Stanhope Capital Group and FWM Holdings have agreed to combine their businesses in a deal that would result in the formation of a $24.2bn wealth manager.
Financial terms of the deal, which is expected to conclude early next year, were not shared.
The unified entity
FWM management will be entitled to get Stanhope Capital shares as part of the consideration.
Following the merger, Stanhope Capital and FWM will run as a single entity for all purposes, mainly for investment research and strategy. However, they will retain their existing names under the Stanhope Capital Group umbrella.
The unified company will have an expanded reach in the US and Europe, with 135 employees in six offices across the globe.
Stanhope Capital founder Daniel Pinto will serve as the chairman and CEO of the merged business upon deal completion.
Pinto noted that the merger will provide an investment platform for clients to combine “liquid, well-diversified portfolios” with opportunities in private equity, real estate and hedge funds.
FWM founder Keith Bloomfield will continue as the CEO and oversee the firm’s US businesses. He will be part of Stanhope Capital’s executive committee and serve as vice chairman of its board of directors.
Speaking on the merger, Bloomfield said: “As well as increasing our geographic scope, the merger will further enhance the combined firms’ investment capabilities in both public and private markets, with clients benefitting from local access to investment opportunities sourced by dedicated teams based in several of the world’s top financial centres.”
About the companies
Founded in 2004 by Pinto, Stanhope Capital offers wealth management, investment consulting, private investments and merchant banking services and manages $13bn for private clients, endowments, charities and other institutions worldwide.
The firm has a workforce of 85 people across its offices in London, Geneva, and Paris.
FWM is the parent of Forbes Family Trust, LGL Partners and Optima Fund Management.
Established by Keith Bloomfield in 2009, FWM oversees $11.2bn for ultra-high net worth family offices and individuals, foundations, and endowments mainly based in the US.
The firm has offices in New York City, Philadelphia, and Palm Beach and employs 50 people.
FWM, which acquired New York-based hedge fund specialist Optima Fund Management last year, also specialises in alternative assets.