Saturday, December 2, 2023

Clearstead Advisors Bolsters Belief Capabilities with Avalon Belief

Clearstead Advisors, a Cleveland, Ohio-based registered funding advisor serving high-net-worth and institutional shoppers, 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 non-public fairness agency Flexpoint Ford invested within the RIA in February 2022.

Clearstead initially bought 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 whole shopper belongings to roughly $28 billion. Clearstead supplies shoppers and multi-generational households with a complete suite of companies, together with wealth administration, belief, tax planning, different investments and household workplace administration.

Avalon presents 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 group entry to a 21-person tax division, different investments and different complementary companies at Clearstead.

“Partnering with Clearstead helps us broaden our assets and strengthen companies for our shoppers,” Wallerstein stated in an announcement. “By becoming a member of Clearstead, our subsequent era of group members can have extra alternatives to develop and guarantee we’re capable of work with our shoppers 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 non-public fairness help, Fulton stated extra M&A bulletins are to be anticipated however declined to share any particulars, apart from noting a concentrate on 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 homeowners need to change into companions with us in constructing a bigger agency.”

The deal furthers Clearstead’s purpose to supply “excessive internet price households throughout america a holistic and differentiated wealth administration providing,” he stated. “Specifically, Avalon’s concentrate on shopper values aligns with our Sustainable Clearstead initiatives.” 

The agency’s sustainable initiatives embody exclusionary, integration, thematic and market fee impression investing choices, primarily based on analysis and testing. These are supplied alongside schooling, 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 trade common.

District Capital Companions served as monetary advisor to Clearstead on the transaction, whereas Colchester Companions suggested Avalon on the deal.

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