PE-backed Sequoia Financial strikes partnership with Eide Bailly

investmentnews.com:

Sequoia Financial Group has announced a strategic partnership with Eide Bailly, a top 20 US accounting firm, in a move set to significantly enhance both firms’ wealth management services.

Under the agreement, Sequoia Financial will acquire Eide Bailly’s wealth management practice, with Eide Bailly taking an equity stake in Sequoia Financial. The transaction is expected to close in the fourth quarter of 2024.

Eide Bailly Advisors, with approximately $1.58 billion in assets under management as of April 2024, will be integrated into Sequoia Financial Group. This partnership will enable both firms to offer expanded services to their clients, particularly in the western US, where Eide Bailly has a substantial presence.

Sequoia Financial, based in Akron, Ohio, currently manages over $19.3 billion in assets as of June 2024. Since 2020, it’s secured backing from several private equity partners including Kudu Investment Management and Valeas Capital Partners.

“This partnership is a key strategic move that will expand our wealth management footprint meaningfully, especially west of the Mississippi River, where Eide Bailly has a large presence in major wealth markets,” Sequoia Financial CEO Tom Haught said in a statement revealing the deal Wednesday.

Eide Bailly, headquartered in Fargo, North Dakota, has over $700 million in annual revenue and employs more than 3,500 people across 40 offices. The firm’s wealth management services cater to a diverse clientele, including individuals, trusts, estates, businesses, and charitable organizations.

Through the partnership, Eide Bailly’s wealth management team will join Sequoia Financial, which includes Sequoia Sentinel, a multi-family office focusing on high-net-worth clients with assets