Kovitz Investment Group Partners, one of the “hub” firms in which Focus Financial is moving towards consolidation the remaining partners in its network, has taken another step in this direction.
Kovitz has agreed to acquire Fort Pitt Capital Group, a Pittsburgh-based Focus partner firm with $5.9 billion in client assets. The deal, expected to close in the fourth quarter of 2024, will bring Kovitz's assets to nearly $30 billion.
Focus previously acquired Kovitz's management team to turn it into a “hub” firm that acquires other Focus partner RIAs. Mitch Kovitz, CEO of Kovitz, became vice president of Focus in January. In April, it was Michael Nathanson, CEO of Colony Group, another Focus center appointed CEO of Focus.
Fort Pitt was founded in 1995 by Theodore Bovard, the current CEO of RIA. Kovitz will be joined by RIA's management team and advisors. The firm joined the Focus partnership in 2015. In 2019, Focus facilitated the under-acquisition of Fort Pitt of Harrisburg, Pa.-based Roofing Advisory Group.
“Since 1995, our team has grown tremendously for both the employees we support and the clients we are fortunate to serve,” Bovard said in a statement. “Joining Kovitz will be the latest milestone in our ongoing mission to expand and enhance our capabilities, which will enable us to better meet the complex and evolving needs of our customers.”
When Clayton, Dubilier & Rice bought Focus last year, the firm's three founders left, including former CEO 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).
Recently, Kovitz bought Relative Value Partners (RVP) Group, a Focus firm based in Northbrook, Ill., managing more than $2.5 billion in assets as of March 2024. In April, RIA agreed to acquire Strategic Wealth Partners Groupa Focus firm one hour north of its Chicago headquarters in Deerfield, Ill. In May, Focus merged 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.
In June, Focus shifted from Connectus Wealth Advisors US-based lines of business for The Colony Group and Kovitz Investment Group Partners. Colony Group added Atlas Private Wealth Management, Connectus Private, Hunt Valley Wealth, Mid-Continent Capital and NEIRG Wealth Management. Focus moved Greenwich, Connecticut-based NorthCoast Asset Management line of business to Kovitz.
Earlier in the year, Focus also merged Colony and GW & Wadea Wellesley, Mass.-based RIA with $10.4 billion in client assets.