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November 17, 2020

First Western Financial divests LA-based fixed income team

Colorado-based wealth manager First Western Financial has completed the divestment of Los Angeles (LA)-based fixed income portfolio management team (LA fixed income team).

The fixed income team was acquired by Lido Advisors and Oakhurst Advisors along with certain related advisory and sub-advisory arrangements.

The divestment is expected to have a negligible impact on the company’s earnings, as the decrease in revenues will be proportional to the drop in expenses.

However, the move will trim its assets under management by nearly $300m.

First Western CEO Scott C. Wylie said: “The sale of the LA fixed income team represents another important step in our efforts to optimize our cost structure and investment platform, while having a positive impact on our tangible book value per share.

“This transaction frees up capital and management resources that can be used to support the continued growth of more profitable areas of the Company and further enhance the strong earnings momentum that we have built this year.

The LA fixed income team has produced strong investment performance, and our arrangement with Lido Advisors and Oakhurst will continue to provide First Western clients with full access to this team through advisory and sub-advisory relationships.”

The fixed income team will continue to operate from LA serving high net worth and institutional clients. It will also manage the fixed income separate accounts and mutual funds, while some offerings will be rebranded.

Lido Advisors president Jason Ozur said: “With this acquisition, we will be able to significantly enhance our institutional-quality and customized fixed income portfolios for advisors and investors across the US.”

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