First Affirmative Financial Network, a nearly $1 billion firm that specializes in socially responsible investing, has been acquired by FOLIOfn Inc., the two firms announced Tuesday.
First Affirmative, an RIA based in Colorado Springs, Colo., promotes sustainable, responsible impact investing through its network of advisors. It will retain its name under the FOLIOfn deal, the terms of which were not disclosed. First Affirmative has a network for 80 advisors who have independent RIA contracts with the firm and another 20 advisors who work directly for the firm.
The acquisition will expand FOLIO’s presence in the socially responsible investment market. FOLIOfn provides investment technology and other services to the financial services industry. Its subsidiary, Folio Investments Inc., is a broker-dealer and custodian.
“Folio is dedicated to transforming the way people invest for the better. We have long provided financial advisors – and were the first brokerage platform to provide individual investors – with sector, social issue and security type filters to customize their portfolios and align their investments with their social values,” says Steven M. H. Wallman, FOLIOfn founder and CEO.
The acquisition will allow the firms to combine Folio's investment filters and First Affirmative's proprietary investment strategies and shareholder advocacy, says FOLIO.
It also will give investors access to private investments in companies with specific sustainability or impact missions, as well as those providing jobs and creating opportunities that raise capital through Folio's online private capital network.
“First Affirmative has been working for more than 25 years to change the face of investing,” says George Gay, CEO of First Affirmative Financial Network. "We see our new relationship with Folio as a logical and exciting step forward, and one that will elevate and transform the sustainable, responsible, impact investment industry.”
Steve Schueth, president of First Affirmative, adds that the acquisiton means the firm now has a “partner that is bigger and stronger that has the technology resources that we do no have to help us in this very competitive market.
“This also is further indication that this sustainable, responsible, impact investing market has matured,” he says. “The industry is responding to the demand from investors for SRI investing.”
Greg Vigrass, president of FOLIO Institutional, agrees the socially responsible/impact investing market is expanding. FOLIO has had screens in place for years that enable investors to invest in accordance with their values.