Focus Financial Partners, which brings together wealth management groups, says it has obtained a $400 million credit line, nearly double the amount it had in 2012. Plus, Focus can obtain an extra $150 million through the credit arrangement, it said early Tuesday, which should help it and its partner firms add to their pipeline of acquisitions this year.
“The marketplace continues to support the success of the Focus model and the trend towards independent wealth management,” explained Focus CEO Rudy Adolf, in a statement. “This past year has been an exceptional one for Focus … We expect robust deal activity in 2014, and this increase in financing allows us to accelerate the growth of Focus and our partner firms.”
In 2013, the New York-based partnership obtained a $216 million minority equity investment from Centerbridge Partners. It also closed 10 Focus and partner-firm deals. The group includes 27 firms with $70 billion in client assets.
“The continued enhancements to our capital structure allow us to concentrate on attracting new partners and supporting the growth of existing ones,” said CFO James Shanahan, in a press release. “Focus shareholders also benefit from the tremendous flexibility and highly attractive rates that this funding creates.”
The $550 million credit facility is available to all Focus partners, who can also rely on the funds and funding partners for help with succession planning, mergers with smaller wealth management firms and business growth.
Some of the banks involved in the credit line are Bank of America (BAC), SunTrust Robinson Humphrey, The Bank of Tokyo Mitsubishi, UFJ, J.P. Morgan (JPM), Fifth Third Bank, U.S. Bank, Huntington Bank, Comerica Bank and TriState Capital Bank.
Check out Advisor M&As to Make Comeback in ’14: Tiburon on ThinkAdvisor.