New York-based Steward Companions World Advisory is buying Freedom Road Companions, a Chesapeake, Va.-based community of 38 unbiased monetary advisors that handle about $3.2 billion in shopper belongings.
The Freedom Road group would be the cornerstone of a brand new division, stated an organization assertion—one which caters to advisors who search to promote their observe.
“The acquisition marks the institution of a brand new ‘owned enterprise’ division at Steward Companions,” the corporate assertion stated, “offering extra capability for development and making a automobile for advisors seeking to promote their enterprise to Steward Companions.”
Phrases of the settlement weren’t disclosed, however Steward Companions will purchase Freedom Road’s whole wealth administration enterprise, which incorporates shopper belongings and a community of advisors, along with Freedom Road’s administration group and employees.
Steward Companions is an employee-owned unbiased RIA. When the deal closes—anticipated earlier than yr’s finish—Freedom Road advisors will grow to be fairness companions in addition to staff or associates of Steward Companions by means of the agency’s Washington, D.C., location, and they are going to be utilizing Raymond James as their dealer.
Even earlier than the acquisition is full, although, Steward Companions had practically $28 billion in shopper belongings. Begun in 2016 with 17 areas within the mid-Atlantic, Southeast, and Midwest areas, it at present has 36 places of work, 205 advisors, and 408 companions.
“This new division permits us to broaden our enterprise mannequin, and we consider it will likely be a key element of our future development, attracting a brand new phase of advisors,” stated Steward Companions CEO James Gold, in a press release. “The acquisition of Freedom Road Companions’s wealth administration enterprise is a vital step in increasing our already profitable enterprise and, as we welcome our new companions to the Steward Companions household, we are going to work with them to proceed to construct this enticing alternative.”
Freedom Road was began seven years in the past. Scott Danner, its CEO, stated in a press release that he expects the acquisition will “assist gas the already enticing development we have now been capable of create.” He hopes to leverage Steward Companions’s “deep assets and experience within the wealth advisory area.” He cited its skilled management group, development tradition, and complicated backend know-how among the many benefits it brings to the merger.
“The addition of Freedom Road Companions as the muse of our new Freedom Road Division creates a brand new, precious, high-growth enterprise phase at Steward Companions,” stated Hy Saporta, president, COO, and cofounder of Steward Companions, in a press release. “We’ve got had excessive demand from advisors and wealth administration corporations contemplating a transition from their present conditions,” he added. Freedom Road, he stated, is “utterly aligned” with Steward Companions’s tradition.
Steward Companions was suggested by Eversheds Sutherland. Freedom Road was suggested by STS Capital Companions, with Walter Haverfield as authorized counsel.