Private equity shop Flexpoint Ford says it’s taking a majority stake in an Ohio-based registered investment advisor firm.
Founded in 1989, Cleveland-based Clearstead Advisors oversees around $29 billion in client assets. The firm, which also has a Portland, Maine location, says that more than $10 billion of its assets came within the past five years through “strong organic growth and tuck-in acquisitions.”
The RIA’s more than 100 employees, including 40 employee shareholders, offer investment advisory services to foundations, hospitals and other institutions, according to Flexpoint. Clearstead also began offering tax and financial planning in 2011 and this year further expanded its services with the acquisition of a trust business, Flexpoint says.
The deal is expected to close before the end of the year, according to the firm.
The private equity investment will help Clearstead continue broadening its range of services as well as stimulate organic growth and strategic acquisitions, Flexpoint says.
“We are fortunate to have found a like-minded partner who supports our values and has a strong track record of driving success through partnership with management teams,” Dave Fulton, Clearstead's chief executive and chairman, said in a statement.
After the deal, the financial terms of which the companies didn’t disclose, current investor Rosemont Investment Partners will relinquish its minority interest in Clearstead. Clearstead’s management will stay on as “significant shareholders,” according to Flexpoint.
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