Third Seven Capital Advisors Reels In Boston Family Office
New York-based RIA Third Seven Capital Advisors has added another firm to its roster, this time from the family office realm.
SB Investment Partners of Boston, a non-commercial multifamily office with $575 million under management, will use TSCA’s operational infrastructure and due diligence to help it grow as a commercial wealth management practice for ultra high net worth families.
In mid-February, TSCA added its first practice, Synergy Advisors Group of Oklahoma City, which manages about $200 million.
Shuvam Bhaumik, managing director and founder of SB Investment Partners, says he signed on with TSCA for a couple of reasons.
First came convenience. "The idea of forming my own RIA" while "building out our multifamily office platform" struck Bhaumik as "a lot to take on."
But Bhaumik, who also runs the residential real-estate investor Capital Investors, says he was also motivated to link his five-year-old family office with TSCA to get at private investment opportunities through Third Seven Capital, an investment bank and TSCA’s corporate parent.
That doesn’t surprise Kristi Kuechler, a consultant on investor behavior with the Family Office Exchange. Her research indicates super-rich families are getting tired of so-so returns on increasingly passive and commoditized investment vehicles and concepts. "Even asset allocation feels like another commodity when an investor can go online and in 90 seconds a Nobel Prize winner is going to build you an asset allocation complete with tax-loss harvesting," she tells FA-IQ.
As a result, many of these families -- perhaps harkening back to the entrepreneurial origins of their wealth -- "are asking for firms to take a fresh approach to incorporating direct investments."
Adds Kuechler: "Access to private investments is a top draw" for family offices and the centa-millionaires who rely on them.
TSCA president Amit Dogra says its message -- predicated on "bringing the excitement of investing ideas back into play" through "curated direct investments" -- resonates with family offices "because it’s simple and direct." So much so, in fact, the firm’s "pipeline" of prospective joiners has doubled to $2 billion in assets under management in less than a month.
Meanwhile, Dogra says TSCA is already three-quarters of the way to its AUM goal of $1 billion for this calendar year.
TSCA is keen to add FAs from all channels, and its early success in the esoteric world of family offices is reflected in other recent activity. In January, high-end RIA Signature Family Wealth Advisors of Norfolk, Va., acquired Richmond, Va.-based Triad LC, a noncommercial family office.
And, backed by a newish infusion of private money, Rockefeller Capital Management, a firm linked to the famous Rockefeller fortune, is -- like TSCA -- gearing up to add family offices and other firms, with the lofty ambition of building its AUM base from under $20 billion now to $100 billion by 2023.
But Kuechler cautions against trying to discern a trend toward consolidation among family offices -- whose exact number is sketchy and whose operational look and feel run the gamut from private banks and hedge funds to bookkeeping departments in the companies that engendered the fortunes in play.
"You know the old saying," says Kuechler. "If you’ve seen one family office, you’ve seen one family office."