Kovitz Investment Group acquires Northern Capital Management

Kovitz Investment Group acquires Northern Capital Management
Kovitz, which pushes beyond $4 billion under managment with its second deal of the year, is part of the network of Focus Financial Partners.
NOV 26, 2018

Chicago-based registered investment adviser Kovitz Investment Group announced Monday it is acquiring Northern Capital Management, a Madison, Wisc. -based RIA with $544 million under management. The deal, which will close early next year, marks the second acquisition of the year for Kovitz, which has grown to more than $4 billion since its founding in 2003. In August, Kovitz announced its acquisition of AFAM Capital, which has approximately $1 billion under management. eals represent sub-acquisitions for Focus Financial Partners (FOCS), which raised $565 million through an initial public stock sale in July. During both of Focus' earnings calls since going public, chairman and chief executive officer Rudy Adolf said there are about 500 suitable RIA partner firms that could potentially join the 60 firms now making up Focus' partner network. Regarding the latest Kovitz deal, Mr. Adolf said, "With our M&A expertise and value-added program, we expect continued excellence from the Kovitz team." "As I recently mentioned, Focus is working on more opportunities than in any other time I can remember," he added. "We anticipate having a number of similar announcements in the weeks ahead." Year to date, Focus has closed eight direct transactions and 16 mergers by partner firms.

Latest News

Fintech bytes: Envestnet reaffirms $1B RIA commitment with Tamarac tech investment
Fintech bytes: Envestnet reaffirms $1B RIA commitment with Tamarac tech investment

Also, Orion has added BlackRock, Fidelity, and Vanguard to its custom portfolios suite, and RedBlack has set up a new headquarters after crossing a trillion-dollar milestone.

RIA moves: Maridea acquires multigenerational practice in Pennsylvania debut
RIA moves: Maridea acquires multigenerational practice in Pennsylvania debut

Also, New York-based Legacy Edge Advisors names its first-ever CEO, while Novare Capital Management hires a Vanguard veteran with a multigenerational planning focus.

Private equity eyes 401(k) plans, but fees remain a hurdle
Private equity eyes 401(k) plans, but fees remain a hurdle

Asset managers are racing to bring private market products to retirement plans, but cost and liquidity concerns linger.

IRS floats proposal ending tax breaks for schools that weigh race
IRS floats proposal ending tax breaks for schools that weigh race

Treasury's latest tax-exemption crackdown on private schools lands in the wake of a separate push to restrict refundable credits for some immigrant filers.

Trust over tech:  The hidden signal of stock success in the AI era
Trust over tech: The hidden signal of stock success in the AI era

Workforce trust measures predicted which companies came out ahead during COVID-19. The same dynamic may now be playing out across the AI transition — and the data suggests the spread could be just as wide.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income