The deal is an example of the buoyancy of the Dallas/Fort Worth wealth management sector of the US. The acquisition took Beacon Pointe's assets in this market segment to more than $2.0 billion.
California-based Beacon Pointe Advisors has closed its largest acquisition so far, buying Wealthstreet Investment Advisors, an RIA located in Dallas with more than $1.0 billion in client money.
The purchase of the Texan firm takes Beacon Pointe’s assets in the Dallas/Fort Worth market to more than $2.0 billion, a fast-growing market recently chronicled by Family Wealth Report.
The transaction takes Beacon Pointe's total acquired AuM north of $5 billion and total firm-wide assets under administration to about $14.5 billion. Financial terms of the transactions were not disclosed.
Wealthstreet was exclusively represented by Park Sutton Advisors, an investment bank catering to RIAs, the firms said in a statement yesterday.
"The Dallas-Fort Worth Metroplex represents one of the most attractive wealth markets in the country. After establishing a Texas presence in Plano in 2016, we are thrilled to expand our footprint to Dallas proper, The Park Cities and Preston Hollow," Matt Cooper, president of Beacon Pointe Advisors, said.
Wealthstreet, which was founded by Gerald Ray, was originally called Gerald L Ray and Associates and renamed Wealthstreet Investment Advisors in 2017. Joe Ray, Michael Kane, Michael Beck of Wealthstreet will be joining Beacon Pointe as managing directors, and Leslie Reynoso and Lynette Heil will be joining as equity partners.
Ray, JD, son of Gerald L Ray, has more than 30 years of experience in equity and fixed income analysis and portfolio management. He practiced corporate and securities law prior to beginning his career as an investment advisor.
Michael Kane, CFA, has more than 30 years of investment experience and began his professional career as a market marker at the Chicago Board Options Exchange.
Michael Beck brings expertise in advising high net worth individuals and families, business owners, foundations, retirement accounts, and women in transition. He has more than 35 years of experience in the financial industry. Prior to becoming a portfolio manager, he worked in investment banking and private equity.
Leslie Reynoso is a senior wealth advisor working with high net worth clients.
Lynette Heil is Wealthstreet's chief financial officer and chief operating officer. Prior to joining Wealthstreet, she was a director in the Sarbanes Oxley and Financial Consulting Practice of Tatum, LLC, where she worked with PE firms, providing project leadership, and serving as interim CFO for firms in transition.