Newport Beach-based Beacon Pointe Financial Advisors LLC last week got a new minority investor from Boston and now plans an aggressive expansion plan for its financial services offerings.
“We’re in 15 offices now and we’d like to expand that to 50 offices in the next several years,” Chief Executive Shannon Eusey told the Business Journal.
Beacon Pointe, which Eusey started in 2002 with her father, Garth Flint, has grown to more than $11.5 billion in assets under management with acquisitions and organic growth. Beacon Pointe is the largest female-owned registered investment advisory firm in the country.
The company chose Boston-based Abry Partners LLC because it will become a minority, not majority, investor and they have a lot of experience in making acquisitions, Eusey said.
Financial terms weren’t disclosed. Generally, Abry targets investments in the $20 million to $200 million range.
Abry, founded in 1989, has completed more than $82 billion of leveraged transactions and other private equity placements. It has more than $5 billion in capital across its active funds.
“They are wicked smart,” said Eusey, who is often ranked among the top RIAs in the country, of the Boston investors.
“In an industry that is extremely competitive, it’s allowing us to make continued expansion.”
It’s the second notable Orange County finance-related investment for Abry in as many years.
Last August, it said it was buying Lake Forest’s Portfolio Holding Inc., an independent provider of finance and insurance products and services to automotive dealers.
Florida Entry
Beacon Pointe last week also bought Winter Park, Fla.-based Ferrell Wealth Management Inc., adding more than $460 million of assets under management.
“It’s our first time in Florida,” Eusey said. “It’s a great organization and great team. Their investment acumen is very strong.”
Eusey said Beacon Pointe won’t be going the route of its Newport Beach neighbor United Capital Financial Partners Inc., which was founded in 2005 and was sold for $750 million last May to Goldman Sachs Group Inc. (NYSE: GS).
Joe Duran’s United Capital had roughly $25 billion in assets under management at the time of its sale.
“We’re not looking to do that for the organization,” Eusey said. “We want to continue running our own business.”
Beacon Pointe has clients with assets ranging from $2 million to $100 million. The firm offers its more than 4,000 clients financial planning and investment strategies such as allocation of assets and which funds to invest in. It also provides retirement plan advice to businesses and consulting services for institutions, as well as partners with independent advisers.
Abry’s investment will permit Beacon Pointe, which has more than 160 employees, to improve its marketing, investment research and technology.
Beacon Pointe in December said it’s raising $30 million for its own real estate fund of funds, designed for clients who typically don’t meet the minimum required to access private real estate funds.
The company also formally merged Beacon Pointe Advisors LLC and Beacon Pointe Wealth Advisors LLC, which handled its acquisitions, into a single registered investment adviser called Beacon Pointe Advisors.
“It simplifies some of the things we’re doing internally,” Eusey said.
