September 20, 2011

Focus Financial Takes Stake in $1.3B RIA Firm Colony Group

Marks fourth transaction this year for rollup firm, raising its total AUM to $45B

Focus Financial Partners, the advisor rollup firm led by CEO Rudy Adolf, said Tuesday that it has added to its partnership The Colony Group, a Boston-based RIA firm with $1.3 billion assets that has offices in two Florida locations and in Washington, D.C. This will be the fourth such transaction this year for Focus, the company said, and once the deal is finalized on Oct. 1, Focus will have $45 billion in assets.

Rudy AdolfA former partner with McKinsey & Co., Adolf (left) cofounded Focus in 2006 with eventual backing from two private equity firms—Summit Partners and Polaris Venture Partners. Among its largest previous investments was St. Louis-based Buckingham Family of Financial Services, a CPA-based RIA firm. Earlier this year, Focus added Pettinga Financial Advisors, an RIA firm with $600 million in AUM based in Evansville, Ind.

Colony was founded in 1986 as a fee-only advisory firm by Kirby Hamilton who, following the close of the transaction and as part of a previously prepared transition plan, will step down as chairman. Afterward, Colony will be managed by a three-member board including CEO and President Michael Nathanson as chairman; Stephen Sadler as president of Colony Wealth Management; and Elisabeth Talbot, executive director and chief market strategist. 

In a statement, Adolf called Colony “one of the best independent investment advisors in the market” and promised that Focus would add “more high-caliber independent, fiduciary-minded advisors in the months and years to come.”  

According to Colony’s Form ADV, the firm has $1.22 billion under management in 1,697 accounts and is registered to conduct business in 20 states. It provides financial planning and wealth management services, investment management and tax planning and preparation services.

Reprints Discuss this story
This is where the comments go.