Houston-based U.S. Capital Advisors and Austin-based Legacy One Financial Advisors announced on Thursday that they will merge to create a $5.6 billion AUM RIA.
That would make it one of the largest RIA in Texas, according to the announcement.
According to spokesperson Ann Marie Gorden, Legacy One brings a reported $1.4 billion in client assets to the merger, increasing the amount of client assets managed by USCA wealth management subsidiary USCA RIA, LLC to $5.6 billion. USCA also has a brokerage division and related entities that bring the firm’s total client assets to nearly $9 billion.
Once USCA RIA has integrated with Legacy One’s wealth management business, the subsidiary will become U.S. Capital Wealth Advisors, LLC (USCWA), which will maintain offices across Texas in Houston, Austin, Dallas, and Georgetown, as well as in New York City.
Financial details of the transaction were not disclosed.
Patrick Mendenhall, co-founder and managing partner of U.S. Capital Advisors, said in the news release that he and his company were excited to begin working with their new partners to expand the fee-based advisory business both stateside and nationally.
“This partnership allows us to combine our world-class financial advisors and the exceptional client experience they deliver, with the proven entrepreneurial leadership, strategic guidance and resources of the DeJoria family, Merchant and Legacy One,” he said.
Merchant Investment Management, Legacy One’s New York City-based partner since 2017, introduced the two firms and was instrumental in the development and support of the nearly $9 billion blockbuster deal, the news release said.
In addition to Merchant, Legacy’s team included entrepreneur and philanthropist John Paul DeJoria, co-founder of the Paul Mitchell line of hair products and The Patrón Spirits Company, and the DeJoria family.
Since 2018, DeJoria and the DeJoria family have been non-participating investors in Legacy One, However, with the merger of their investment and USCA, that will change, according to the news release. Both DeJoria and the DeJoria family have said they plan to reinvest the future proceeds from their investment in USCWA in causes they support.
To demonstrate a commitment to empowering others, DeJoria has pledged to donate the initial profits earned from his investment in USCWA to his lifelong mission of combating homelessness, while the DeJoria family’s Austin-based foundation, JP’s Peace, Love & Happiness Foundation, has said it will make an advance donation of $2 million from the proceeds expected to be generated by USCWA to the endowment established in March at Dell Medical School at the University of Texas.
The endowment supports the continuation of Dell's street medicine programs, as well as research initiatives and training for the next generation of doctors to serve vulnerable populations, including people experiencing homelessness or housing insecurity.
“Social responsibility and sustainability have always been core values of the companies and charities that I have been a part of,” DeJoria said in the news release. “I expect USCWA will demonstrate these core values through the services they provide.”