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CAPTRUST Wraps Up their 2nd Largest Acquisition

Last week, CAPTRUST closed on a deal to acquire MFP Strategies, located in Bethlehem, Pa., with $5 billion in assets, bringing the firm’s assets under administration to $180 billion with 300 employees in 25 locations.

While mostly working as a RIA, MFP had been clearing through M Financial based in Portland, OR. CAPTRUST’s largest acquisition is Freedom One which included a record keeper and CITs as well as an advisory practice, and they recently made a strategic investment in Pensionmark who moved to CAPTRUST’s BD.

The CAPTRUST model is to buy a firm with 50% in stock as they did with MFP — newly-acquired groups do not run autonomously leveraging and adopting the CAPTRUST business model. Some advisors, especially those still growing at a rapid pace who value their independence, will not be ready for CAPTRUST or other groups like them. But for advisors who have built up a good business are and looking toward succession planning, leveraging the CAPTRUST infrastructure so that they can focus on sales and client interaction could be attractive.

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