Seattle-based registered funding advisor Coldstream Wealth Administration has merged with Arnerich Massena, a Portland, Ore.-based RIA with about $2 billion in belongings below administration. As soon as the deal closes, Coldstream could have $10 billion in consumer belongings.
Arnerich Massena will function as Workforce Rae, and all 19 staff, together with seven advisors, will turn into shareholders of Coldstream. Together with this transaction, Coldstream has almost doubled in dimension during the last three years with out taking any exterior capital.
“That’s not been some form of formidable development plan to hit some quantity by some date as a result of some spreadsheet advised us to do it from some PE [private equity] agency,” mentioned Kevin Fitzwilson, Coldstream’s managing shareholder. “It’s been extra so discovering like-minded companions. The market’s been fairly good—exterior of ’22—for that.”
“We’re taking that path much less traveled of staying actually unbiased—not taking any exterior 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 providers, similar to legacy planning, enterprise exit planning, household governance and generational wealth planning. It has an endowments and foundations apply, and Shipley will lead that mixed enterprise line inside Coldstream.
“Arnerich Massena has a proud historical past and a novel set of values, so the choice to mix with one other agency didn’t come evenly, nor was it one thing that occurred in a single day,” Rae mentioned 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 companies share a typical working construction, enterprise imaginative and prescient and, importantly, a give attention to tradition rooted in service, mental curiosity, and integrity.”
Rae mentioned her agency was drawn to Coldstream for its extra providers, 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 skill to develop and supply fairness possession with out non-public fairness capital.
“Coldstream is form of this diamond within the tough when it comes to their mannequin and the truth that they will hold with not solely the publicly traded organizations which might be on the market but additionally the non-public equity-backed teams,” she mentioned.
This newest deal builds on Coldstream’s northwest enlargement because it appears to be like to construct partnerships all through the West. The agency goals to develop top-line income by 20% yearly, half by means of mergers and acquisitions and half organically.
In 2021, the agency merged with Mercer Island, Wash.–based mostly 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 providers. The 2 Kirkland, Wash.-based affiliated companies have been based by Hersman Managing Accomplice Victoria Serles.
Final yr, Coldstream introduced in Matt Sonnen as chief working officer to assist with the identification, onboarding and integration of latest companies.
Established in 1996, Coldstream was partially owned by Boston Personal for a few decade earlier than administration made the choice to purchase out the financial institution in 2011.
