Sanctuary Wealth, the Indianapolis-based partnership of impartial registered funding advisors, will purchase tru Independence, a Portland, Ore.-based RIA help platform that works with 30 corporations managing $12.5 billion in shopper belongings.
As soon as the deal closes, tru will function as a separate entity from Sanctuary, sustaining its model and management staff. The mixed entity will serve 120 wealth administration corporations representing $42 billion of shopper belongings throughout 30 states.
Tru Independence was based in 2014 by CEO Craig Stuvland with the objective of making a brand new service platform aimed toward funding advisors and wealth managers with belongings starting from $300 million to $1 billion. On this mannequin, advisors preserve 100% fairness of their agency whereas counting on Tru for financing, consulting, branding, actual property, distributors, public relations, compliance, and so on. Stuvland was beforehand president and chief working officer of Widespread Sense Funding Administration, a fund of hedge funds.
Since launching 5 years in the past, Sanctuary has grown into one of many nation’s largest pure RIA platforms, primarily by means of the recruitment of wirehouse breakaways. It’s a multi-custodial, hybrid mannequin that has attracted wirehouse advisors who need to go impartial with out having the regulatory obligations of operating an RIA. Previous to the tru acquisition, the agency oversaw round $30 billion in shoppers’ belongings by means of associate corporations in 27 states.
“Sanctuary’s enterprise mannequin traditionally has been to service advisors predominantly within the breakaway house—wirehouse advisors going impartial—however that got here underneath our company RIA and utilized our dealer/vendor,” mentioned Sanctuary CEO Adam Malamed. “Tru Independence is a agency that helps impartial advisors that need to have their very own corporate-regulated entity.”
“That goes to why that is a lot about selection—selection of enterprise mannequin, selection of a multi-custodial platform, the place in each cases, advisors personal 100% of their companies,” Malamed mentioned.
“Individually, each corporations have efficiently attracted top-tier advisors and practices, albeit utilizing barely completely different approaches,” Stuvland mentioned in an announcement. “Collectively, we’re assured top-quintile advisors throughout the wealth administration house will rapidly recognize all the things our expanded enterprise represents and will likely be desperate to reap the benefits of affiliation choices that greatest swimsuit their practices, employees and shoppers.”
Sanctuary makes use of Pershing, Constancy and Schwab for custody, whereas tru makes use of these three along with Goldman Sachs Advisors Options and Raymond James.
Final February, Sanctuary founder Jim Dickson was all of a sudden terminated, with the board of administrators naming Malamed, a member of the board, to exchange him as CEO. On the MarketCounsel Summit in December, Dickson spoke out for the primary time since his departure about his time at Sanctuary and classes realized on the helm of the corporate.
Sanctuary is majority-owned by Azimut Group, a European-based asset administration agency. Final July, Sanctuary introduced it closed on a cope with New York–primarily based Kennedy Lewis Funding Administration, a credit score supervisor, to obtain $175 million in financing within the type of a convertible word.
CityWire first reported that Sanctuary was in talks to amass tru in early March. WealthManagement.com reported in October that Malamed was actively trying to amass firms that compete with Sanctuary.
