"Captrust Acquires $1.4 Billion RIA in North Carolina"

In the ever-evolving landscape of wealth management, Captrust Financial Advisors has made a significant move by acquiring Carolinas Investment Consulting, a Charlotte, N.C.-based wealth management firm overseeing more than $1.4 billion in assets. This strategic acquisition aligns perfectly with Captrust's broader growth strategy and its focus on sustainable scale, a concept that has been pivotal in the firm's journey from a $400 million asset base in 1997 to over $400 billion today.



The Strategic Move

Captrust's acquisition of Carolinas Investment Consulting is more than just a numbers game; it's a strategic move that enhances Captrust's asset base, supports its focus on sustainable scale, and reinforces its commitment to acting as a true fiduciary for its clients. The acquisition significantly boosts Captrust's assets under advisement, which is a direct result of its strategy to pursue "durable firms" looking to be acquired. This approach has been instrumental in growing Captrust's assets from $400 million in 1997 to over $400 billion today.

Benefits and Challenges

The acquisition presents both potential benefits and challenges. On the benefits side, the acquisition will significantly boost Captrust's AUM, expand its client base, and enhance its service offerings. The integration of Carolinas Investment Consulting's expertise and client base can provide more comprehensive solutions to clients, benefiting both new and existing clients. However, the integration process can be complex, involving the alignment of investment strategies, client management systems, and compliance procedures. Captrust will need to ensure a smooth transition and maintain high levels of client satisfaction to retain these assets.

Reflecting Industry Trends

This acquisition reflects several current trends in the wealth management industry, particularly the shift towards consolidation and the rise of independent Registered Investment Advisors (RIAs). Captrust's growth strategy, as described by Rush Benton, Senior Director of Strategic Growth at Captrust, involves pursuing scale in two distinct yet interconnected market segments: "sustainable scale." This approach allows Captrust to manage growth effectively while maintaining high standards of service and client satisfaction. The acquisition of Carolinas Investment Consulting is a strategic move that aligns with this growth trajectory, enabling Captrust to expand its asset base and client reach while maintaining its commitment to objectivity and personalized service.

The Future of Captrust

Looking ahead, Captrust's acquisition of Carolinas Investment Consulting is just the beginning. The firm is poised for further evolution, shaped by legislative shifts, economic conditions, and emerging trends in plan design and participant engagement. In 2025, Captrust expects continued growth in discretionary services, supported by increasing standards and industry advocacy. This includes the rise of 3(38) Investment Managers, 3(16) Plan Administrators, and Outsourced Chief Investment Officers (OCIOs), all of which are becoming more established in the retirement plan landscape.

Conclusion

In conclusion, Captrust's acquisition of Carolinas Investment Consulting is a strategic move that enhances its asset base, supports its focus on sustainable scale, and reinforces its commitment to acting as a true fiduciary for its clients. While the acquisition presents both benefits and challenges, Captrust is well-positioned to navigate these complexities and continue its growth trajectory. As the wealth management industry continues to evolve, Captrust's commitment to sustainable scale and objectivity will be key to its success.