Arax adds $9B with Texas acquisition

investmentnews.com:

Arax has just taken a massive step to expand its wealth management capabilities with a deal in Texas. The wealth firm announced the incorporation of U.S. Capital Wealth Advisors, a step that elevates Arax’s assets under management to more than $16 billion.

A Houston-headquartered independent wealth firm, U.S. Capitol West Advisors manages around $9 billion in assets, servicing over 5,500 clients with a team of 62 advisors.

This merger is expected to significantly enrich Arax’s service offerings, incorporating comprehensive financial planning, investment, and insurance solutions for high-net-worth and ultra-high-net-worth clients.

With a strong operational base in major Texas cities such as Houston, Austin, Dallas, and Georgetown, as well as in New York City and Massachusetts, USCWA is poised to make a substantial contribution to Arax.

Arax’s boutique wealth platform, which is backed by RedBird Capital Partners, has grown into a business encompassing 120 advisors and more than 12,000 clients.

“USCWA was founded on the same principles as Arax, enabling financial advisors to provide expert, holistic solutions to clients that combine the personal touch of a regional firm with capabilities available to larger, national institutions,” Arax CEO Haig Ariyan said in a statement.

Ariyan expects the marriage of a multicustodial advisory platform with USCWA’s broker-dealer will generate better opportunities and advisors and clients within the Arax enterprise.

Emerging from a strategic merger between U.S. Capital Advisors and Legacy One Financial in 2021, USCWA will retain its branding and continue its core advisory and client-facing operations as an integral part of the Arax platform.

The firm’s co-managing partner, Pat Mendenhall,