Cohen & Company, a tax and financial advisory business for businesses and high net worth clients, has sold a stake in the company to private equity firm Lovell Minnick Partners.
The investment comes a day later LMP bought a majority stake in Americana Partnersa Houston-based RIA and member of the Dynasty Financial Partners network.
Cohen & Company is a nationwide insurance, tax and business advisory firm, working in the mutual funds, private equity, alternative investment and real estate industries, while specializing in serving businesses, family offices and HNW individuals.
It was founded in 1977 and now has more than 800 employees across the country. It has 12 offices in Illinois, Ohio, Maryland, Michigan, New York, Pennsylvania and Wisconsin and affiliated entities in Ireland and the Cayman Islands.
According to the firm, the investment will be used to expand its technology and services. CEO Chris Bellamy said the firm was driven to “work harder than ever” as it entered this “new chapter”.
“LMP will be a valuable strategic partner, providing a unique perspective on our industry and the clients we serve, along with a dedicated focus on human capital, which is central to our growth strategy as an employer of choice ,” Bellamy said.
The deal is expected to close on December 31 and Cohen & Co. will “significantly increase” the number of employees holding equity; That, combined with “significant reserves for future equity-based incentives,” will help the firm achieve its strategic goals, Bellamy said.
After the deal closes, the firm will split (although both parties will continue to operate under the Cohen & Company brand name). Cohen & Company, Ltd. will be a licensed CPA firm providing attestation services led by Vince Curttright. Bellamy will lead Cohen & Co. Advisory, providing business, tax and advisory services.
Hunton Andrews Kurth and Sidley Austin served as legal advisors to Cohen & Company and LMP, respectively.
On Thursday, LMP announced it made a majority investment in Americana Partners, becoming the firm's first owner outside of its founders and management team. Americana's management team will continue to lead the firm, while executives and employees will remain significant owners.
A group of Breakaway Morgan Stanley founded Americana in 2019making it the largest team to join the Dynasty. The group started with seven advisors in three offices in Texas and has grown to $8.5 billion in assets under management.
LMP was founded in 1999 and primarily works with high-growth, mid-market companies, focusing on financial and business services and fintech firms. Current holdings include Pathstone, OneZero Financial and STP Investment Services. It previously held stakes in Mercer Advisors, Foreside and AssetMark.