Pathstone, a partner-owned and private equity–backed registered investment advisory firm providing investment advice and family office services on more than $35 billion in client assets for families, foundations and endowments, announced it has entered into an agreement to acquire Dyson Capital Advisors.
Based in Alexandria, Va., Dyson was founded in 2007 by Nicholas Perrins and Scott Darling, with Sarb Shah joining as a partner in 2013. Dyson oversees $3.5 billion in mostly nondiscretionary assets for approximately 80 clients, the vast majority of whom are ultra-high-net-worth individuals.
The firms were introduced by clients almost a decade ago, according to Pathstone CEO Matthew Fleissig.
"We were impressed then by Dyson's business, leadership and forward-thinking view of the industry—and how well it aligned with our strategic plan,” he said in a statement. “We are thrilled at the opportunity to finally bring our two firms together and, importantly, to continue to strengthen our presence in our current office locations.”
Pathstone and Dyson, which will combine to become one of the largest RIAs in the Washington, D.C., metro area, both said they are “well aligned in terms of philosophy and strategy.” The two firms have pursued a strategy focused on developing financial solutions for the wealthiest families and were early to join the industrywide trend of offering additional services such as accounting, bill pay, financial administration and wealth planning.
Dyson clients will now gain access to all Pathstone services, including financial education, ESG and impact investing initiatives.
"We are thrilled to be joining with long-time friends in the industry who share our collective vision," said Perrins, Dyson's managing director. "It is fitting that clients brought us together, and as one firm our ability to serve those clients will be taken to the next level. The combined firms' scale will benefit both organizations' clients by delivering greater access to value-added client solutions."
"Each time Pathstone has combined with another firm, it has been about getting better and not just bigger," added Pathstone President Kelly Maregni. "As with our other transactions, there is a lot we can learn from Dyson. Their focus on private investments, client solutions, technology and alternatives made this particularly interesting for Pathstone."
This is the third acquisition Pathstone, backed by private equity firm Lovell Minnick Partners since 2019, has made in 2022. In May, the firm acquired direct indexer Advisor Partners, with $1.9 billion in assets. In March, Pathstone bought a $3 billion portion of Eaton Vance WaterOak Advisors from Morgan Stanley.
The Dyson acquisition will bring Pathstone's total assets under advisement to around $38 billion. Based in Englewood, N.J., Pathstone will now have 14 locations with 295 team members, more than 115 of whom are shareholders of the firm.