Seattle-based registered funding advisor Coldstream Wealth Administration has merged with Arnerich Massena, a Portland, Ore.-based RIA with about $2 billion in belongings underneath administration. As soon as the deal closes, Coldstream can have $10 billion in consumer belongings.
Arnerich Massena will function as Staff Rae, and all 19 staff, together with seven advisors, will change into shareholders of Coldstream. Together with this transaction, Coldstream has almost doubled in dimension over the past three years with out taking any outdoors capital.
“That’s not been some sort of formidable progress plan to hit some quantity by some date as a result of some spreadsheet informed us to do it from some PE [private equity] agency,” stated Kevin Fitzwilson, Coldstream’s managing shareholder. “It’s been extra so discovering like-minded companions. The market’s been fairly good—outdoors of ’22—for that.”
“We’re taking that path much less traveled of staying actually unbiased—not taking any outdoors capital.”
Based in 1991, Arnerich Massena is an employee-owned agency, led by co-CEOs Reegan Rae and Bryan Shipley, each of which is able to tackle key management roles at Coldstream. The agency offers portfolio administration, funding advisory and family-office companies, equivalent to legacy planning, enterprise exit planning, household governance and generational wealth planning. It has an endowments and foundations observe, and Shipley will lead that mixed enterprise line inside Coldstream.
“Arnerich Massena has a proud historical past and a singular set of values, so the choice to mix with one other agency didn’t come calmly, nor was it one thing that occurred in a single day,” Rae stated in an announcement. “But, after attending to know Kevin and the opposite members of Coldstream’s management staff, it grew to become clear that our two corporations share a typical working construction, enterprise imaginative and prescient and, importantly, a give attention to tradition rooted in service, mental curiosity, and integrity.”
Rae stated her agency was drawn to Coldstream for its further companies, together with tax preparation, property and casualty insurance coverage, funding choices, and profession alternatives it provided her employees. She was additionally impressed with the RIA’s capability to develop and supply fairness possession with out non-public fairness capital.
“Coldstream is sort of this diamond within the tough by way of their mannequin and the truth that they will cling with not solely the publicly traded organizations which might be on the market but in addition the non-public equity-backed teams,” she stated.
This newest deal builds on Coldstream’s northwest enlargement because it seems to construct partnerships all through the West. The agency goals to develop top-line income by 20% yearly, half by mergers and acquisitions and half organically.
In 2021, the agency merged with Mercer Island, Wash.–primarily based Paracle Advisors, an RIA with about $1.4 billion in consumer belongings. Following that, the agency mixed with Rosenbaum Monetary, one other Portland-based agency, in 2021. Final fall, Coldstream merged with Seidman Capital Group, a wealth administration agency, and Hersman Serles Almond, which offers accounting and consulting companies. The 2 Kirkland, Wash.-based affiliated companies have been based by Hersman Managing Associate Victoria Serles.
Final yr, Coldstream introduced in Matt Sonnen as chief working officer to assist with the identification, onboarding and integration of latest corporations.
Established in 1996, Coldstream was partially owned by Boston Non-public for a couple of decade earlier than administration made the choice to purchase out the financial institution in 2011.
