managing $600 million in assets. Under Focus' umbrella, the Savannah, Ga.-based Fiduciary Group plans to add to its ranks of financial advisers and extend its reach in the Southeast,, according to chief executive Malcolm Butler. “I'm advising my clients all the time about estate planning and, in a sense, this is estate planning for the business,” said Mr. Butler. “We have set a structure in place that, for the lifetime that I'm with the firm, we are only going to get stronger. And then, at such a point that I or one of the other principals are no longer working here, we have the structure in place to bring in the next generation of advisers.” The deal took effect last Wednesday. Terms were not disclosed. Focus, founded in 2006, has been an aggressive investor in wealth management firms. Its “partner” firms, in which it takes an ownership stake, now total more than 30, according to a Focus publicist. In addition to working with wealthy individual clients, Fiduciary Group also provides financial advice to company-sponsored retirement plans. The firm employs nine people and has three principal owners, including Mr. Butler. Mr. Butler, 57, who joined the firm in 1980, took over as CEO in 1998. His father, Lee Butler, founded the firm in 1970, according to the firm's website — long before the independent-affiliation business model for financial advisers became fashionable. Focus' deal comes as large investors in the independent-adviser market have apparently slowed their pace of acquisitions. Overall, the number of those deals was flat last year, representing $47.4 billion in assets under management, according to a study released late last month by the Charles Schwab & Co. unit that serves independent-advisers. The custodian tracked 54 deals in 2014, the same as in 2013 and only slightly higher than the nine-year average for the survey. The report only tracks publicly announced transactions. The report found that “aggregators” such as Focus slowed their pace of acquisitions. Those investors, which Schwab calls “strategic acquiring firms,” represented only 38% of deals last year. That figure is down from over half in 2012.

Latest News

Advisor moves: Osaic welcomes Valic veteran in Arizona, Janney hails $3.3B recruiting haul
Advisor moves: Osaic welcomes Valic veteran in Arizona, Janney hails $3.3B recruiting haul

Meanwhile, a father-son pair of advisors and ex-marines from ex-Edward Jones gives Kingsview its newest location in Arkansas.

Why more Americans are raiding their retirement savings for emergencies
Why more Americans are raiding their retirement savings for emergencies

New Vanguard and FINRA data show Americans increasingly vulnerable to financial shocks, with hardship withdrawals and cash-outs reaching a new high.

Retirement plans in flux: Why more Americans are reconsidering their exit timeline
Retirement plans in flux: Why more Americans are reconsidering their exit timeline

Many people have already continued working past their planned retirement date

Married retirees could be in for an $18,100 Social Security cut by 2032, CRFB says
Married retirees could be in for an $18,100 Social Security cut by 2032, CRFB says

A new analysis finds long-running fiscal woes coupled with impacts from the One Big Beautiful Bill Act stand to erode the major pillar for retirement income planning.

SEC bars New Jersey advisor after $9.9M fraud against Gold Star families
SEC bars New Jersey advisor after $9.9M fraud against Gold Star families

Caz Craffy, whom the Department of Justice hit with a 12-year prison term last year for defrauding grieving military families, has been officially exiled from the securities agency.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

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.