Bluespring Wealth Partners, the acquisition arm of Kestra Financial, said Thursday that it has purchased Vector Wealth Management, a $1.1 billion registered investment advisor out of Minneapolis. Kestra, an independent broker/dealer and corporate RIA, launched Bluespring in July in an effort to acquire experienced RIAs and wealth management firms. Terms of the deal were not disclosed.
Bluespring focuses on acquiring firms with succession issues; its only rules are that it must take at least a 51% stake, and it looks only at larger companies with at least $1 million in EBITDA.
This is Bluespring's fourth acquisition in recent months. In late August, it announced it had acquired Hickory Asset Management, with $153 million in client assets, and Believeland, with $400 million in AUM.
“With nearly three decades of serving clients, the team at Vector Wealth Management is high-quality in every way,” said Stuart Silverman, president of Bluespring Wealth Partners, in a press statement. “The firm skillfully integrates life planning into its approach and provides optimal, ongoing client support. Together, we look forward to preserving Vector Wealth Management’s legacy as an industry-leading RIA.”
Vector is led by managing partner Thomas G. Fee, senior wealth advisor Sharon L. Calhoun, director of portfolio management Jason D. Ranallo, senior wealth advisor Tyler J. Schelhaas, portfolio manager Daniel J. Powers, and senior wealth advisor Todd C. Stueve.
“Three central questions drove our search for the right partner,” said Fee in the press statement. “First, does this partnership serve our clients well? Second, will this benefit the next generation of leadership? Third, does this decision help ensure Vector Wealth Management will continue serving our clients for decades to come?”
Kestra has over $90 billion in AUM and supports over 2,000 independent investment advisors. It was recapitalized in February when private equity firm Warburg Pincus became the majority stakeholder in the firm. That deal was rumored to be in the $700 million to $800 million range.