September 21, 2023

FDI Forum

Earn the right Invest

Atlantic Union offering expense advisory arm to Cary Street Companions

Cary Avenue Companions is obtaining Atlantic Union Bank’s Dixon, Hubard, Feinour & Brown registered expenditure advisory arm. (Photograph courtesy of Cary Street Partners)

An acquisition-hungry downtown investment decision agency has seemed to Richmond’s most important domestically dependent bank for its upcoming enjoy in Virginia and its major deal ever.

Cary Road Associates is on the verge of attaining Atlantic Union Bank’s Dixon, Hubard, Feinour & Brown registered investment advisory arm.

On closing later this thirty day period, Cary Road Partners will take up DHFB and its $1.6 billion in property under administration. That will give Cary Street Companions $7 billion in belongings.

It also will get offices in Roanoke, Charlottesville and Arlington, with 22 personnel spread across the a few outposts.

The offer does not involve Atlantic Union Bank’s bigger wealth administration division. (BizSense file)

The deal does not involve Atlantic Union’s larger sized prosperity administration division, which stays in put with $6.5 billion in assets underneath administration as of the finish of the initial quarter.

And the offer with Cary Avenue Associates doesn’t necessarily mean Atlantic Union is totally untethering alone from these operations. As aspect of the sale, AUB will take ownership of a minority stake in Cary Street Companions and have a seat on the firm’s board of directors.

Joe Schmuckler

Though complete economical conditions of the offer have been not disclosed, Joe Schmuckler, CEO of Cary Avenue Companions, said it’s the firm’s premier-at any time acquisition.

Schmuckler said the buy is aimed at continuing the firm’s progress in Virginia, exactly where additional than 60 % of its business enterprise is derived. It has offices in Abingdon, Fredericksburg, Wytheville and Virginia Seaside, in addition to its local outposts in Innsbrook and its company headquarters at Riverfront Plaza.

“This was an chance for us to even further cement that and do it with a solid manufacturer as a associate,” Schmuckler explained. “The enterprises they acquired are definitely superior companies.”

Atlantic Union developed its registered investment decision advisory subsidiary by several acquisitions commencing in 2016, when it bought Charlottesville-primarily based Outdated Dominion Cash Administration. Then in 2018 it acquired Outfitter Advisors in Northern Virginia and Roanoke-centered Dixon, Hubard, Feinour & Brown.

Those people buys all had been at some point introduced less than a single authorized entity in DHFB.

Schmuckler reported discussions about a deal among the two companies was born out of their longtime banking partnership.

“We’ve been a customer of the bank’s for rather a prolonged whilst and began to communicate to them about their system,” Schmuckler mentioned.

Maria Tedesco

Atlantic Union Lender President Maria Tedesco explained the financial institution manufactured the deal immediately after a “thorough examination of the changing landscape in the RIA marketplace and customer needs.”

Tedesco emphasised that Atlantic Union’s prosperity management business enterprise proceeds with trust and asset administration products and services, personal banking companies and financial consulting.

“Those main corporations stay in place. In reality, we are now ready to emphasis much more of our essential means on driving the development of these firms which have constantly been integrated into the lender and component of our prolonged-expression approach,” she stated.

Schmuckler would not remark on how DHFB will include to Cary Avenue Partners’ earnings foundation. Atlantic Union disclosed $2.7 million in registered advisor management service fees in the very first quarter and $9.9 million in these kinds of service fees for all of 2021, according to SEC filings.

Schmuckler reported the a few groups beneath the DHFB umbrella will quickly operate below the Cary Road Associates brand name. But he said they’ll go on to run with some autonomy, as they did within the AUB process.

“These corporations are culturally one of a kind. We want to allow these groups to retain the integrity of their enterprise and we want to guidance them properly,” he reported.

It’s the next acquisition introduced by Cary Avenue Partners this 12 months, next its invest in in March of National Prosperity Management in New Jersey. The business had formerly obtained yet another New Jersey firm in 2019.

And the acquisitions are probably to continue to keep coming, Schmuckler claimed.

“We have a drive to grow and to receive good businesses,” he explained.