February 24, 2022
Citywire recently spoke with Rosemont to discuss its purchase of a minority stake in Veris Wealth Partners, a San Francisco-based impact investing-focused RIA with about $2 billion in client assets under management.
“The RIA works with ultra-wealthy families and family foundations with assets between $25 million – $100 million looking to make socially conscious investments,” the publication reports. Rosemont currently backs three asset managers and one other RIA. Veris is Rosemont’s second permanent investment.
“This is perfect for the new strategy of the permanent investments,” Rosemont managing director Brad Mook said of Veris. “They wanted to take on a partner that they knew would be with them well into the future so they don’t have to think about a future transaction. It allows them to know that they’re going to remain independent and employee-owned and focused on their mission and not have any competing agendas that could potentially dilute or interfere with their mission.”
Click here to read the entire article.
February 15, 2022
Increasingly, investors are seeking alignment between their investment portfolios and their personal values. Yet, with the flood of assets into ESG investments, it is now more challenging than ever to decipher between authentic opportunities to do well while doing good and those that are simply greenwashed. In the premiere episode of Rosemont’s Global Investment Leaders podcast, Rosemont CEO Chas Burkhart speaks with Veris Wealth Partners CEO Stephanie Cohn Rupp about the future of ESG and impact investing.
Drawing on her 20+ years of impact investing experience in the U.S., Europe and frontier markets, Cohn Rupp shares her insights on:
- The evolution of investors’ mindsets from keeping investing and philanthropy separate to now recognizing the interplay of business and social good
- The need for female representation in the wealth management industry and solutions for both individuals and organizations seeking to advance women’s influence
- Future regulation around reporting of ESG factors and how the U.S. compares to other countries in its standardization of ESG metrics
- How Veris invests through the four themes of climate solutions and the environment, sustainable and regenerative agriculture, racial and gender equity, and community wealth building
- The process Veris uses to evaluate an investment through both the financial lens and the impact lens to identify the best opportunities for financial and social gain
Additionally, Cohn Rupp and Burkhart discuss Rosemont’s recent investment in Veris. With succession planning as a pillar of the firm’s success, Veris sought out an investment partner with a long-term, permanent capital approach and industry expertise to help the firm grow and deepen its impact.
All episodes of the Global Investment Leaders podcast are available on Apple Podcasts, Spotify, Google Podcasts and more. Receive the episodes as soon as they premiere by subscribing today.
Important Information:
This content is provided for educational purposes only, represents only a summary of topics discussed, does not constitute any personalized investment advice or recommendation, and represents only the views and opinions of the speakers which are subject to change without notice. Information is provided as of the date represented herein and is subject to change without notice. The authors do not undertake any responsibility to update the information contained herein in the event that any such change occurs.
Certain descriptions contained herein (including, without limitation, descriptions pertaining to Veris Wealth Partners’ processes, methodologies, strategies, etc.) are provided for illustrative purposes only. Given the variation in services provided and different needs of the firm’s clients and other parties with whom it does business, variations may exist from the descriptions provided in this document which are not described herein. Any specific references to specific recommended investments or managers is provided for illustrative purposes only, and no inferences should be drawn as to the success or performance of such managers or investments.
Past performance is not indicative or a guarantee of future results. Investing involves numerous risks, including the potential loss of all amounts invested.
February 8, 2022
Investment Supports Partner Succession and Ongoing Independence
Conshohocken, PA, February 8, 2022 – Rosemont, a private investor in employee-owned asset and wealth management firms, announces a minority investment in Veris Wealth Partners, a majority employee-owned and women-led impact wealth management firm with more than $2 billion in assets under management. The recapitalization is designed to support the company’s internal equity transition to next-generation leaders and to ensure its independence for many years to come. Importantly, there will be no changes to the day-to-day management of the firm as a result of the transaction.
Veris Wealth Partners builds customized, diversified portfolios for its clients that focus on creating social and environmental impact in specific thematic areas, while also striving to meet its clients’ financial and lifestyle goals. The firm’s current impact themes are Climate Solutions and the Environment, Sustainable and Regenerative Agriculture, Racial and Gender Equity, and Community Wealth Building.
“We are extremely pleased to partner with Veris,” said Brad Mook, Managing Director at Rosemont. “Veris has a long legacy as a leader in impact investing since 2007 and is distinguished by its authenticity and strong partnership culture. It’s a compelling choice for wealth owners looking for high-caliber investment management and private wealth planning and the ability to use their resources for positive change. We look forward to working with the Veris team long into the future.”
“Rosemont is the ideal partner for Veris,” said Stephanie Cohn Rupp, Partner and CEO of Veris Wealth Partners. “The ability to remain majority employee-owned and women-led is a priority for us, and Rosemont’s minority and patient-capital ownership model guarantees Veris will control its own destiny well into the future. Moreover, as experienced wealth management specialists, they will help us grow sustainably and remain at the forefront of impact investing.”
