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Thursday, February 16, 2023

Sequoia Monetary Group to Purchase Zeke Capital Advisors

Sequoia Monetary Group has entered into an settlement to accumulate Zeke Capital Advisors, a multi-family workplace with round $5 billion in ultra-high-net-worth belongings, funding administration chops and a location on the East Coast.  

The deal, anticipated to shut on the finish of the month, will carry Sequoia to greater than $15 billion in consumer belongings.

Situated in Berwyn, Penn., Zeke has been led for greater than 15 years by veteran fund supervisor Edward Antoian. He based the agency in 2008, following 26 years as companion at Chartwell Funding Companions and 12 as a portfolio supervisor for Delaware Investments. President Gee Smith joined as a companion in 2013, after greater than 12 years with Goldman Sachs Belief Firm, together with seven as its CEO.

In response to the agency’s newest SEC submitting (in August 2022), Zeke oversees practically $5 billion in belongings for round 100 extremely excessive web price purchasers and greater than $1.2 billion held in pooled funding autos. The acquisition will successfully double each the belongings and variety of consumer households beneath Sequoia’s household workplace observe, whereas increasing funding choices for your entire agency.

Zeke actually has a really sturdy asset administration staff that can add breadth and depth to our asset administration staff,” mentioned Sequoia CEO Tom Haught. “They’re going to play a vital function in our future progress collectively. We’re each very enthusiastic about this chance.”

Akron, Ohio-based Sequoia gives asset administration and monetary planning providers to purchasers spanning the wealth spectrum by way of a tiered service mannequin. Based by Haught in 1991, the agency at present oversees greater than $10 billion in belongings throughout all three consumer tiers and has greater than 180 staff in workplaces in Ohio, Michigan, South Carolina and Florida.

“We spent that first decade making an attempt to determine what we wished to be once we grew up,” Haught informed WealthManagement.com in October after the employee-owned agency secured its second minority funding, from Valeas Capital. The subsequent twenty years have been about constructing his staff and embarking upon a dual-track progress technique. During the last decade, he mentioned Sequoia has grown its high line by 15% organically and by as a lot as 25% by way of M&A.

After a handful of smaller acquisitions, the agency obtained its first minority funding from Kudu Funding Administration in 2020 and adopted up with two massive offers that added round $4 billion in belongings the subsequent 12 months—prompting David DeVoe, the founding father of M&A consulting agency DeVoe & Firm, to say it was considered one of “about 25 main companies that can form the RIA trade over the subsequent 5 years.”

Going ahead, Haught mentioned he nonetheless expects so as to add about two companies a 12 months and is keen to increase into new geographical areas, whereas persevering with so as to add expertise and experience augmenting all three service areas.  

The newest acquisition, as an illustration, will add a “extremely credentialed” analysis staff and a long time of expertise offering distinctive funding alternatives that Haught is keen to leverage.

“Zeke is actually sturdy on options,” he mentioned. “Direct non-public investments, non-public credit score, non-public actual property. And we’ll be capable to provide these throughout all our present purchasers on a broader funding platform.”

The agency may even proceed trying into including trustee providers, he mentioned, bolstered by the inflow of latest belongings and Smith’s expertise.

Zeke will start working beneath the Sequoia model on March 1. Antoian and Smith will stay actively concerned with the agency, in accordance with Haught. Antoian will concentrate on his precedence, asset administration, whereas Smith will use the chance to spend extra time with purchasers.

Phrases of the deal weren’t disclosed.  

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