Fisher Investments buys Michigan wealth advisory

Thomas Coyle

28 January 2008

Asset manager says it expects to add more books to its private-client group. Direct-to-end-client asset manager Fisher Investments is officially in the running as an RIA aggregator. In that game it's up against purpose-built, private-equity backed rivals like Focus Financial Partners, WealthTrust and United Capital Financial.

In its first acquisition since publicizing its intention to buy wealth managers late in 2006, Fisher has acquired EconoStrat Advisory, a Bloomfield Hills, Mich.-based investment advisory.

"We've found that our acquisition approach resonates, particularly with independent RIAs without a home-grown solution to the inevitable client hand-off," says Luis Gutierrez, a senior v.p. on Fisher's M&A team. "Based on discussions we've had to date, we expect to be an active acquirer of RIA businesses in the coming year and beyond."

Exit strategy

Terms of Fisher's deal with EconoStrat weren't disclosed. In any case it's less a purchase EconoStat as a firm, which is no longer registered with the SEC as an RIA, than an acquisition of EconoStat's book of business. Those of EconoStrat's clients who make the move will become clients of Fisher's Private Client Group.

EconoStrat was founded in 1982. In last ADV filing with the SEC, it said it managed $58.3 million, mainly for high-net-worth clients.

Most RIA aggregators usually target bigger businesses. But then Fisher has said that it's looking primarily at RIAs with between $100 million and $500 million in assets under management as acquisition targets.

"Our consolidation strategy is consistent with investment accounts," according to EconoStrat's founder Bob Kennedy. "We actually transitioned our business sooner than we originally expected to capitalize on the tremendous opportunity that this transaction represents to our clients."

Woodside, Calif.-based Fisher manages over $45 billion in assets. -FWR

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