Emigrant Partners, a new service provider to independent registered investment advisory firms, has invested in a Scottsdale, Ariz.-based RIA with more than $950 million in client assets, the firm said Tuesday. The investment comes several months after the Emigrant Bank subsidiary made its first foray into RIA acquisitions.
The firm is taking a minority stake in AUTUS Asset Management, an RIA founded more than 15 years ago serving high-net-worth individuals and families. In exchange, Emigrant Partners will serve as a strategic consultant to the RIA and provide services and resources, including capital, going forward. Terms of the deal were not disclosed.
“Central to our model is to provide our partner firms with long-term, stable capital and growth support through our strategic guidance and the ability to leverage New York Private Bank & Trust’s extensive network of value-added resources while allowing our partner firms to retain full control over their strategy, investment decisions, and day-to-day operations," said Karl Heckenberg, CEO of Emigrant Partners, a business arm of New York Private Bank & Trust.
Heckenberg is also the president and CEO of Fiduciary Network, a group of 15 RIAs with an average AUM of more than $3 billion, founded by Emigrant Bank in 2007. In 2018, the bank bought out the remaining 25% it didn't already own. He said changes in management and ownership haven't left enough time for Fiduciary Network to onboard new firms — it hasn't made an acquisition in almost two years. But the bank continues to fully support Fiduciary Network and will operate Emigrant Partners alongside it.
Emigrant Partners also acquired a minority stake in NorthRock Partners in April, marking its first partnership with an RIA firm.