California’s financial advisory firm Allworth Financial has agreed to buy Tucson, Arizona-based Pathways Financial Partners, marking its third partnership in the Southwest US.
Details about the transaction
The deal adds around $158m in assets to Allworth’s books, increasing its total assets to more than $9.5bn.
The deal, whose financial terms were not shared, is anticipated to wrap up later this year.
The acquisition of Pathways is Allworth’s 11th deal since private equity firm Parthenon Capital’s majority stake acquisition in the business in 2017.
Recently, Parthenon agreed to sell its stake to private equity firm Lightyear Capital and Ontario Teachers’ Pension Plan Board.
Allworth’s leadership and advisers will retain a significant ownership position in the business upon deal completion.
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Commenting on the takeover, Allworth co-CEO Pat McClain said: “With the addition of Pathways, we’re one step closer to fulfilling on our mission to build a national firm that is a respected leader in the marketplace.
“Arizona is a market that we’ve wanted to be in for quite some time and we’re extremely pleased that we were able to find such a great firm to partner with there.”
Both Allworth and Pathways offer similar services.
Allworth focuses on retirement planning, investment advising, and 401(k) management. Previously operating under the name Hanson McClain Advisors, Allworth rebranded in 2019.
Pathways too focuses on investing and retirement planning for individuals and families. It also serves businesses sponsoring 401(k) plans.
Pathways president and founder Brian Murphy said: “Allworth’s model of providing straightforward fiduciary investment management and retirement planning advice appealed to us right from the start.”
In May 2020, Allworth snapped up Ohio-based Capstone Capital with nearly $100m in client assets.
Earlier this year, Allworth added around $450m through the acquisition of Houston Asset Management.