Pathstone tops $100 billion with latest acquisition

investmentnews.com:

Private equity-backed Pathstone continues its rapid pace of growth with the announcement that it is acquiring $17 billion multifamily office firm Veritable from Affiliated Managers Group.

The deal, which is expected to close near the end of the third quarter, will push Pathstone’s total assets to over $100 billion, making it one of the largest family offices for ultra-high-net-worth clients in the country.

This marks the third acquisition of the year for Englewood, New Jersey-based Pathstone, which was launched in 2010 when the original eight shareholders spun off from myCFO with $1.4 billion in client assets.

Pathstone, which will add its 19th office when Philadelphia-based Veritable is completely on board, is majority-owned by private equity investors and is on its third round of private equity partnerships.

Matthew Fliessig, Pathstone co-founder and chief executive, said the firm has made 13 acquisitions in 13 years, including four last year, and that the growth has been split evenly between organic and inorganic.

“We had the gas, engine and brakes, but private equity has been the fuel to get us to the next level,” he said. “Private equity has been one of the best things to happen to our business.”

Pathstone was at $4 billion when it entered into its first PE partnership in 2015, Fliessig said. “We will continue to look to expand horizontally and vertically.”

The combination with Veritable will bring together two advisory firms uniquely focused on the wealthiest level of individuals and families.

Veritable has 87 employees and more than 200 clients that average $75 million in assets. They will join 383 employees at Pathstone, where the 500 clients average $140 million under advisement or administration.

Fliessig