Parthenon Capital, a personal fairness agency based mostly in Boston, has struck an settlement with Chicago-based RSM US LLP, to accumulate Prime 5 Agency’s wealth administration apply.
RSM US Wealth Administration LLC shall be renamed Choreo LLC, with “Choreo” as the brand new model title. The deal is anticipated to be accomplished within the first quarter of the 12 months, with a goal date of Feb. 18.
Monetary phrases of the deal weren’t disclosed. RSM US Wealth Administration had over $12 billion in belongings underneath administration and belongings underneath advisement as of Nov. 30, 2021. Parthenon anticipates that every one of RSM’s roughly 140 wealth administration professionals will transition to Choreo, the place the staff will function the muse for future progress of the apply.
Larry Miles, a 20-year wealth administration veteran, will turn into CEO of Choreo, whereas Dave Scudder, RSM US Wealth Administration’s nationwide chief, will transition to Choreo with the remainder of the wealth administration staff and turn into Choreo’s government vp of strategic partnerships.
The deal is a part of a pattern of huge accounting companies putting offers with personal fairness and different funding companies. In November, Warren Averett’s wealth administration subsidiary entered right into a strategic partnership with Wealth Companions Capital Group and HGGC, wherein they acquired nearly all of Warren Averett Asset Administration (see story). Different companies putting offers final 12 months with funding companies included EisnerAmper with TowerBrook Capital Companions, and Schellman & Co. with Lightyear Capital.
On this case, Parthenon is outright buying RSM’s wealth administration apply. “We’re extremely pleased with our wealth administration staff and their accomplishments over the previous 20 years,” stated RSM managing companion and CEO Joe Adams in an announcement Wednesday. “We consider the mix of the skilled wealth administration staff with the imaginative and prescient of Parthenon and Larry Miles places Choreo in a robust place for the longer term.”
Photograph courtesy of RSM US LLP
RSM US ranked No. 5 on Accounting At the moment’s 2021 checklist of the Prime 100 Corporations, with $2.79 billion in annual income.
RSM and Parthenon stated their purchasers would proceed working with the identical wealth administration staff they know and can obtain the identical funding advisory, monetary planning, and different wealth administration providers. In the meantime, purchasers can proceed to obtain tax and different providers from RSM US.
“RSM US Wealth Administration is a hidden gem within the business, and we see thrilling potential for progress,” Miles stated in an announcement. “We’re desperate to take the corporate to the following degree by investing within the staff, expertise, recruiting and advertising and marketing, in addition to increasing into new markets organically and thru acquisitions. We sit up for constructing upon the tradition that has contributed to a robust wealth administration staff, and we’re excited to drive progress that may create new alternatives for our professionals and unlock added worth for purchasers.”