Adviser Investments, a Boston-based registered funding advisor owned by personal fairness agency Summit Companions, is buying Ropes Wealth Advisors from world regulation agency Ropes & Grey in a deal anticipated to shut this summer time.
The mixture will create an RIA with some $15 billion in consumer belongings and greater than 185 staff. Ropes will add greater than 1,300 shoppers to Adviser’s current roster of practically 4,000, per current Type ADV filings.
“Whereas they deal with a higher-end consumer, they actually have an ultra-high-net-worth clientele,” mentioned Adviser CEO Mario Ramos. “They go about their enterprise mannequin in a really comparable approach, they usually have extra strong capabilities round property planning, trusts, and tax planning with some very succesful and skilled sources we’re very excited to make the most of.
“On the finish of the day, this extremely complementary transaction will assist spherical out our enterprise in order that we are able to serve shoppers all throughout the wealth administration spectrum,” he mentioned.
Based three a long time in the past, Adviser Investments serves households, companies, foundations and establishments. Ropes & Grey established its wealth administration unit in 2012, and the agency serves households, trusts, establishments and charitable organizations. Collectively, they may present monetary, tax and property planning companies, in addition to funding administration in private and non-private markets throughout energetic, passive and tactical methods.
Beforehand a completely owned subsidiary of the worldwide regulation agency Ropes & Grey, Ropes Wealth Advisors will proceed to work from workplaces in Boston’s Prudential Tower and function underneath its current model within the close to time period.
On the identical time, co-chairs of the personal consumer group at Ropes & Grey, Brenda Diana and Martin Corridor, are becoming a member of Adviser’s funding administration staff as chief fiduciary officer and managing director, respectively. Diana and Corridor will proceed to supply authorized companies via a brand new regulation agency, in response to Tuesday’s announcement.
“We’ll proceed to be Ropes & Grey’s most popular supplier of wealth administration companies for shoppers and present and former companions,” mentioned Ramos.
Phrases of the transaction, anticipated to shut by the tip of July, weren’t disclosed, however Ramos mentioned Adviser all the time considers providing fairness “as a matter of philosophy.”
The deal represents Adviser’s fourth acquisition because it took a majority funding from Summit Companions on the finish of 2020. The Ropes staff is becoming a member of on a W-2 foundation, and possession construction will stay unchanged, mentioned Ramos.
“We’re making an attempt to place ourselves as a merger accomplice of alternative for like-minded companies on the market,” he mentioned.
Adviser has a full pipeline of prospects and expects to double AUM over the subsequent three to 5 years.
“However that is extra of a information,” Ramos mentioned. “We wish to be certain we’re combining with the best companies. If we will not discover any merger companions to get to that time, we might not do it, however we predict it is doable.”