Home Wealth Management Slate Hill Companions Enters RIA M&A Market with XO Stake

Slate Hill Companions Enters RIA M&A Market with XO Stake

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Slate Hill Companions Enters RIA M&A Market with XO Stake

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Slate Hill Companions, a Dallas-based single-family-office-backed holding firm, has taken a minority stake in native registered funding advisor XO Wealth Administration.

Based in 2016 by Managing Director Matt Fuller, XO has $630 million in belongings underneath administration and is among the many fastest-growing RIAs in Texas. XO offers custom-made monetary planning and funding administration for entrepreneurs, company executives and different rich people.

In line with Fuller, the partnership is motivated by the altering wants of his purchasers, together with elevated curiosity within the non-public fairness area and a need for extra household workplace companies. A number of present purchasers who personal companies are on the cusp of promoting and may have liquid belongings to handle.

“That is actually going to have the ability to assist us take that subsequent step by way of household workplace capabilities,” he stated. “And, we have already had glorious deal circulation within the non-public fairness area that simply obtained an entire lot higher from our partnership with Slate Hill.”

It’s Slate Hill’s first funding within the wealth administration sector since its 2020 launch, however it might function a prelude to additional offers within the coming months and years, based on Managing Companion Joe Valdman. The agency has spent two years investing in area of interest asset managers, constructing out a handful of trade traded funds and launching an end-to-end turnkey ETF platform. Now, Valdman believes Slate Hill can be positioned to supply alternatives for middle-market wealth administration companies, like XO, in search of household workplace capabilities, entry to non-public investments and progress capital.

He additionally sees the evolving wealth administration area as a sexy funding alternative for his rising agency and the unnamed household behind it. “We like this area lots,” he stated. “This was our first foray and we’re grateful that Matt and his staff wished to associate with us.”

Slate Hill plans to focus on native advisors too small to be on the radar of enormous aggregators and supply them with a platform for progress. Ideally, stated Valdman, all acquired companies could be rolled up underneath the XO model, however that’s not a stipulation. Acquisitions can be tailor-made to every agency and all fashions are ostensibly on the desk.  

“We do not have one purchase field,” he stated. “We do not have one mannequin; we’ll customise it to what advisors and advisory practices need.”

There may also be a give attention to Texas-based companies, however there may very well be exceptions. “That does not preclude us from pursuing or contemplating alternatives outdoors of this state, however I believe we would prefer to have a geographical footprint,” Valdman stated.  

For his half, Fuller sees a chance to develop XO right into a multi-billion-dollar agency over the subsequent 5 years however stated it’s necessary to take care of agility and an “entrepreneurial tilt.”

“I believe that the trade’s making a mistake,” he stated. “It appears to me that numerous these bigger aggregators are turning the mannequin again towards wirehouses and I do not assume that that is the suitable method to go. We are able to keep some entrepreneurial capabilities and the power to maneuver rapidly and benefit from alternatives, whether or not they’re public markets or non-public markets, and I believe that that is going to serve us and our purchasers and future advisors that need to be part of us to come back into that sort of an atmosphere.”

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