MAI Capital will acquire Ownership Advisors Inc. (OAI), a Cleveland, Ohio–based registered investment advisor with approximately $120 million in assets under management, according to an announcement. MAI manages over $10 billion in client assets.
The acquisition is expected to close in the second quarter. Details were not disclosed.
OAI will help MAI build on its presence in the Cleveland area after it acquired HW Financial Advisors in January. OAI will also supplement MAI Capital's wealth management capabilities with intergenerational wealth transfer strategies and legacy planning.
Rick Buoncore, managing partner at MAI, and OAI President Mark Van Drunen said they entered into the agreement because they recognized a good cultural fit.
OAI is MAI’s 11th acquisition since selling a minority investment to private equity firm Wealth Partners Capital Group in 2017 shortly after the PE firm spun off from Affiliated Managers Group. WPCG launched with minority investments in MAI, EP Wealth and the Forbes Family Trust.
“Deal activity among wealth managers continues to be incredibly strong in 1Q 2021,” said Brian Lauzon, managing director of investment bank and consulting firm InCap Group. “Between the current RIA valuation environment and a likely increase in capital gains tax in 2022, potential sellers seem motivated to begin the process now so that they can consummate a deal this calendar year.”
David DeVoe, founder and CEO of DeVoe & Company, an RIA consulting firm, said the first quarter already had a record number of RIA acquisitions with 33 transactions.
“This transaction will push the Q1 record number higher,” he said.