F.L. Putnam Investment Management Co. announced it has agreed to buy Darwin Trust Company, a move that will add trust services to its wealth management platform.
Pending the purchase, the Lynnfield, Mass., RIA is also adding an office in Nashua, N.H., where Darwin has one of its home offices. The deal must be approved by the New Hampshire Banking Department, according to a press release.
Putnam didn’t disclose the financial terms of the deal.
Putnam, which has $8.6 billion assets under advisement, said Darwin comes with a comprehensive suite of trust services for high-net-worth individuals and families across the U.S. The firm services more than 110 clients from offices in Arlington, Mass., and Nashua.
“This acquisition is another important step towards our commitment to deliver sophisticated services and solutions that help our clients better manage their financial lives,” Putnam CEO Tom Manning said in a statement. “Darwin is a valued partner to clients throughout the U.S. and we are pleased to have identified such an exceptional team to lead our trust business.”
After the deal closes, the trust company will become part of Putnam and retain the Darwin name, the release said. Melissa Sommer, co-founder, CEO and president of Darwin, will serve as managing director. Darwin employees in Arlington will relocate to Putnam’s headquarters.
The acquisition allows Darwin to “leverage F.L. Putnam's extensive resources and expertise to enhance the value we deliver to our clients,” Darwin co-founder John Gosselin said. “I am confident that our combined strengths will position us for continued growth and success in the years to come.”
In an email interview, Manning said that his firm has been interested in acquiring corporate trustee services for “some time” to satisfy the interests from many of its clients and prospects.
“Bill pay, tax prep and 401k administration services are three areas we are also interested in bringing in-house,” Manning told Financial Advisor. “We may seek to acquire these capabilities by way of an established firm or by hiring a team of individuals.”
Manning added that Putnam has added nearly $2 billion in new client assets over the past 12 months, mostly organically.
“We expect to continue to grow organically by 10-15% per year over the next few years and will seek inorganic acquisitions to grow our presence if we can find the right skill sets,” he said. “Firm and talent acquisitions have and will continue to be part of the growth equation.”