Boston Private increases stake in West Coast shop

Thomas Coyle

7 August 2006

Holding company buys another installment of Bingham Osborn and Scarborough. Seeking a firmer foothold in San Francisco's lucrative wealth-management market, Boston Private Financial Holdings has upped its stake in Bingham Osborn & Scarborough to 49.7% from 40%. The Boston-based wealth- and asset-management holding company bought 20% of BOS early in 2004, another 10% in August of that year and another 10% a year later.

Under an agreement between the firms, Boston Private may buy up to 70% of BOS -- a fee-only investment advisory with no proprietary product -- over the next three years.

Peer network

"Incremental ownership of BOS not only enhances our position in the San Francisco market, but also increases our opportunities for fee income revenue," says Robert Whelan, Boston Private's CFO. "This transaction will not change our current reporting, and we will continue to report on an unconsolidated basis with regards to BOS."

The tie with Boston Private has been beneficial to his firm as well, according to Bill Urban, a co-managing principal of BOS. "We have shared insights, opportunities, and best practices Boston Private and the other firms in Wealth Management group," he says. "It is a terrific peer network."

BOS, which has been in business for about 20 years, manages about $1.5 billion in assets, mostly for individuals and trusts. The firm favors a passive approach to investment management and usually requires a minimum investment of $2 million. BOS has an office in Menlo Park, Calif., in addition to its headquarters in San Francisco.

Boston Private has 13 operating affiliates that focus on private banking, investment management and financial planning in the Pacific Northwest and California, Florida, New York and New England. --FWR