Caprock, an SEC-registered multifamily office previously serving about 300 ultra-wealthy families with an average of $30 million invested, has made its first acquisition with the purchase of Grey Street Capital, a 12-person team overseeing about $2.2 billion for 80 clients.
Chicago-based Grey Street, which also has advisors in Arizona, Florida and New Jersey, is adopting Caprock branding in the deal. The combined firms represent more than $11 billion in total assets, about 78% of which is managed.
“This acquisition sets a high bar for finding future partners and demonstrates our commitment to growing organically while maintaining the integrity of the services we provide,” Caprock co-CEO Gregory Brown said in a statement. “We look forward to quickly integrating the Grey Street team into Caprock.”
Taking an endowment-like investment approach, Caprock manages more than $4 billion in private market investments, including private equity, venture capital, real estate and private credit.
“Joining the Caprock team means our advisors and clients will now have access to an even greater toolset,” said Grey Street co-founder and CEO Jay Page. “Just as important, our firms have shared values and a similar, client-first approach to wealth management, a contrast with others who tend to limit themselves to model portfolios filled with liquid assets.”
Caprock’s former head of corporate development, Emily Blue, was an early architect of the Grey Street deal before departing in February to launch her own sell-side advisory firm with a former M&A leader for Focus Financial.
Calling Tuesday’s announcement “fabulous,” Blue said Caprock has historically pursued inorganic growth through lift-outs and recruitment.
“Those take a little longer,” she said. “You’re helping them transition books or grow internally. M&A is the fastest.”
“Whether it’s this acquisition or any future transactions, the most important thing is that the quality of the service our clients experience never gets compromised. Rather, the goal is to enhance it,” said Caprock co-CEO Bill Gilbert.
Founded by a group of its executives in 2005, Caprock is privately held and headquartered in Boise, Idaho, with offices in San Jose and Newport Beach, Calif.; Park City, Utah; Seattle; Austin, Texas; and New York City.