Focus Financial Partners, LLC, a partnership of independent wealth management firms, has reached a definitive agreement with Centerbridge Capital Partners for an investment of $216 million. Following the anticipated close in the 3(rd) quarter, Focus partners and management will continue to retain a majority of their ownership in the company. Similarly, the early investors in Focus, Summit Partners and Polaris Ventures, will remain shareholders.
Rudy Adolf, founder and CEO of Focus, said: "The independent, RIA industry is a growing $3.2 trillion market that continues to attract fiduciary-minded wealth managers. As a market leader, Focus is excited about Centerbridge’s investment in the company as it further validates our model and the growth potential of our company and the industry as a whole. This investment adds to our deep pool of available capital as we continue to work closely with our partner firms to support their own growth initiatives. Most importantly, Centerbridge’s investment creates liquidity for many of our shareholders at an attractive return."
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Matthew Kabaker, senior managing director at Centerbridge, said: "Focus is a proven leader in the independent wealth management industry. Since the founding of the business in 2006, Focus has assembled an exceptional group of partner firms across the country dedicated to providing independent, high-quality advice to their clients. Consistent with other investments Centerbridge has made in market-leading businesses and industry consolidators across various industries, Focus has a strong track record, first-class management team, and a well-developed infrastructure which position it for further expansion. We are pleased to have the opportunity to partner with Focus management, its partner firms, and existing capital providers, Summit Partners and Polaris Ventures, in the next stage of their growth."
"As one of the 2006 founding partner firms in Focus, I have continuously benefitted from the Focus platform," says Bob Kresek, principal and wealth advisor at Buckingham Asset Management in Cupertino, CA. "Focus enabled me to dramatically grow my original business, Founders Financial Network, culminating in our merger with Buckingham. Focus continues to help us constantly improve and expand our businesses to the benefit of our clients, partners and employees. I am proud to have been affiliated with Focus since the very start."
Focus was founded in 2006 with $3.5 billion in client assets. Over the past six and a half years, Focus has grown rapidly, adding established RIA teams as well as wirehouse teams with significant assets under management to its partnership. In the past year, Focus executed 10 transactions and increased client assets by $14 billion. Now, with approximately $62 billion in client assets and over $250 million in revenue, Focus is one of the largest and most profitable firms in the industry.
Vinson & Elkins LLP provided legal advice to Focus. Centerbridge was advised by Paul, Weiss, Rifkind, Wharton & Garrison LLP.
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