Cresset, a $72 billion registered funding advisor primarily based in Chicago, introduced plans to merge with Monticello Associates, an employee-owned institutional consulting agency with $124 billion in property beneath advisement.
The deal, anticipated to shut later this yr, provides to Cresset’s institutional advisory capabilities and brings the RIA’s complete property to almost $200 billion.
Denver-based Monticello was based in 1992 by Grady Durham and serves 175 shoppers, together with foundations, endowments and household workplaces. All the Monticello crew, which includes 58 crew members, will be part of Cresset. Along with Denver, the agency additionally has workplaces in Cleveland, Boston and Washington, D.C.
Monticello will proceed to function as an unbiased model, led by Durham.
Susie Cranston, president of Cresset, stated the mix of the 2 companies will profit shoppers on either side who might have a necessity for brand new capabilities.
“Possibly one among Monticello’s shopper’s funding committees personally would love some help, they usually’re searching for an introduction,” she stated. “Or, it may very well be that a few of the household workplaces that Monticello serves want some augmentation in some space that they don’t present providers in. Equally, on Cresset’s aspect, we have now fairly a number of shoppers that serve on completely different endowments, foundations boards, they usually want funding consulting experience.”
Over the past a number of years, many within the RIA enterprise have made concerted efforts to serve the institutional market. For instance, one of many greatest RIAs within the nation, Mariner Wealth Advisors, acquired two institutional consulting companies, AndCo Consulting and Fourth Road Efficiency Companions, final yr, including $104 billion in property and 100 workers.
Late final yr, Hightower took a majority curiosity in NEPC, an institutional consulting agency and outsourced chief funding officer (OCIO). And SageView Advisory Group, a California-based registered funding advisory agency, just lately acquired CAP STRAT, an Oakbrook Terrace, In poor health.-based institutional retirement plan consulting and wealth administration agency with $25 billion in property.
“It is a pattern that you will note proceed as our enterprise strikes ahead, because the business strikes ahead, as a result of it’s such a implausible manner for shoppers to be higher served, for capabilities to be added to all sides,” Cranston stated.
Cresset was based by Eric Becker and Stein in 2017 to handle their very own households’ property. The duo got here out of the non-public fairness world, and the agency has targeted on bringing non-public placements to its rich shoppers. It serves high-net-worth shoppers, together with entrepreneurs, CEOs and executives, in addition to multigenerational households. Cresset supplies boutique household workplace providers, customized wealth administration, non-public investing alternatives and a group targeted on peer-to-peer studying.
Late final yr, Cresset bought a minority stake to Constellation Wealth Capital, the non-public fairness firm created by former Emigrant Companions CEO Karl Heckenberg to put money into the rising RIA channel.
