April 29, 2024
In an exclusive interview with CityWire, a leading wealth management-focused publication, Rosemont discussed the sale of its stake in Wilbanks Smith & Thomas Asset Management (“WST”) through WST’s merger with former Rosemont partner Clearstead Advisors (“Clearstead”). This acquisition, completed without the traditional auction or banking intermediaries, marks a significant milestone in the evolution of both firms and illustrates Rosemont’s industry insight and collaborative nature.
Brad Mook, managing director at Rosemont, elaborated on Rosemont’s role in facilitating the deal, emphasizing the firm’s ability to balance the interests of multiple parties while securing a successful outcome for its investors. “I think it really did help that we weren’t really representing anybody. We could see both sides, as well as our own, and kind of work to keep everybody at the table focused on the bigger picture,” Mook told CityWire.
This acquisition enhances Clearstead’s geographic presence in the Mid-Atlantic and fortifies its capabilities by incorporating WST’s renowned advisor solutions platform. Such strategic expansions underscore Rosemont’s commitment to fostering high-caliber partnerships that promise enduring value and growth.
The article highlights an emerging trend in wealth management M&A, specifically a shift from raw, scale-oriented acquisitions to strategic, relationship-focused combinations. This may be a result of rising dissatisfaction among acquired firms, with nearly half reporting post-merger regret primarily due to personal conflicts. “We have a good sense of the market and the trade-offs being made among price, buyer fit, etc., and we are always happy to help facilitate a win-win,” Mook noted in the interview.
This union of two successful Rosemont partners—both thoughtful, relationship-oriented firms in the wealth management sector–is poised to deliver enduring benefits and mutual growth for all involved parties. It also represents a step closer to the end of Rosemont’s current fund cycle, further shifting its focus to growing its portfolio of permanent capital investments.
Click here to read the entire article in CityWire.
April 17, 2024
In the latest episode of the Rosemont Roundtable: Exploring the Business of Investment Management (formerly known as Global Investment Leaders), Chas Burkhart sat down with Barclay Douglas, an investment industry veteran with over 15 years at the helm of Criterium Advisors, a firm offering traditional consulting services, but focused on Outsourced Chief Investment Officer (OCIO) search.
During their conversation, Barclay shares his wisdom into various aspects of the investment management industry, and specifically his wide-ranging observations on the OCIO space.
Specifically, they discuss:
- Barclay’s background and his career trajectory, from his early days as a trainee stockbroker, to investment management marketing and business leadership, to founding Criterium Advisors, which initially focused on total fund management consulting but expanded into traditional institutional consulting and OCIO search services in 2013.
- Perspectives on the growing demand for OCIO services, competitive dynamics, business models, distinguishing characteristics, scale and offerings.
- How Criterium and Rosemont evaluate OCIO businesses and performance and the challenges in comparison, highlighting the need for a more nuanced approach beyond traditional benchmarking.
- The potential future of private equity; the importance of finding an OCIO with an understanding of the space and significant outperformance in U.S. markets.
- The risks associated with finding the right OCIO, including undervaluing the importance of expertise in alternative investments, over-reliance on quantitative metrics, inadequately assessing fee structures and underestimating the dynamic nature of the asset management industry.
- Industry developments and trends that are top of mind and views on current sales and marketing strategies.
Overall, the conversation provides insights into the complexities and dynamics of the OCIO industry, emphasizing the importance of client relationships, investment integrity and sustainable business practices.
All episodes of the Rosemont podcast—including Rosemont Roundtable and Global Investment Leaders—are available on Apple Podcasts, Spotify, Google Podcasts and more. Receive the episodes as soon as they premiere by subscribing today.
April 11, 2024
Conshohocken, PA, April 2, 2024 – Rosemont, a private investor in employee-owned asset and wealth management firms, announces the sale of its stake in Wilbanks Smith & Thomas Asset Management (“WST”) through WST’s merger with former Rosemont partner Clearstead Advisors (“Clearstead”). The transaction represents another step towards the completion of Rosemont’s pivot to solely permanent capital investing and supports the merger of two successful investment franchises into a leading wealth management/advisory business with broad geographic reach and over $44 billion under advisement.
Rosemont, which began investing permanent capital exclusively in 2018, is in the late stages of winding down its third and final private equity fund. The WST divestment represents the fund’s sixth realization and leaves two legacy investments. Rosemont’s permanent capital portfolio—the focus of all ongoing investment activity—currently has three partnerships, all of which sit on Rosemont’s balance sheet and are intended to be held indefinitely.
