Aspiriant, an independent wealth management firm based in Los Angeles, is expanding its California base through a partnership agreement in which it will absorb Hearthstone Private Wealth Management, a San Diego-based wealth management firm.

The partnership, the firm announced in a press release, follows several other similar transactions Aspirant has completed over the past several years. It increases Aspiriant’s regional strength in San Diego, while expanding offerings and services for clients of both firms.

Hearthstone has a team of seven employees that service 150 clients with approximately $350 million in assets under management for affluent families and professionals. Aspiriant, a national, employee-owned, independent advisory firms, had more than $14 billion in assets under management before the current acquisition and advised 1,788 clients in 11 offices throughout the U.S. Hearthstone's leadership and employees will become employees of Aspiriant and operate under its name. The Hearthstone employees will receive ownership positions in Aspiriant. All clients are clients of the entire firm.

The merger allows Aspiriant to extend new offerings to clients, while also bolstering resources in the San Diego market, the firm said. During the past several years, Aspiriant has completed similar arrangements: with San Diego-based wealth management firm Hokanson Associates in 2015; with the Los Angeles-based Glowacki Group, a wealth management firm, in 2016; and with Silicon Valley-based wealth advisory firm Stanford Investment Group in 2017. Hearthstone has a 10-year history of serving high-net-worth individuals and families.

The transaction fits with Aspiriant’s continuing growth strategy, said Rob Francais, CEO of Aspiriant, in an interview Wednesday. Employee-owned independent firms looking to expand currently face the challenge of competing against acquiring firms that are dealing only with price considerations and are part of the reason for the current soaring valuations for RIA firms, he said.

“Our growth plans since our inception in the early 2000s have been to add value, not just to grow,” Francais said. “We are looking for firms that have the same values and the same mission as an independent, employee-owned firm. This transaction is a validation that there are still people out there who share our values-based goals. We want to pursue being a national organization that works on behalf of the clients.”

He added, “We are thrilled to be partnering with Hearthstone, a firm that parallels our standards and values when it comes to servicing clients and investing in employees. When it comes to Aspirant’s future growth, the sky is the limit for merging with like-minded organizations. We know succession planning is top of mind for many advisors and their clients, and we are here to offer an alternative path to selling to the big banks and private equity for firms that wish to remain employee-owned and independent of financial conflicts.”

Francais said the firm will be looking to expand to include other wealth management firms in the future, but also wants to partner with other types of professionals to expand the services it offers.

Paul Hynes, president, CEO and founder of Hearthstone, added in a statement, “We were seeking a partner who would support our expansion into the Los Angeles and San Francisco Bay Area markets.”

DeVoe & Company, an investment bank and consulting company serving the RIA industry, represented Hearthstone in the transaction. It was DeVoe & Company’s 13th transaction in 2021.