Italian asset manager Azimut Group is set to infuse capital in US-based brokerage firm Sanctuary Wealth, which serves breakaway advisers.
Financial details about the transaction were not shared, other than the fact that the deal involved a “significant equity investment”.
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However, media reports shed light on the financial terms, saying that the deal involved a 55% stake sale by Sanctuary for $50m.
Azimut will execute the deal through its US subsidiary, AZ US Holdings.
The deal, which awaits regulatory approval, is expected to allow Sanctuary to continue investing in its partner firms, and take over other RIAs and wirehouse practices across the country.
Azimut chairman Pietro Giuliani said: “Like Sanctuary, Azimut is fundamentally a growth-oriented company with a long-term vision and partially owned by our advisers and employees which is why we were aligned from day one.
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Sanctuary’s national network consists of 41 partner firms across 17 states. It employs over 100 advisers with $12bn in assets under advisement.
Sanctuary CEO Jim Dickson said: “This transaction provides an unprecedented opportunity for Sanctuary to accelerate our growth.
“The wealth management industry is in the midst of a massive shift as more than 100,000 advisers retire over the next few years, bringing an estimated $1.6 trn of assets into the market. With this strategic backing from Azimut, we are poised to assert ourselves as willing buyers of valuable advisory practices, for Sanctuary and on behalf of our elite adviser network.”
Azimut manages over $67bn in assets and has a presence in 17 countries. The firm forayed into the US market in 2015.
Through Azimut Alternative Capital Partners (AACP), the Milan-based firm acquires minority stakes in US-based alternative asset managers.
In July this year, AACP picked a minority interest in Kennedy Lewis Investment Management – a private credit investment manager based in New York.
