Arax Investment Partners, a wealth management platform backed by private equity firm RedBird Capital Partners, has acquired U.S. Capital Wealth Advisors, a hybrid broker/dealer and registered investment advisor with $9 billion in total assets across 5,500 clients and 62 advisors.
The firm, headquartered in Houston, will operate as a distinct brand on Arax’s platform and not be merged into any of its other entities. In addition to Houston, it also has offices in Austin, Dallas and Georgetown, Texas, as well New York and Massachusetts.
U.S. Capital Wealth Advisors was created in 2021 when U.S. Capital Advisors, co-founded by Pat Mendenhall and Dave King, merged with Legacy One Financial, a Merchant Investment Management–backed RIA in Austin led by Jim Fortescue.
Over the last several months, Arax has been building a name for itself in the wealth management M&A space. Earlier this year, it acquired Excel Securities & Associates, a Rochester, N.Y.-based IBD and RIA with $1 billion in client assets. That firm now operates as Ashton Thomas Securities, borrowing the name from an RIA Arax acquired last year, Ashton Thomas Private Wealth.
Arax announced in March that Ashton Thomas Securities would continue to use Pershing for clearing and custody. The firm considers this a new relationship with Pershing, one that most likely will grow into a larger one as Arax continues to acquire and scale its wealth management business. Arax has relationships with Schwab Institutional, NFS, and Fidelity Brokerage Services for the bulk of its custody and clearing needs.
Arax now has 120 advisors serving over 12,000 clients across more than $16 billion in assets under management and advisement.