Pathstone, a private equity-backed multifamily office based in Englewood, NJ, has signed an agreement to acquire Hall Capital Partners, a long-term, bicoastal registered investment advisor with $45 billion in client assets. The combination will create an RIA with approximately $160 billion in assets under advice and administration and $100 billion in assets under management.
Pathstone will now have a national footprint with 23 offices across the country and over 750 team members, nearly 300 of whom are equity shareholders. The addition of Hall Capital also gives it a stronger base in New York and San Francisco, where the firm is based.
Hall Capital was founded in 1994 by Katie Hall, who now serves as co-chairman. It has 180 team members serving 130 clients, which include families, foundations and ultra-high net worth foundations. The firm has long been considered a pioneer in the independent investment advisor space and is currently owned by the management team.
“This combination represents the natural next step for Hall Capital,” Hall said in a statement. “Since the beginning, we have strived for and pride ourselves on our ability to meet the needs of our customers, and we truly believe that this combination brings together two complementary organizations that will greatly benefit from collaboration and sharing of resources.”
“We have been a long-time admirer of Hall as one of the most respected and oldest firms in our industry and we believe that the best combination of our respective organizations creates a truly unique value proposition,” said the CEO. of Pathstone, Matt Fleissig. in a statement. “We couldn't be more excited as we believe our combination represents a pivotal moment for our firm, redefining the concept of scale in our industry and entering an incredible new set of team members and two sought-after locations – San Francisco and New York. “
Pathstone has carved a path for itself in the RIA space, growing from $16 billion in AUA in 2019 to nearly $160 billion today.
The RIA employee ownership model was introduced at the end of 2019, after a initial investment from Lovell Minnick Partners at a time when Pathstone claimed close to $15 billion in assets.
At the beginning of last yearMiddle market private equity firm Kelso & Company has joined LMP as a Pathstone investor, prompting LMP investment banker Peter Nesvold of Republic Capital Group to state that the firm has become a “buyer of choice in the UHNW market “.
Both private equity firms will provide additional capital to support the acquisition of Hall Capital.
Hall Capital used UBS Securities to advise on the deal, while Ardea Partners advised Pathstone on the transaction.