“Pathstone is able to serve a family holding a highly concentrated business,” Braverman says. “We can handle pre- and post-liquidity [clients] and are well equipped not to be dependent on liquid capital.” Affluent families are increasingly investing in a manner similar to merchant banks, according to the principals.
Exactly which complimentary services the two firms plan to use remains to be determined. “We work on taxes as part of a team but we do not do tax prep,” Lapann says.
The transaction continues the consolidation trend among large multifamily offices and RIAs in the Northeast. In July, Baltimore-based Brown Advisors acquired Highmount Capital, which manages about $2.3 billion in Boston.