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Anchor Capital Advisors To Acquire Majority Stake From US Wealth Manager
Robbie Lawther
21 December 2017
Boston-headquartered Anchor Capital Advisors, an asset manager and wealth advisory firm, has agreed to buy back a majority ownership stake of its company from Boston Private, a wealth management, trust and private banking company. Managerial changes
After the transaction is completed, Anchor employees will own 70 per cent of the company compared to their current ownership of around 17 per cent. The remaining 30 per cent will be held by an affiliate of Lincoln Peak Capital, a long-term equity partner for high quality asset management firms, the firm said in a statement.
The transaction is expected to be completed in the first quarter of 2018 and is subject to obtaining client consents, Anchor Capital raising debt financing, and customary closing conditions.
The financial terms of the deal were not disclosed.
Anchor also said that it is making a few changes after the deal is completed. Chief executive and founder Bill Rice Sr. will become executive chairman.
Bill Rice Jr will become its new CEO, and will also continue in his current role as chief investment officer.
In addition, Mark Bergen will assume the role of president and continue in his role as chief operating officer.
Rice Jr. joined Anchor Capital in 2005 as an analyst and took over the CIO role in 2014. Bergen joined Anchor in 2013 as COO and chief financial officer.
"The repurchase of our company by management realigns our corporate strategic vision with our core value investing philosophy of investing in strong, undervalued companies that have active management control and majority equity participation," said Bill Rice, Sr. "We're excited about this next chapter in Anchor's history, especially with Bill, Jr. and Mark leading the next generation of our firm."
"We are confident in our future, and are excited to take back control. This deal enfranchises Anchor's loyal employees and provides total alignment with our clients," said Bill Rice, Jr., Anchor Capital's new CEO. "Anchor has always been a high performing organization, and this transaction ensures that a large number of Anchor employees have a vested interest in the future of the firm. I'm honored to lead Anchor's exceptional team and have never been more excited about Anchor's future."
Anchor Capital currently manages approximately $9 billion in assets for both individual and institutional investors across eight strategies and is headquartered in Boston, Massachusetts .