Captrust Monetary Advisors, the Raleigh, N.C.-headquartered registered funding advisor that surpassed $1 trillion in whole shopper property a couple of months in the past, has acquired Boston Monetary Administration, a Boston-based RIA with practically $5 billion in shopper property. This represents Captrust’s first giant deal this yr and its sixth Massachusetts acquisition since 2019.
This deal additionally takes Captrust to over 100 staff in Massachusetts, now the agency’s third-largest state behind North Carolina and Texas.
Boston Monetary Administration was based in 1976 by Chairman of the Board Richard H. Morse, who will retire as a part of this transaction. It has 45 colleagues throughout its Boston, Cape Cod, Mass. and Portland, Maine areas. The agency is now led by President and CEO Louis Crosier, who will be part of Captrust as principal and monetary advisor.
Crosier stated his agency began the method in January to organize for Morse’s need to exit the enterprise. The agency employed Berkshire World Advisors as its advisor; executives spoke with 23 totally different acquirers and obtained 12 affords.
“The economics have been very comparable. Lots of the choices have been very comparable. And the infrastructure to help the enterprise appeared fairly comparable,” Crosier stated.
What made Captrust stand out was its tradition and shared values when it comes to the way you deal with individuals.
“Our inside motto is, ‘Do nice issues for shoppers and for one another, all else follows.’ And Captrust, a part of the mission assertion is ‘Enrich the lives of shoppers, colleagues, and communities.’ And as trite as it would sound, that alignment was extremely essential for us,” Crosier stated. “Not solely within the phrases, however in going by way of the method, seeing each events stroll the stroll.”
BFM was additionally in search of a development merger, not a synergistic or monetary engineering one. Captrust has distribution avenues that its advisors can faucet into, and Crosier stated the agency may also assist speed up its M&A and recruiting. These distribution channels embody the custodial referral networks, Captrust’s experience with endowments and foundations, and its retirement plan facet of the enterprise.
“I feel a number of avenues for assembly new shoppers, rather more refined information analytics and advertising than now we have at this time, all of which once you put them collectively, ought to speed up development,” he stated.
Captrust grew initially by serving institutional shoppers, reminiscent of retirement plans. Nonetheless, the agency discovered these retirement plan members have been pure shoppers of the wealth administration enterprise. Captrust now serves 3,000 retirement plans across the nation
Wilson Hoyle, managing director at Captrust, stated the agency expects to shut a handful of offers by year-end. The agency has additionally added advisor expertise by way of recruiting, bringing on couple dozen advisors this yr.
This summer season, Captrust introduced it had surpassed $1 trillion in whole property below administration and advisement, a giant milestone for the unbiased RIA channel.
Captrust started an aggressive acquisition technique in 2006 and has since accomplished about 74 offers. Three years in the past, the agency introduced it offered a 25% stake to non-public fairness agency GTCR—primarily based on a valuation of $1.25 billion. Final fall, Captrust offered a minority stake to Carlyle.
