Tiedemann Wealth Management is merging with Presidio Capital Advisors, a deal that stands out in the registered investment adviser industry for its large size.
Tiedemann, based in New York, oversees $9 billion in assets, while San Francisco-based Presidio has about $4 billion, according to
a joint company statement Monday. Terms of the agreement weren't disclosed.
Dealmaking in the RIA industry is
continuing at a strong pace after setting records in the past two years. The merger with Presidio positions Tiedemann with a long-term succession plan by giving it the scale and resources needed to re-invest in the business and its junior partners, according to Michael Tiedemann, chief executive of the firm.
“We are adding greatly to our investment team and depth of talent,” said Mr. Tiedemann, 45. “There's no question that the market we are in, to a large degree, requires that there be a presence on the ground.”
Mr. Tiedemann will be CEO of the combined business. The firm will operate under the Tiedemann brand, with offices in Dallas, Palm Beach, Wilmington, Del., and Washington, D.C., as well as New York and San Francisco.
Mr. Tiedemann said the deal with Presidio should be completed by the end of next month. He declined to comment on the equity ownership structure of the combined business, saying only that the 32 operating partners across both firms will be invested in it.
There's been a spike this year in the
number of mergers and acquisitions involving large RIAs with $1 billion to $5 billion in assets, according to consulting firm DeVoe & Co. The Presidio deal is the 13th in this range this year, up 50% from the historical average, according to David DeVoe, the consulting firm's founder. He said the segment represents 17% of all M&A transactions in the RIA industry this year.
Presidio Capital Advisors is the wealth advisory firm unit of Presidio Group, which also has an investment banking business, according to its website. Presidio Group's founder and CEO, Brodie Cobb, will join Tiedemann's board of directors as part of the deal.
“This partnership enables us to provide our clients with deeper and expanded investment,
estate planning and
trust resources and services,” Mr. Cobb said in the statement.
Tiedemann was founded in 1999 by Carl Tiedemann, who served as president of storied investment banking and brokerage firm Donaldson, Lufkin & Jenrette from 1975 to 1980. He died April 30 at age 89, according to the firm's website.
