NEW YORK, April 11, 2024 – Arax Investment Partners (“Arax”), a leading wealth management platform company supported by RedBird Capital Partners (“RedBird”), has announced a significant expansion through the addition of U.S. Capital Wealth Advisors (“USCWA”). USCWA, a prominent independent hybrid wealth management firm based in Houston, Texas, brings approximately $9 billion in Assets Under Management/Advisement (AUM/A) and a team of 62 advisors serving over 5,500 clients to the Arax platform.
This strategic move significantly enhances Arax’s footprint in key Texas markets including Houston, Austin, Dallas, and Georgetown, while also strengthening its presence in New York City and Massachusetts. USCWA provides substantial scale, a robust operational infrastructure, and comprehensive wealth management services. These services, encompassing financial planning, investments, and insurance, are tailored to meet the complex needs of high-net-worth (HNW) and ultra-high-net-worth (UHNW) clients. Within just 18 months, Arax Investment Partners has rapidly grown its boutique wealth management platform to encompass 120 advisors, serving over 12,000 clients and managing more than $16 billion in AUM/A, demonstrating its strong position in the competitive wealth management landscape.
Haig Ariyan, Chief Executive Officer of Arax Investment Partners, emphasized the strategic alignment between the two firms: “USCWA was built upon the same foundational principles as Arax, with a commitment to empowering financial advisors to deliver sophisticated, holistic solutions to their clients. This approach combines the personalized service of a regional firm with the extensive resources typically associated with larger, national institutions. Integrating USCWA’s multi-custodial advisory platform, along with the capabilities of U.S. Capital’s broker-dealer, will unlock further opportunities for both advisors and their clients across the entire Arax platform.”
U.S. Capital Advisors, co-founded by Pat Mendenhall and Dave King, merged its substantial advisory wealth business with Legacy One Financial in 2021, creating USCWA. Under the leadership of Jim Fortescue, Pat Mendenhall, and Dave King, USCWA has become a recognized name in wealth management. As USCWA joins Arax Investment Partners, it will maintain its established brand identity and core advisor and client operations. USCWA will operate as a key component of the Arax platform, contributing to the overall strength and service offerings of Arax Investment Partners.
Arax Investment Partners is structured as a multi-boutique platform, designed to provide shared services across essential back-and-middle office functions. This model allows partner firms to focus on client service and growth. Arax actively supports both organic and inorganic growth strategies for its partner firms through new product and service development, cross-selling initiatives, and strategic support for Mergers and Acquisitions (M&A) activities. This comprehensive support extends to key teams at USCWA, Ashton Thomas, and other advisory firms within the Arax network, fostering a collaborative and growth-oriented environment.
Pat Mendenhall, Co-Managing Partner at USCWA, highlighted the client-centric ethos shared by both organizations: “We are dedicated to providing our clients and advisory teams with the sophisticated financial support, guidance, and solutions necessary for their success, all delivered through an unparalleled client experience. We are enthusiastic about continuing this fundamental commitment as part of the Arax team. Arax’s partnership approach and adaptable platform are distinctive in the market and will empower our team to achieve even greater outcomes for our clients.”
John Paul Dejoria, a notable entrepreneur and philanthropist, expressed his positive outlook on the acquisition. “As a client, partner, and owner within the independent wealth industry at US Capital Wealth, I have witnessed firsthand the firm’s dedication to clients and innovation. Entrepreneurs should always seek the right partners for future expansion and development. We are confident that RedBird, Arax, and their leadership team will enhance shareholder value and, most importantly, continue to provide exceptional service to our valued clients, employees, and talented advisors.” Mr. Dejoria, an early investor in Legacy One, will remain a significant shareholder in USCWA, underscoring his continued belief in the firm’s future within the Arax platform.
Advisors
UBS Investment Bank and TD Securities acted as financial advisors to Arax Investment Partners on this transaction. Fried Frank served as legal counsel to Arax.
About Arax Investment Partners
Arax Investment Partners is a rapidly expanding multi-boutique wealth management platform that strategically invests in leading operating companies, partnering with founders and management teams. Arax focuses on providing growth capital and resources to Registered Investment Advisors (RIAs), hybrid wealth managers, and advisor teams seeking a robust platform to scale their businesses. Arax Investment Partners empowers its affiliates to maintain their entrepreneurial spirit while benefiting from industry-leading financial services and support. Firms within the Arax network gain access to a seasoned management team with a proven history of scaling wealth platforms, expertise in M&A, capital sourcing capabilities, and company-building expertise, all backed by RedBird Capital Partners. The leadership, multi-platform structure, and growth equity partnership of Arax offer a unique advantage to its partners. For further details, please visit Arax Investment Partners Website.
About U.S. Capital Wealth Advisors LLC
U.S. Capital Wealth Advisors, headquartered in Houston, Texas, with additional offices across Texas, New York City, and Massachusetts, is a fee-based wealth management advisory platform launched in May 2021. USCWA was formed through the strategic combination of U.S. Capital Advisors and Legacy One. USCWA’s mission is to leverage the extensive experience and expertise of its financial advisor teams with a broad range of investment strategies and solutions to deliver an outstanding client experience. For more information, please visit: U.S. Capital Wealth Advisors Website.
About RedBird Capital Partners
RedBird Capital Partners is a private investment firm focused on building high-growth companies by providing strategic capital to founders and entrepreneurs. RedBird currently manages $10 billion in assets on behalf of a global investor base. Founded in 2014 by Gerry Cardinale, RedBird combines private equity investing with a hands-on business building approach, concentrating on key sectors within Financial Services, Sports, and Media & Entertainment. Gerry Cardinale has a 30-year track record of partnering with founders and entrepreneurs to develop industry-leading growth companies. For more information, please visit RedBird Capital Partners Website.
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