Emigrant Partners, a New York City-based wholly owned subsidiary of New York Private Bank & Trust (NYPB&T), has made a strategic minority investment in Hollencrest Capital Management LLC, a wealth and investment management firm headquartered in Newport Beach, Calif., the two companies announced today in a news release.
Financial details of the transaction were not disclosed.
Hollencrest currently manages approximately $1.7 billion of client assets for high-net-worth and ultra-affluent individuals and families.
The Emigrant Partners entity, formerly known as Fiduciary Network, makes non-voting minority investments into wealth, asset and alternative asset management firms to enable them to achieve growth and transition goals. Under terms of the Hollencrest deal, Emigrant will provide the firm with the expertise, resources and capital of the largest privately-held, family-owned and operated bank in the country.
NYPB&T and Emigrant Partners are led by financier, philanthropist and entrepreneur Howard Milstein, who is part of the third generation of New York's Milstein family. Hollencrest is the fourth minority investment Emigrant and its affiliate, Fiduciary Network (FN), has made so far this year.
In April and May 2020, Emigrant made strategic minority investments in Stratos Wealth Holdings, LLC, a Beachwood, Ohio-based family of companies overseeing $14.5 billion in brokerage and advisory assets; Parallel Advisors, a San Francisco financial planning and investment management firm managing approximately $3 billion in AUM; and Pure Financial Advisors, a $2.4 billion RIA with offices in San Diego, Orange County and Los Angeles, Calif.
With the addition of Hollencrest, Emigrant has invested in four firms so far this year, managing a total of $21.6 billion in client assets.
Greg Pellizzon, Peter Pellizzon and Rob Wolford founded Hollencrest Capital Management in 1999, and continue to manage the firm today as acting managing directors. Pellizzon, CEO of Hollencrest, explained in a news release why he and his partners chose to affiliate with Emigrant.
"After meeting with many groups over the years, we discovered that not only did the team at Emigrant best appreciate our business model, we also believed they would provide optimal support to Hollencrest as we enter our next stage of evolution,” he said. “Emigrant will afford us the opportunity to attract like-minded advisors and firms that could benefit from expanding their client service offerings and capabilities as part of the Hollencrest team.”
Karl Heckenberg, president and CEO of Emigrant Partners, said in the news release that Hollencrest offered much more opportunity than the typical RIA firm, including unique direct real estate and private equity investing expertise, as well as deep experience in business exit strategies. "We have always sought to form close relationships with our partner firms while leaving day-to-day decisions with management,” Heckenberg said.. “We’re confident NYPB&T’s roots in real estate investing, along with its capital support and vast network of resources, can take Hollencrest to the next level.”