Sanctuary Wealth, the Indianapolis-based partnership of independent registered investment advisers, will acquire Tru Independence, a Portland, Ore.-based RIA support platform. which works with 30 firms managing $12.5 billion in client assets.
Once the deal closes, tru will operate as a separate entity from Sanctuary, retaining its brand and management team. The combined entity will serve 120 wealth management firms representing $42 billion in client assets in 30 states.
It was true independence founded in 2014 by CEO Craig Stuvland with the aim of creating a new service platform aimed at investment advisors and wealth managers with assets ranging from $300 million to $1 billion. In this model, advisors hold 100% equity in their firm while relying on Tru for financing, consulting, branding, real estate, vendors, public relations, compliance, etc. Stuvland was previously president and chief operating officer of Common Sense Investment Management, a fund of hedge funds.
Since launching five years ago, Sanctuary has grown into one of the country's largest pure-play RIA platforms, primarily through the recruitment of wiretaps. It's a hybrid multi-custodial model that has attracted office advisors who want to go independent without the regulatory responsibilities of running an RIA. Prior to the actual acquisition, the firm oversaw approximately $30 billion in client assets through partner firms in 27 countries.
“Sanctuary's business model has historically been to serve advisors primarily in the breakaway space — wire advisors going independent — but this was put under our corporate RIA and used our broker/dealer,” said Sanctuary CEO Adam Malamed. “Tru Independence is a firm that supports independent advisers who want to have their own corporately regulated entity.”
“That goes to why this is so much about choice — choosing the business model, choosing a multi-custodial platform, where in both cases, advisers own 100% of their businesses,” Malamed said.
Separately, both firms have successfully attracted top-tier advisors and practices, albeit using slightly different approaches, Stuvland said in a statement. “Together, we are confident that top-tier advisors in the wealth management space will quickly appreciate all that our expanded enterprise represents and will be eager to take advantage of the membership options that best suit their practices, staff and their customers.”
Sanctuary uses Pershing, Fidelity and Schwab for custody, while tru uses these three in addition to Goldman Sachs Advisors Solutions and Raymond James.
Last February, Sanctuary founder Jim Dickson was abruptly terminated, with the board of directors appointing Malamed, a board member, to replace him as CEO. At the Market Council Summit in December, Dixon spoke for the first time since leaving about his time at Sanctuary and the lessons learned at the helm of the company.
Sanctuary is majority owned by Azimut Group, an asset management firm based in Europe. Last July, Sanctuary announced it closed a deal with New York-based Kennedy Lewis Investment Management, a credit manager, to obtain $175 million in financing in the form of a convertible note.
CityWire first reported that Sanctuary was in talks to buy Brain in early March. WealthManagement.com reported in October that Malamed was actively seeking to acquire companies that compete with Sanctuary.