JHS Capital Advisors will grow its advisory force by over 75 percent with its purchase of Paulson Investment Company’s retail operations. The deal, announced Wednesday, adds some 75 Paulson advisors, currently managing $1.1 billion in client assets, to JHS’s network of 95 FAs managing $2 billion.
JHS is not looking to be the fastest-growing firm, but the acquisition is part of a slow and steady growth strategy, said Eileen Canady, vice president, strategic development. Canady admits the acquisition would be a big jump in advisor count but she believes the firm has built up enough internal resources to support them. The acquisition would also give JHS a footprint in the Northwest, where Paulson is based. JHS currently operates in 15 states, and will expand that to 21 states with the acquisition.
Paulson was also a good fit culturally, she said. Both firms have similar fixed income and equity trading capabilities. They also both clear through RBC Correspondent Services.
Trent Davis, president and CEO of Paulson, said the deal allows his firm to focus on its specialty—boutique investment banking and trading. Meanwhile, JHS can focus on the retail side. (Paulson has no affiliation to the New York-based hedge fund Paulson & Co.)
JHS is known for being very selective with the advisors it brings on, and the transition will be no different. Each of Paulson’s FAs will have to meet the same hiring standards as others that come on board at JHS, Canady said. Paulson’s advisors have an average production of $150,000 to $225,000.
Terms of the deal were not disclosed, including information on any potential retention packages.