The merger between Clearstead and WST resulted from both the introduction and guidance by Rosemont, which exited its investment in Clearstead in 2022 through a majority sale to private equity firm Flexpoint Ford. Having been partners with both parties and understanding their strategic and cultural objectives, Rosemont recognized the fit and connected the principals. The leaders of both organizations soon united on a vision.
“The combination of WST and Clearstead is a terrific example of the Rosemont network in action,” Brad Mook, managing director at Rosemont, said. “Both firms had success during their Rosemont tenure, and each had greater ambitions. Knowing the industry as we do and understanding each firm’s objectives, bringing the two firms together made perfect sense. This is a case of one plus one equaling three, and Rosemont’s exit was merely a byproduct.”
About Rosemont
Rosemont is a specialist minority equity investor exclusively focused on a select number of partnerships with high-quality, employee-owned asset and wealth management companies. Rosemont acquires 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 35 years of advising and investing in asset and wealth management businesses. For more information, visit www.rosemontinv.com.
About WST
Wilbanks Smith & Thomas Asset Management, LLC is an SEC-registered investment advisory firm based in Norfolk, Virginia, that manages or advises over $5 billion in assets across wealth management, institutional advisory consulting, and advisor solutions (sub-advisory) channels. www.wstam.com
About Clearstead
Clearstead Advisors LLC is a private client and institutional financial advisory firm headquartered in Cleveland, Ohio. The firm advises nearly $40 billion for endowments and foundations, retirement funds, healthcare organizations and individuals, families, and related entities. www.clearstead.com
March 28, 2024
In the latest episode of the Rosemont Roundtable: Exploring the Business of Investment Management (formerly known as Global Investment Leaders), Brad Mook sat down with Wes Gallup, managing director and chief operating officer of Cary Street Partners, an independent wealth management firm based in Richmond, Virginia, with more than $8 billion in assets under management.* Their conversation centers around the evolution of Cary Street and offers insights into industry trends, growth strategy and technology’s role in modern wealth management firms.
Specifically, Brad and Wes discuss:
- How Cary Street pivoted from a corporate advisory firm to a full-service wealth management firm after an acquisition in 2007.
- The firm’s focus on both organic and inorganic growth, including prioritizing acquisitions that enhance capabilities and improve client service over raw scale.
- Managing growth by providing advisor independence while maintaining a cohesive brand.
- The importance of technology adoption for operating efficiencies and staying competitive in the modern wealth management industry.
- The potential for AI and emerging technologies to enhance productivity, even while recognizing the irreplaceable value of human relationships in the advisor-client dynamic.
Overall, the conversation underscores the importance of client-centricity, organic growth and thoughtful implementation of technology to achieve long-term success in the evolving industry landscape.
All episodes of the Rosemont podcast—including Rosemont Roundtable and Global Investment Leaders—are available on Apple Podcasts, Spotify, Google Podcasts and more. Receive the episodes as soon as they premiere by subscribing today.
*As of March 25, 2024, Cary Street Partners manages approximately $8 billion in assets.
February 22, 2024
In this episode of the Global Investment Leaders podcast, Chas Burkhart, CEO of Rosemont, sat down for a conversation with Jan van Eck, CEO of VanEck, a roughly $90 billion* multi-asset firm headquartered in New York. Founded in 1955 by Jan’s father, John van Eck, VanEck has gradually diversified, with the ETF business becoming dominant since its inception in 2006.
Their conversation covers Jan’s leadership evolution, the importance of culture and building strong teams, the strategic focus on the ETF business and the importance of being able to pivot in the rapidly changing financial services space.
Specifically, Chas and Jan discuss:
- The evolution of VanEck over its nearly 70-year history, from a pioneering gold business to a diversified provider of niche investment offerings.
- Jan’s role as CEO and the growth of VanEck as a leader in the industry, including the importance of focusing on personal and organizational strengths.
- The culture at VanEck, highlighting the importance of hiring industry experts and the resilience fostered by the tolerance for cyclicality in resource-based businesses, leading to a remarkably low turnover rate.
- VanEck’s approach to growing and pivoting the ETF business, including their two phases of product design and the current shift towards a more distribution-oriented industry.
- The role of performance in driving investor sentiment and flows, and how market direction, whether income or equity-oriented, plays a crucial role in decision-making.
- Identifying industry disruptors and VanEck’s positioning in the cryptocurrency and blockchain space.
- The broader industry trend of consolidation through mergers and acquisitions, and the benefits of being a private, employee-owned company with a long-term perspective.
Overall, this episode highlights a business-minded leader who understands the importance of firm culture, building a strong team and taking strategic risks.
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.
*As of February 7, 2024, VanEck manages approximately $90 billion in assets.
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