Focus Financial Partners, the company headed by Rudy Adolf that has put together a partnership of wealth management firms across the U.S. and in the U.K., has increased its capital for future RIA partnership ventures via a $50 million commitment in growth capital from two venture capital firms--Polaris Venture Partners and Summit Partners.
As a result, Focus Financial Partners said it has extended its bank credit facility by $30 million that will provides Focus, in CEO Adolf's prepared announcement, "with the additional firepower we need to further accelerate our growth in the face of the tremendous opportunity that lies before the RIA industry at this time."
Focus Financial said it would use the added capital not only to acquire additional wealth management firms, but also to support growth for its partners in the areas of recruiting and sub-acquisitions, and marketing and business development.
Summit Partners, a VC and private equity firm, was an initial backer of Focus at its launch in January 2006 when it pledged $35 million; other financial services companies in its portfolio are Options Xpress and the Mutual Fund Store.
Earlier this year, Focus Financial launched a service called "Connections" to help wirehouse brokers form independent RIA firms .