US-based Coldstream Wealth Management has agreed to buy Portland-based Rosenbaum Financial as part of a strategy to bolster its presence in the Pacific Northwest.
Financial terms of the deal were not disclosed.
Rosenbaum caters to high-net-worth (HNW) families and individuals, business owners, widowed or divorced women, and institutions. It manages approximately $463m in assets.
The acquisition will take Coldstream’s total client assets to more than $6.7bn. The combined entity will have 30 financial advisors and 112 employees.
The deal is part of Coldstream’s strategy to expand the business under its employee ownership model.
In May this year, the firm purchased Seattle-based RIA Paracle Advisors, which manages over $1.4bn.
Commenting on the deal, Coldstream managing shareholder Kevin Fitzwilson said: “In combining with Rosenbaum Financial, we have once again demonstrated how it is possible to build a thriving wealth management business without having to rely on private equity dollars and private equity agendas.
“We proudly bring a contrarian view to the current M&A environment, which assumes that private equity roll-up consolidation is the inevitable future of our industry.”
Under the terms of the agreement, Rosenbaum will operate under the Coldstream brand.
The Rosenbaum, whose employees will be retained, will be led by the firm CEO and president Mark Rosenbaum as a relationship manager.
Rosenbaum said: “We are excited to take the next step in the evolution of our business by merging with Coldstream.
“After meeting with numerous potential partners for the future, we were disenchanted with many who seemed solely focused on maximising profits, a stark contrast to Kevin and his team, whose emphasis on delivering a great client experience and cultivating a strong internal culture was more in lockstep with our own beliefs.”
Founded in 1996, Coldstream provides wealth management, insurance and financial planning services to HNW clients.
Its recent acquisition includes the takeover of The Rainier Group.