This is the second permanent capital investment by Rosemont, following 27 private equity investments over the past 21 years.
Cozen O’Connor served as legal representative to Rosemont and Lipsey Law served as legal representative to Veris Wealth Partners.
Terms of the transaction were not disclosed.
About Rosemont
Rosemont is a specialist investor exclusively focused on a select number of partnerships with high-quality, employee-owned asset and wealth management companies. Rosemont acquires permanent minority equity positions in support of management buyouts, recapitalizations, ownership transitions, and selected start-ups. In addition to its experience providing capital and employee-driven ownership solutions, Rosemont leverages its deep network and knowledge of the investment management industry developed through more than 30 years of advising and investing in asset and wealth management businesses. For more information visit www.rosemontinv.com.
About Veris Wealth Partners
Veris Wealth Partners, LLC is one of the nation’s leading impact wealth management firms founded in 2007. Veris helps individuals, families and private foundations achieve their financial objectives, while aligning their wealth with their values. The Veris team believes that investment performance and positive impact are complementary parts of a holistic investment strategy. A Certified B Corp, Veris Wealth Partners has been named a “Best for the World” company by B Lab every year since 2013. Veris has offices in San Francisco, New York, Portsmouth, and Boulder. For more information visit www.veriswp.com.
February 3, 2022
Rosemont Investment Group has been featured in Pensions & Investments Q4 2021 money manager M&A activity report for the sale of its minority stake in Clearstead Advisors. According to the publication, this sale was one of thirty-two deals taking place in our industry throughout the quarter in total.
“Clearstead has developed into one of the premier investment advisory and wealth management firms in the country,” Rosemont Managing Director Brad Mook said regarding the sale in a previous press release. “It is well-structured and positioned to continue to grow and serve its clients at a very high level, and we are proud to have helped as its strategic partner over the past four years. We would have happily continued as Clearstead’s partner indefinitely if not for our legacy PE fund structure.”
Click here to read the entire Pensions & Investments report.
January 20, 2022
By Chas Burkhart
One of the third rails in any discussion about employee-owned investment companies and succession is the topic of nepotism. Family-owned investment firms are essentially as old as the industry itself, going back to JP Morgan, Rockefeller and the many companies that were founded by men who ultimately passed on the reins to their sons. And while the father/son combination remains the most prevalent form, we see other combinations as well (Abby Johnson at Fidelity being one prominent father/daughter example). It’s natural for a principal owner to want to pass down such a material asset that they nurtured and benefited from, but we would argue that any firm—particularly smaller ones—are not being commercially minded when family members become entitled to leadership positions. If handled correctly—essentially meaning without entitlement—it can be a powerful transition tool. If handled poorly, however, it can mean the beginning of the end.
The issue is often best considered from a non-family leaders’ perspective: is the family member earning their keep? Are they the best person for the job? Do they feel they can be as honest and straightforward with them as any other colleague? For too many firms, family-driven succession (and family ownership blocks, such as husband/wife, children’s trusts, etc.) is simply not considered that way. The perspective is more the founders/owner’s mentality: “This is my firm to run how I see fit, and my family is entitled to the job or the opportunity because I own it and it’s my prerogative.” I smile as I write this, for I’m often asked by industry colleagues whether my daughter—a young investment banker—will ultimately join me at Rosemont and take over the business. The simple answer? It never crossed my mind. She’s far too young and inexperienced, and if my team didn’t support it, I wouldn’t force it anyway. How could I justify it is in the best interest of Rosemont?
Nonetheless, some leaders see a family handoff as the best option. And while we can all likely recall some cases where it went horribly wrong, there are a number of lesser-known cases that have gone very well. Several firms have navigated the nepotism gauntlet well, and the beneficiaries— the spouse, child, cousin, etc.— tended to have the following in common: they work as hard or harder than anyone else, are every bit as qualified as any other candidate, and bring a prove-it attitude to work every day – this isn’t the University of Entitlement. Several successful Rosemont investments have had aspects of nepotism and met these criteria, such as Westmount Asset Management (a wealth management firm in Los Angeles) and Southern Sun Asset Management (a small cap equity manager in Memphis). 1607 Capital Partners, a closed-end fund investment firm in Richmond and one of our current investments, successfully navigated it as well. Among the founders were father and son Fred and Kirk Tattersall; as Fred ultimately stepped down over the years, Kirk proved an excellent business and marketing leader, and the remaining partner chemistry was consistently strong.
To be fair, though, nepotism success stories are rare. Having observed a few thousand investment firms over more than 35 years, I’ve seen far more failure than success and noted a consistent formula in those that worked. Successful nepotism requires leaders to bring their family members along, with mentoring and full engagement as with any other employee and ensure the family members deserve the equity and position to the degree contemplated. Most importantly, pretty much everyone else at the firm should agree it’s a great work dynamic and they really respect their family colleague. There is your standard.
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