Pathstone, a $55 billion AUM advisory to the family office and foundation set, has agreed to acquire Hall Capital Partners, a $45 billion AUM firm that serves ultra-high-net-worth clients, creating the largest independent RIA focused on the upper echelon of investors, according to a Pathstone press release.
Pathstone, in Englewood, N.J., is a partner-owned firm that advises ultra-high-net-worth families, single family offices, foundations and endowments. The acquisition of Hall Capital, with offices in New York and San Francisco, will expand Pathstone’s footprint in two “sought-after locations,” Pathstone CEO Matt Fleissig said in the release.
“We could not be more excited as we believe our combination represents a seminal moment for our firm, redefining the concept of scale in our industry and accessing a tremendous new group of team members,” he said.
Hall Capital was founded in 1994 by Katie Hall and today advises more than 130 clients who represent some $45 billion in assets. With 180 advisors and staff, the firm’s expertise includes portfolio management, investment research and operations functions, with a primary focus of building and managing large investment portfolios, the release said.
“This combination represents the natural next step for Hall Capital,” said Hall, now co-chair of the firm. The managing partners of the firm are Eric Alt, Sarah Stein and Simon Krinsky.
“From the beginning, we have strived and prided ourselves on our ability to meet the needs of our clients, and we truly believe this combination brings together two complementary organizations who will benefit immensely from collaboration and sharing of resources,” Hall said. “We are thrilled to join the Pathstone family and continue to build on our collective vision.”
With the completion of the acquisition, Pathstone’s total assets under advisement and administration will be nearly $160 billion, and total AUM wil be nearly $100 billion, the release said. The firm will have 23 offices nationwide, and more than 750 team members. Nearly 300 of them will also be shareholders in the firm.
This will be the second acquisition this year for Pathstone; the firm bought $3 billion Crestone Capital, in Boulder, Colo., in February. Pathstone is backed by private equity firms Kelso & Co. and Lovell Minnick Partners, and the firms will be investing additional capital for the Hall Capital transaction, the release said.
