NEW YORK, April 11, 2024 (GLOBE NEWSWIRE) -- Arax Investment Partners (“Arax”), a premier wealth management platform company backed by RedBird Capital Partners (“RedBird”), today announced the addition of U.S. Capital Wealth Advisors (“USCWA”), an independent hybrid wealth management firm headquartered in Houston, Texas, managing approximately $9 billion in AUM/A across over 5,500 clients and 62 advisors.
USCWA has a strong footprint in Texas across Houston, Austin, Dallas and Georgetown, as well as offices in New York City and Massachusetts. The firm brings meaningful scale, robust operating infrastructure and full-service wealth management capabilities, including financial planning, investments, and insurance to support high-net-worth and ultra-high-net-worth clients, to the Arax platform. In only 18 months, Arax’s boutique wealth management platform has grown to 120 advisors serving over 12,000 clients that represent more than $16 billion of AUM/A.
“USCWA was founded on the same principles as Arax, enabling financial advisors to provide expert, holistic solutions to clients that combine the personal touch of a regional firm with capabilities available to larger, national institutions,” said Haig Ariyan, Chief Executive Officer of Arax. “Bringing in this multi-custodial advisory platform along with the capabilities of U.S. Capital’s broker-dealer will create further opportunities for advisors and their clients across the Arax platform.”
U.S. Capital Advisors, co-founded by Pat Mendenhall and Dave King, combined its large advisory wealth business with Legacy One Financial in 2021 to form USCWA under the leadership of Jim Fortescue, Pat Mendenhall and Dave King. In joining Arax, USCWA will maintain their branding, core advisor and client-facing operations, becoming an key pillar of the Arax platform.
Arax will continue to operate as a multi-boutique platform providing shared services across back-and-middle office functions, as well as enhancing organic and inorganic growth through new product and service capabilities, cross-selling and supporting M&A sourcing and execution for key teams at USCWA, Ashton Thomas, and the other advisory firms already partnered on the platform.
“We strive to provide clients and advisory teams the sophisticated financial support, direction and solutions they need with an unrivaled client-centric experience. We are excited to continue this core focus as part of the Arax team,” said Pat Mendenhall, Co-Managing Partner at USCWA. “Arax's partnership strategy and flexible platform set it apart in the market and will support our team in delivering superior results for clients.”
John Paul Dejoria, said, “I have enjoyed being on the inside of the independent wealth industry at US Capital Wealth as a client first and then a partner and owner. As always, the goal of entrepreneurs should be to find the right partners for the next stage of scale and growth. Our team is so proud and confident that RedBird, Arax and their leadership will increase shareholder value and most importantly take care of our many amazing clients, wonderful employees and their talented advisors.”
Mr. Dejoria, one of the country’s most renowned entrepreneurs and philanthropists, was a primary investor in Legacy One, and will remain a significant shareholder in USCWA.
Advisors
UBS Investment Bank and TD Securities served as financial advisors to Arax on the transaction. Fried Frank acted as legal counsel to Arax.
About Arax Investment Partners
Arax Investment Partners is a rapidly growing, multi-boutique wealth management platform making strategic control investments in best-in-class operating companies in partnership with their founders and management teams. Arax is focused on making strategic investments and supporting RIAs, hybrid wealth managers, and advisor teams seeking a new growth platform to scale their businesses.
Arax enables its partners and affiliates to be entrepreneurial and focus on delivering industry-leading financial services to their clients. Firms within the Arax network benefit from a seasoned management team with a successful track record of scaling wealth platforms, M&A experience, capital sourcing capabilities and company-building expertise backed by a proven investor with an extensive network, RedBird Capital Partners. Our experienced leaders, multi-platform structure and growth equity partnership create a unique advantage for our partners. For more information, please go to www.araxpartners.com.
About U.S. Capital Wealth Advisors LLC
Based in Houston, Texas, with additional offices in Austin, Dallas, Georgetown and New York City, U.S. Capital Wealth Advisors is the new, fee-based, wealth management advisory platform launched in May 2021 through the strategic combination of the advisory businesses of U.S. Capital Advisors and Legacy One. USCWA’s mission is to combine the deep experience and expertise of its financial advisor teams with the significant breadth and depth of its investment strategies and solutions to deliver an exceptional client experience. For additional information, please visit: https://uscwealth.com/.
About RedBird Capital Partners
RedBird Capital Partners is a private investment firm that builds high-growth companies with strategic capital solutions to founders and entrepreneurs. The firm currently manages $10 billion in assets on behalf of a global group of blue chip institutional and family office investors. Founded in 2014 by Gerry Cardinale, RedBird integrates sophisticated private equity investing with a hands-on business building mandate that focuses on three core industry verticals – Financial Services, Sports and Media & Entertainment. Over his 30-year investment career, Cardinale has partnered with founders and entrepreneurs to build some of the most iconic growth companies in their respective industries. For more information, please go to www.redbirdcap.com.
Contact Information
Media
Dan Gagnier
Gagnier Communications
RedBird@gagnierfc.com
