Emigrant Bank, the largest privately held, family owned bank in the United States, has bought the remaining 25 percent of the Fiduciary Network that it did not already own, Silver Lane Advisors announced Wednesday.
The 25 percent share was owned by Fiduciary Network CEO Mark P. Hurley and other management personnel. Fiduciary Network provides transition financing for financial advisory firms, typially helping junior partners purchase minority stakes from founding partners via loans. It also purchased minority stakes of its own and acted as a passive investor.
Karl Heckenberg, an advisor to Emigrant, succeeds Hurley as CEO.
Emigrant has made other forays into the RIA space besides Fiduciary Network. Earlier this year, it sold a majority equity interest in HPM Partners to Don Marron's Lightyear Capital, which also owns Advisor Group, a network of four independent broker-dealers with 6,800 reps. HPM Partners served 1,700 high net worth clients and manged about $9 billion in assets.
Fiduciary Network was established in 2007 as a venture between Hurley and New York real estate billionaire Howard P. Milstein, who also owns Emigrant and uses it as a vehicle for many of his investments. Over the last decade, Fiduciary Network acquired minority stakes in Pathstone Federal Street, Regent Atlantic, Evensky & Katz/Foldes Financial, Sand Hill Global Advisors, Brightworth and more than 10 other RIA firms.
Emigrant Bank, based in New York City, has now invested a total of $155 million in Fiduciary Network. Silver Lane Advisors handled the latest transaction for Emigrant Bank.