Caprock CEO: ‘We Never Pursued M&A Just For The Sake Of Growth’

UHNW Multi-Family Office’s First Acquisition Adds $2.2 Billion Chicago Firm
Greg Brown, Co-CEO, Caprock; Bill Gilbert, Co-CEO, Caprock
Greg Brown, Co-CEO, Caprock; Bill Gilbert, Co-CEO, Caprock
Michael Madden, Contributing Editor & Research Analyst, Wealth Solutions Report
Michael Madden, Contributing Editor & Research Analyst, Wealth Solutions Report

Recently, Caprock, a privately held, multi-family office RIA serving ultra-high net worth (UHNW) clients, announced the acquisition of Grey Street Capital, a Chicago-based boutique advisory firm with $2.2 billion in client assets. Founded in 2005, Caprock acts as an outsourced CIO and CFO for 300 wealthy families.

The deal marks Caprock’s first acquisition as it seeks to drive growth and enhance its bespoke services to clients. Caprock will have more than $11 billion in assets under advisement when the transaction closes. It has locations in Boise, Idaho; Seattle; San Jose, California; Newport Beach, California; Park City, Utah; New York; and Austin.

WSR caught up with Caprock Co-CEOs Greg Brown and Bill Gilbert to talk about the acquisition and what it means for the firm. Here are the highlights.

WSR: After nearly 20 years in business, why is now the right time for an acquisition?

Greg Brown: In 2021, after 18 years of organic growth, Caprock started looking to align with firms that share similar values and share a passion for delivering a client-first approach to wealth management. With this acquisition, we found the right partner in Grey Street Capital. Our firms are culturally aligned and have similar business models, expertise and investment philosophies.

We’ve always been focused on strategic growth without compromising our core values or level of service, so we never pursued M&A just for the sake of growth or scale.

We’re focused on providing exceptional services to a select group of UHNW families as opposed to doing very little for many clients, like some of our peers in the brokerage industry.

WSR: How will the acquisition impact both firms?

Brown: This transaction will benefit clients of both firms with additional infrastructure, exceptional team members and complimentary investment access. Caprock comes with decades of experience cultivating deep access to private market opportunities that are generally difficult to source.

Meanwhile, the acquisition increases our scale and allows us to serve clients in new markets while adhering to our steadfast, client-first approach to wealth management, a contrast with others who tend to limit themselves to model portfolios filled with liquid assets.

Going forward, we’ll continue to focus on delivering bespoke wealth management services and investment opportunities. And with a presence in complementary markets, the acquisition created an opportunity to scale our collective geographic footprint.

WSR: What does the future hold for Caprock in terms of additional M&A?

Gilbert: Whether it’s this acquisition or any future transactions, the most important thing is that the quality of the service our clients experience is never compromised. