Cresset Asset Management merges with Minnesota Familial richness of the meristem to form a multi-family office with more than $27 billion in assets under management, according to Dispatches.
Founded in 1993 by CEO Charlie Maxwell as Financial Services Advisors and renamed Meristem in 2003, the company oversaw $5.4 billion at the end of 2021, mostly for 388 wealthy families, writes Forbes. Meristem has offices in Minnesota, South Dakota, Florida and Arizona, according to the publication.
As part of the deal, Meristem’s 42 employees all join Cresset, writes Forbes.
Additionally, Meristem clients will be able to continue working with their current advisors, according to the publication.
“We were able to firmly state to our clients that very little would change in terms of relationship management,” Maxwell said, according to Forbes.
The companies did not disclose financial terms of the deal.
The addition of Meristem is Cresset’s second major contract after this one acquired the Atlanta-based $4.7 billion Berman Capital Advisors last September, writes the publication.
Cresset also increased his assets by poaching financial advisers from other firms.
In March, Cresset brought in several advisers from Bank of America Private Bank, JPMorgan Securities and Loyalty investments, as reported.
co-president of Cresset, Doug Reganwas a JPMorgan executive until 2017, and Cresset has attracted at least 10 advisers from the firm, according to Forbes.
In February, JPMorgan settled its 2019 lawsuit against Cresset accusing Regan of suing JPMorgan staff in breach of his contractual obligations with the bank, as reported.
With the addition of Meristem, Cresset will have more than 300 employees in 15 offices across the country, writes Forbes.
Meanwhile, about two-thirds of Cresset’s asset growth is due to appreciation and the direct addition of new customers, according to the publication.
It now serves more than 1,100 HNW customers, writes Forbes.
“The epiphany for me is that we’ve approached the size that we are, we’re able to be a much bigger player with managers,” Avy Stein, who co-founded Cresset in 2017 with Eric Becker to manage their own family’s money, said, according to the publication.
“If you invest money with someone, you’ll be able to get better terms or have a better opportunity to co-invest in unique things that they can drive, and that’s true at both on the public side and on the private side,” he added, according to Forbes.
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