Fiduciary Network, a US-based investment bank that specializes in the wealth management sector, has acquired a minority stake in Pathstone Family Office.
The acquisition will enable Pathstone to firmly establish an employee-ownership program and provide capital for growth through acquisitions, according to Financial Advisor Magazine.
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Mark Hurley, Fiduciary Network’s founder and CEO, said Pathstone Family Office provides ultra-wealthy families with wealth services cheaper than they can do so themselves.
Hurley added that Pathstone will also approach rich families that are being served by single-family offices and offer them services at about a third of the cost.
"Pathstone have a very deep bench of owners who have different expertise. They can do it much cheaper than the clients can do it themselves," Hurley added.
With about $2 billion in assets under management, Pathstone Family Office has 34 employees and serves 31 client families with between $50 million and $350 million in assets.
Steve Braverman executive managing director of Pathstone said: "It gives us the ability to have a well-defined process around next-generation ownership."
Founded in 2007, Fiduciary Network currently invests in about 13 advisory firms with an average AUM of $1.6 billion.
