Pathstone, a $15 billion registered investment advisory firm with seven U.S. locations, has sold a significant stake in the firm to private equity firm Lovell Minnick Partners, the same firm that previously owned Mercer Advisors. Fiduciary Network, acquired by Emigrant Bank about a year ago, will exit its investment in Pathstone.
The news reinforces a recent trend, where private equity investors are placing big bets on independent firms.
Under the deal, Pathstone will continue to operate independently, with its management team intact.
“We are grateful for our current financial partners at Fiduciary Network and Emigrant Partners, who had faith in us and believed in our vision five years ago,” said Allan Zachariah, Pathstone’s co-CEO. “They helped guide us through two material acquisitions that propelled the growth of our firm.”
“One of our reasons for investing in Pathstone is our shared commitment to incorporating Environmental, Social, and Governance (ESG) considerations in our investment criteria,” said Brad Armstrong, partner of Lovell Minnick. “We each believe it is additive to performance and beneficial in aligning our investment portfolios with our clients’ values. Inclusive of its legacy firms, Pathstone has been actively investing in sustainable and socially responsible investing strategies for nearly two decades and today has one of the most attractive ESG and impact investing platforms we have seen in the wealth management industry.”