Pathstone asserts UHNW dominance in mega-deal for $45B Hall Capital Partners

Pathstone, a partner-owned advisory firm known for its investment and family office services, has announced it will acquire Hall Capital Partners, a San Francisco- and New York-based investment advisory firm.

The move announced Wednesday strengthens the Englewood, New Jersey-based firm's presence in the ultra-high-net-worth advisory space and significantly expands its national footprint.

It dwarfs an earlier deal Pathstone announced in February, where it acquired Crestone Capital, a $3 billion wealth management firm based in Colorado, as well as its landmark acquisition of $17 billion multifamily office firm Veritable from Affiliated Managers Group last year.

Founded in 1994 by Katie Hall, Hall Capital has established itself as a prominent player in managing large portfolios for UHNW families, endowments, and foundations. The firm advises over 130 clients, representing around $45 billion in assets. Hall Capital’s team of 180 professionals, specializing in portfolio management, investment research, and operations, will join Pathstone as part of the transaction.

“We have been a long-time admirer of Hall as one of the most respected, long-standing firms in our industry, and we believe that combining the best of our respective organizations creates a truly unique value proposition,” Matt Fleissig, CEO of Pathstone said in a statement. “We could not be more excited as we believe our combination represents a seminal moment for our firm, redefining the concept of scale in our industry.”

Hall Capital’s leadership, including managing partners Eric Alt, Sarah Stein, and Simon Krinsky, also expressed enthusiasm for the partnership.

“Pathstone’s services are differentiated and serve as a natural complement to our research and portfolio management capabilities,” they stated jointly. “Together we believe we can deliver something unparalleled in the market and continue to meet the evolving needs of our complex clients.”

The acquisition brings Pathstone’s total assets under advisement and administration to nearly $160 billion, while vaulting its AUM close to the $100 billion mark. Post-transaction, its operational footprint will encompass 23 offices coast to coast with over 750 employees, including nearly 300 shareholders.

Alongside its own management, Pathstone said its strategic PE backers, Kelso & Company and Lovell Minnick Partners, will be contributing additional capital to support the acquisition.

Katie Hall, co-founder and co-chair of Hall Capital, said the alliance marks "the next natural step" for her firm, emphasizing the "collective vision" it shared with Pathstone.

“From the beginning, we have strived to meet the needs of our clients, and we truly believe this combination brings together two complementary organizations who will benefit immensely from collaboration and sharing of resources,” she said.

Shedding some perspective on the deal, Allen Darby, CEO of Alaris Acquisitions, said that while Pathstone is "still very small compared to the larger wirehouses," the transaction stands as proof "that liquidity is available for shareholders of these larger enterprises created in recent years."

"This not only paves the way for the next generation of firms aiming to replicate that success, but it also bodes well for shareholders of smaller firms with exceptional leadership and proven execution track records," Darby said in an emailed statement.