Captrust Financial Advisors has expanded its reach with the acquisition of Boston Financial Management (BFM), an RIA overseeing nearly $5 billion in assets for about 1,100 clients.
The transaction terms remain undisclosed, though Captrust’s approach includes providing equity stakes to acquired RIAs. This equity offering, according to Managing Director Wilson Hoyle, instills an ownership mindset among employees, ensuring alignment with the firm’s values. "It's essential for us," Hoyle states. "Equity alignment is a core part of our strategy."
BFM’s decision to join Captrust followed an extensive review process, according to CEO Louis Crosier. "We engaged with 23 firms, received 12 offers, and evaluated them all," Crosier explains. "What stood out with Captrust was their shared values and cultural fit, beyond just infrastructure or financials." Captrust’s appeal lay not only in its resources but also in its collaborative and team-oriented philosophy, which Crosier describes as a compelling match for BFM.
For Captrust, BFM presented an attractive combination of market presence, talent, and growth potential. "BFM checked every box," says Hoyle, emphasizing the firm’s alignment with Captrust’s strategic vision. This acquisition aligns with Captrust's ongoing growth strategy, which has been marked by a series of acquisitions and strong organic expansion. Since its founding in 1997, Captrust has built a portfolio exceeding $1 trillion in assets and serves a broad client base, including individual investors, retirement plans, endowments, and foundations. This trajectory has earned Captrust a spot on Barron’s Top 100 RIAs for 2024.
Crosier, who has led BFM for the past four years, weighed independence against the potential benefits of joining a larger firm. He ultimately saw Captrust’s scale as a catalyst for growth and development opportunities for BFM’s staff, especially younger team members. "To support our clients’ complex needs, we needed access to more resources and career pathways for our employees," he explains. "Joining Captrust allows us to transition from a 50-person team to part of an organization with over 1,600 people, enabling us to meet client needs on an entirely different scale."
The acquisition model was another factor in BFM’s decision. Crosier points out that some RIA consolidators operate as loosely affiliated networks rather than fully integrated teams. "We were looking for a firm where we could truly be part of something larger," he says. Captrust’s model promises a seamless integration, aligning with BFM’s vision of unity and support.
Founded in 1976, BFM serves high-net-worth individuals, families, and a selection of endowments and foundations. The transition will see Crosier and BFM’s staff integrate into Captrust, while BFM’s founder and Chairman, Richard H. Morse, plans to retire.
With BFM’s acquisition, Captrust expands its footprint in New England, enhancing its presence in Massachusetts, where it now operates five offices and employs 100 professionals. BFM’s Boston headquarters, along with offices in Portland, Maine, and Cape Cod, extend Captrust’s reach across New England. This marks Captrust’s sixth acquisition in Massachusetts. "Massachusetts is one of our largest markets," says Hoyle. "We value the region highly, and BFM’s addition strengthens our presence and commitment to this area."
