Stanhope Capital and FWM Holdings plan to merge and create a wealth management firm with $24.2 billion in assets.
The tie-up of London-based Stanhope and FWM, the parent company of U.S. multi-family offices Forbes Family Trust and LGL Partners, will create one of the world’s largest independent advisory firms, Stanhope said in a statement on its website. The deal is expected to complete early next year.
The merger will offer “an investment platform designed to give clients the flexibility to combine liquid, well-diversified portfolios with exciting opportunities in private equity, real estate and hedge funds,” Stanhope Chief Executive Officer Daniel Pinto, who will be chairman and CEO of the combined group, said in the statement.
Wealth managers are competing to manage the finances of the world’s richest investors and are seeking to achieve scale amid rising regulatory costs and low interest rates. The newly-merged Stanhope Capital Group will focus on listed equities and alternative assets and cater to clients across the U.S. and Europe, according to the statement.
The firm will eventually eye future expansion, possibly through merger activity, Pinto said in a telephone interview. “It’s clear that now we are covering the U.S. and Europe, we will be looking at opportunities in these areas,” Pinto said. “Asia is interesting, and I would be remiss not to look at expansion opportunities there in due time.”
Keith Bloomfield will remain CEO of FWM, which last year acquired New York-based hedge fund firm Optima Fund Management.
This article originally appeared on Yahoo! Finance.
