M and A
US, European Wealth Management Groups Merge

The US partner in the deal owns Forbes Family Trust and groups such as LGL Partners and Optima Fund Management. It is teaming up with Stanhope Capital, the European business. The transaction is an example of the kind of M&A activity happening around the world in a sector looking for more scale.
FWM Holdings, the owners of Forbes Family
Trust and other US investment groups, has merged with
European investment house and merchant banking group Stanhope Capital.
The merger builds a group overseeing $24.2 billion, operating
from six offices worldwide.
The merger is subject to customary closing conditions and is
expected to close in the first quarter of 2021. The management of
FWM will receive Stanhope Capital shares as part of the
consideration. Other financial terms were not disclosed.
Besides Forbes Family Trust, FWM Holdings owns LGL Partners and
Optima Fund Management.
The combined company will have an expanded geographic footprint
across the US and Europe, adding to investment capabilities
across areas including listed equities and alternatives (private
equity, real estate and hedge funds).
When the transaction is closed, Stanhope Capital and FWM will
operate as a single company but will retain their names under the
Stanhope Capital Group umbrella.
Founded in 2009 by Keith Bloomfield, FWM oversees $11.2 billion
for ultra-high net worth family offices and individuals,
foundations and endowments located primarily in the US from
offices in New York City, Philadelphia and Palm Beach. In
addition to its wealth management activities, FWM employs 50
people. It acquired New York-based hedge fund specialist Optima
Fund Management in 2019.
Stanhope is the larger of the two entities in AuM terms - $13
billion – and was founded in 2004 by Daniel Pinto. It serves
private clients, endowments and charities and employs 85 people,
with offices in London, Geneva and Paris.
The deal is an example of M&A activity affecting multi-family
offices and similar structures. In September UK-listed Schroders
acquired Sandaire, the London-based multi-family office. In 2018,
Caledonia Investments, owned by the UK’s Cayzer family, bought a
significant minority stake in Stonehage Fleming, another MFO.
Roles
Pinto will be the chairman and CEO of the combined group;
Bloomfield is remaining as CEO of FWM and will be responsible for
its US businesses.
Bloomfield will join Stanhope Capital’s board of directors as
vice chairman as well as the group’s executive committee. He will
be joined on the board by Thomas H Lee, the private equity
pioneer. Jonathan Bell, Stanhope’s chief investment officer and a
member of the board, will also become a vice chairman.
Seward & Kissel LLP represented FWM Holdings in connection with
this transaction.