Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Industry Spotlight > Broker Dealers

Focus Financial Obtains $1B for Growth

Your article was successfully shared with the contacts you provided.

Focus Financial Partners said Friday it nearly doubled its credit facility to $1 billion to further support its growth plans. Bank of America, SunTrust, J.P. Morgan, Citizens Bank, U.S. Bank and other financial groups are extending the funds to the wealth-management partnership.

“Focus has continued its upward trajectory in 2015 with high deal volume and strong momentum. The upsizing demonstrates the strength of our business model, the sustainability of our economic model and the scale of opportunities ahead,” said Rudy Adolf, founder and CEO, in a statement. “The credit facility further enhances our balance sheet, and aligns with our plans to support our existing partner firms.”

The $1 billion credit facility is available to all Focus partners, according the company. It also will be used to fund the Focus Connections program, which helps elite brokers from the wirehouses set up independent RIAs, and Focus Successions, which assists sole practitioners to implement succession plans.

“The upsizing represents an increase of 82% since December 2013 and now includes 12 financial institutions in the syndicate of lenders. We are delighted that the Focus model is well recognized by the industry leaders,” said James Shanahan, CFO of Focus Financial Partners, in a statement.

“This expanded credit facility increases our capacity for supporting our partner firms’ business growth and M&A activities,” Shanahan said.

In the past year, Focus says it has added seven new partner firms and affiliates, including its first Canadian partner firm. In addition, Focus has completed several merger transactions for its partner firms.

In early 2014, Focus Financial announced that it obtained a $400 million credit line, nearly double the amount it had in 2012, plus access to an additional $150 million. A year earlier, the New York-based partnership obtained a $216 million minority equity investment from Centerbridge Partners.

In May, the group hired several individuals for leadership roles in mergers and acquisitions, finance, legal and compliance, and marketing. The group of new execs includes Justin Ferri, Eric Amar, Molly Bennard, Scott Holsopple and Sukanya Kuruganti.

Founded in 2006, Focus Financial has more than $325 million in annual revenue. It currently includes 35 partner firms.

— Check out Merrill, Securities America & Commonwealth Add Reps From Rivals on ThinkAdvisor.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.