Focus Financial Partners, the New York-based RIA aggregator, is continuing to consolidate by moving the business lines of US-based Connectus Wealth Advisers to The Colony Group and Kovitz Investment Group Partners
The five business lines joining Colony from Connectus include Atlas Private Wealth Management, Connectus Private, Hunt Valley Wealth, Mid-Continent Capital and NEIRG Wealth Management. The move will add “top-tier” talent to Colony and strengthen its footprint in several markets, including Baltimore, Chicago and South Florida.
Colony president Zinovy Iosovich said the firm was excited to welcome Connectus' “experienced and talented” teams.
Additionally, Focus revealed it was moving Connectus's Greenwich, Conn.-based NorthCoast Asset Management line of business to Kovitz, another massive Focus firm. Connectus acquired NorthAsset for $3 billion in September 2021, making it the tenth RIA firm at the time.
NorthCoast Managing Director and Chief Investment Officer Patrick Jamin said the firm was excited to join forces with Kovitz, as both firms specialize in portfolio construction and investment research.
Mitch Kovitz is the founder and co-chief investment officer of Kovitz, a $7.68 billion AUM RIA based in Chicago. Focus previously acquired the management teams of Colony and Kovitz to turn them into “hub” firms that acquire other Focus partner RIAs. Kovitz became vice president of Focus in January and shared Jamin's enthusiasm for the deal.
“They have a particular excellence in providing investment solutions designed for clients with concentrated equity positions, which is an increasingly necessary tool for our clients who are corporate executives,” said Kovitz.
Connectus managed about $8.5 billion in client assets, according to its March 2024 Form ADV.
In late April, Focus named Michael Nathanson, the firm's current president and CEO of Colony Group, as its new CEO. He succeeded interim head Dan Glaser, chairman of Focus' board of directors and operating partner at Clayton, Dubilier & Rice, Focus' lead private equity investment partner.
When CD&R bought Focus last year, the firm's three founders left, including former COO Rajini Kodialam, former head of M&A Lenny Chang and CEO Rudy Adolf, who left in October. Under new owners, The focus is planned to merge approximately 90 independently owned subsidiary practices at some of its largest firms (including Colony and Kovitz).
In May, Focus brought together partner firm Buckingham Strategic Wealth with The Colony Group to create a $50.2 billion RIA. Buckingham chairman and CEO Adam Birenbaum became CEO of the combined company, while Nathanson moved from his role leading Colony Group to chief executive of Focus.
Earlier in the year, Focus merged Colony and GW & Wadea Wellesley, Mass.-based RIA with $10.4 billion in client assets.