Captrust Financial Advisors has announced its acquisition of Monroe Vos Consulting, a Houston-based registered investment advisor with more than $5.8 billion in client assets.
Monroe Vos was founded by Jim Monroe and Tim Vos in 1994 and brings a 17-person team to Captrust. The firm, which has a second location in Birmingham, Ala., provides advisory services to retirement plan sponsors, endowments and foundations, and wealth management services to high-net-worth individuals and family offices.
Vos said the firm decided to sell out of a desire for additional scale—particularly in the areas of technology, research and pricing—and the need for a succession plan.
“And we’ve always wanted our whole team to have equity ownership,” he added. “With Captrust, there’s a path to equity ownership for any employee who’s been there for three years.”
Both firms came out of the brokerage space years ago in a bid to remove conflicts of interest, noted Vos. “That really clicked when we met,” he said. “So, that was a plus and, lastly, it was the community. We love to give back to the community and saw that same idea clearly present at Captrust with their Community Foundation as well.”
The acquisition strengthens Captrust’s presence in the Houston and Birmingham markets, joining the firm’s existing wealth, retirement plan, and endowment and foundation practices in those regions.
Managing director of the firm’s advisor group, Rick Shoff said firms that already offer all three of Captrust’s business lines often present the best opportunities for acquisition.
“There are very few firms that are as good at all of those as we are, so that was attractive with Monroe Vos, and we also have very similar clients,” he said. “And then, the biggest thing for us is talent. The firm with the most talent is going to create the most value.”
The Monroe Vos deal follows the Texas additions of Covenant Multifamily Offices in 2021 and South Texas Money Management in 2019. Captrust has had an established presence in Texas for more than a decade and employs more than 100 people in the state.
Both firms serve a mix of institutional and high-net-worth clients, said Park Sutton Managing Director Steven Levitt, whose firm represented Monroe Vos in the transaction.
Park Sutton has served as advisor on four deals involving Captrust in recent years and Levitt said to expect more “coming down the pike soon.”
The deal, which represents Captrust’s 64th since 2006, is the firm’s first in 2023.
Shoff confirmed that more deals are set to be announced but declined to share details, except that they will likely be larger on average than in 2022.
“We have a handful that are in the process of closing,” he said. “And, even if that’s all we did for the rest of the year, it would still be a great year from an acquisition standpoint. But our pipeline is really strong, and I think we’ll definitely have several more before the end of the year.”
Consistent with other transactions, Monroe Vos will take on Captrust branding, and Vos and other team leaders will become equity owners.
“And then we’re hoping that a number of our team members will get on that path of equity ownership down the road,” said Vos.
Founded in 1997, Raleigh, N.C.-based Captrust offers investment advice, financial planning, estate planning, tax advice and compliance services to individuals and families, as well as additional services to retirement plan sponsors, endowments, foundations and religious entities.
The private equity-backed firm currently manages more than $125 billion in client assets and advises on $775 billion more across 75 locations nationwide.