Goldstein said Wednesday that CAPTRUST has a long-term goal of growing the firm both organically and through acquisitions.
While its organic growth in gaining and retaining clients is a big focus, CAPTRUST has had done about 39 such strategic transactions since 2006, he said.
“We view the acquisitions as a great opportunity to augment that growth and to bring incredible talent and clients into the family at one time,” Goldstein said.
The industry itself is very broad and involved, he said, adding “there seems to be an industry migration towards firms with a certain scale, and part of that’s because the industry is becoming more significantly impacted by compliance matters, by cybersecurity concerns and the ability to invest in those kinds of technology tools that help you protect your clients. And so, there is a benefit of scale.”
The company has been fortunate over the course of its history to grow to its current scale, he said.
“And I think one of the things we find beneficial with some of the firms that join us is they are seeking the scale and the ability to have more sophisticated tools and techniques,” Goldstein added. “We find more interest in – not so much the scale in having a group like Vinton’s – but just getting incredibly talented advisers and colleagues. In this hiring environment, it’s just challenging to find great talent.”
The acquisition of Fountain Financial Associates is the first closed transaction for CAPTRUST so far this year, Goldstein said, adding "we are highly selective of the firms we choose we bring into the fold."
CAPTRUST does expect more acquisitions in the future, Goldstein said.
The Wilmington location and the client base were an attractive part of Fountain Financial Associates, but above all else, it was the people within the firm and its culture that made it a good fit for CAPTRUST, he said.
The CAPTRUST brand will be taking over the new Wilmington location, in a transition that typically takes three to six months to complete, according to the firm.
Fountain said a big benefit for the firm he founded and its clients going forward is access to CAPTRUST’s people, their knowledge, ideas and innovations.
“Banks and brokerages seem to be big and one size fits all,” he said. “The disruption is independent fiduciary firms that are popping up and creating a business model that is different from the way it used to be done.”
“The future is more about people and advice,” Fountain said, “than it is [about] markets.”
Emma Dill - Nov 27, 2023
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