Wealth Planning Industry Shakes Up with $5.6B Bordeaux Merger

Cresset Merges with Monticello Associates: Innovations in Financial Planning

Update Cresset's Strategic Move: Expanding Institutional Advisory Services Cresset, a prominent registered investment advisor (RIA) based in Chicago, has announced an ambitious merger with Monticello Associates, an institutional consulting firm managing $124 billion in assets. This significant transaction, slated for completion by year-end, will elevate Cresset's total assets under management (AUM) to nearly $200 billion while vastly enhancing its institutional advisory capacity. Founded in 1992, Monticello Associates is renowned for its service to a diverse clientele that includes foundations, endowments, family offices, and more. By integrating Monticello's team of 58 experts, Cresset aims to create an innovative platform that not only expands access to premier investment opportunities across various markets but also reinforces its vision of becoming a 100-year firm dedicated to serving families and institutions. Current Trends in RIA Institutional Consulting The merger aligns with a larger trend in the Registered Investment Advisory (RIA) industry toward institutional consulting. Many major players, such as Mariner Wealth Advisors, have made several moves in this direction, including the acquisition of firms like AndCo Consulting and Fourth Street Performance Partners, which alone added $104 billion in assets to Mariner's portfolio last year. This trend signals a growing recognition of the importance of institutional clients among RIAs. In a similar vein, firms like Hightower and SageView Advisory Group have made strategic acquisitions in recent months, reinforcing the competitive landscape for institutional advisory services and showcasing a potential shift in focus from purely retail clients to more complex institutional needs. The Evolution of Cresset's Vision Cresset was founded by Eric Becker and Avy Stein in 2017, initially focusing on managing their families’ assets. The firm's emphasis on providing personalized wealth management and boutique family office services reflects a thoughtful strategy aimed at high-net-worth clients, including industry leaders and multigenerational families. With this merger, Cresset is poised to enhance its offerings significantly, integrating Monticello's robust investment consulting expertise with its established wealth management services. The strategic alignment could mean not only expanded service capabilities but also a heightened competitive edge in attracting new clients within the institutional sector. Possible Repercussions for the RIA Market This merger also raises questions about the future of RIAs who choose to remain focused on individual client service without diversifying into institutional consulting. As the market continues to evolve, firms that do not adapt to expanding services may face challenges in retaining relevance and attracting clientele. Meanwhile, the growth in institutional consulting may lead to heightened competition, prompting innovation and improved services across the industry. As we observe this monumental merger, it serves as a reminder that adaptation and strategic partnerships are essential for RIAs looking to thrive in an increasingly complex financial landscape. A Look Ahead: The Future of Cresset and Monticello The impending merger between Cresset and Monticello Associates symbolizes a new chapter for both firms. With a shared commitment to integrity and innovation, their combined competencies are positioned to reshape advisory services in the financial sector. It remains to be seen how this merger will influence client relationships and the investment landscape more broadly, but one thing is certain: the RIA space is witnessing a notable transformation. Financial planners and wealth advisers should closely follow these developments as they may create new opportunities for enhanced client service delivery and business growth.