North Carolina-based RIA Captrust Financial Advisors has acquired Phoenix-based MRA Associates, which oversees $3.29bn in assets.
Financial terms of the deal have not been revealed.
Established in 1991, MRA offers investment advisory, wealth management, and tax consulting to private clients as well as institutions.
The 59-person firm is led by managing partner and CEO Mark Feldman and the executive leadership team consisting of Brad Lemon, Christina Burroughs, and Mike Hirte.
Commenting on the deal, Feldman said: “The decision to join Captrust was an easy one once we understood the considerable level of scale we would be plugging into. I believe all of our clients will benefit greatly from the depth of the firm’s investment capabilities, as well as their institutional capacity and leverage.”
As part of the transaction, MRA’s locations in Phoenix, Las Vegas, and Wayzata, Minnesota will assume Captrust’s name and branding.
New Service Offering: Tax Consulting
The purchase of MRA bolsters the Captrust portfolio with the addition of the tax consulting service.
The company will be now able to offer income and estate tax compliance and consulting services for individuals, families, trusts, and similar closely held operating businesses.
Additionally, the deal expands Captrust’s presence in the southwest region, which according to the company’s senior director for strategic growth Rush Benton, has long been a target market for the firm.
Benton said: “When MRA came along, we were impressed not only by the sophistication of their tax offering, but also by their ability to integrate their tax planning into their holistic wealth management process.”
Fuelling growth through M&A
Founded in 1997, Captrust specialises in investment advisory, investment management, and planning services.
The firm has been active in the M&A space since 2006 and has executed 44 deals so far.
The company managed $50bn in assets under management and $409bn in assets under advisement as of September 30, 2020. It has over 730 employees across 49 locations across the US.
Last June, Chicago-based private equity firm GTCR picked a 25% interest in Captrust.