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November 25, 2020

Stanhope Capital and FWM to form $24.2bn wealth manager via merger

By Amala Johney

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.

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Analyze opportunies within the wealth management market in APAC

GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
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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.

Free Report
img

Analyze opportunies within the wealth management market in APAC

GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
Enter your details here to receive your free Report.

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