Clearstead Advisors, a Cleveland, Ohio-based registered funding advisor serving high-net-worth and institutional purchasers, has acquired Avalon Belief, a wealth administration agency primarily based in Santa Fe, N.M., with further workplaces in Ridgewood, N.J., and Portland, Ore. The acquisition provides to Clearstead’s belief capabilities, and represents its second deal since personal fairness agency Flexpoint Ford invested within the RIA in February 2022.
Clearstead initially acquired into the belief enterprise when it acquired Atlantic Belief in 2021, which has since been rebranded as Clearstead Belief.
Phrases of the deal weren’t disclosed, however Avalon and Clearstead Belief are working as wholly owned subsidiaries of the agency. Avalon will retain its present branding within the close to time period, with a Clearstead callout.
The agency at the moment lacks a nationwide belief constitution, limiting these companies to the geographies wherein its corporations are chartered. However Clearstead CEO Dave Fulton stated he expects to proceed constructing out the providing over time.
“We haven’t actually developed a cogent technique round that but,” he stated, “However we contemplate it a very nice enterprise.”
Avalon provides $2 billion to Clearstead, bringing its complete consumer property to roughly $28 billion. Clearstead supplies purchasers and multi-generational households with a complete suite of companies, together with wealth administration, belief, tax planning, various investments and household workplace administration.
Avalon affords custom-made funding administration, belief, household workplace administration and monetary planning companies to people, households, trusts, non-profits and foundations. Comprising 13 staff, the agency is managed by Andrew Wallerstein, Christine McDermott and Julia Peters, all of whom will proceed as companions and senior leaders underneath Clearstead. The deal will give the crew entry to a 21-person tax division, various investments and different complementary companies at Clearstead.
“Partnering with Clearstead helps us develop our sources and strengthen companies for our purchasers,” Wallerstein stated in an announcement. “By becoming a member of Clearstead, our subsequent era of crew members can have extra alternatives to develop and guarantee we’re capable of work with our purchasers for a few years to return.”
The eighth acquisition in Clearstead’s 34-year historical past, Avalon expands the agency’s presence within the Southwest.
Because the agency continues to develop with personal fairness help, Fulton stated extra M&A bulletins are to be anticipated however declined to share any particulars, aside from noting a deal with the bigger Cleveland space, the place the agency is headquartered, and sure different enticing nationwide markets.
“We’re not simply shopping for something,” he stated. “We’re shopping for high-quality, impartial wealth administration corporations the place the house owners need to turn out to be companions with us in constructing a bigger agency.”
The deal furthers Clearstead’s aim to offer “excessive web price households throughout the US a holistic and differentiated wealth administration providing,” he stated. “Specifically, Avalon’s deal with consumer values aligns with our Sustainable Clearstead initiatives.”
The agency’s sustainable initiatives embody exclusionary, integration, thematic and market fee influence investing choices, primarily based on analysis and testing. These are provided alongside training, objectives alignment and actionable funding methods.
With greater than 130 staff, almost two-thirds of whom are companions on the agency, Clearstead is rising persistently at an natural fee of round 10%, greater than twice the business common.
District Capital Companions served as monetary advisor to Clearstead on the transaction, whereas Colchester Companions suggested Avalon on the deal.