How did America's largest RIA, CAPTRUST Financial Advisors, grow more than 20 percent last year? Two ways—through acquisitions and organic growth.
Last year, the firm, which manages more than $300 billion in assets, acquired Catawba Capital Management, Morton Wealth Management, FCE Group, Watermark Asset Management and Rogers Financial, bringing CAPTRUST a combined total of $5.7 billion in assets under administration (AUA).
The firm, which got its start in the 401(k) business, reported a 21.5 percent revenue growth in 2018 and $65 billion in new client assets. With the S&P 500 down more than 4 percent last year, most RIAs were flat.
But CAPTRUST's huge defined contribution plan business provides it with built-in organic growth. Additionally, its expertise in the area enables to compete effectively for larger 401(k) plans, business that most RIAs can't win.
It is also making a concerted effort to expand in the wealth management space, which offers higher profit margins. This week the Raleigh, N.C.-based giant acquired two RIAs with more than $2 billion in combined client assets, according to a news release.
A spokesperson for CAPTRUST declined to disclose details of the financial transactions.
CAPTRUST says that its acquisition of McQueen, Ball & Associates in Bethlehem, Pa., and Cornerstone Capital Advisors in Green, Ohio, will expand its presence in both states, where CAPTRUST already has established institutional advisors and clients.
Founded by Jerry McQueen in 1981, McQueen, Ball & Associates manages $1.3 billion of client assets. The team provides financial planning and investment management services for individuals, families, small businesses and institutions.
Cornerstone Capital Advisors, led by Mario Giganti, manages $770 million in client assets. The Cornerstone team helps individuals, families, women in transition, high-income professionals, and entrepreneurs. The company also assists businesses and nonprofit organizations with their retirement plans and endowments.
“McQueen, Ball & Associates and Cornerstone Capital Advisors bring growth-minded advisors and client rosters that will quickly reap the benefits of our network and scale,” said Fielding Miller, founder and CEO of CAPTRUST, in a news release.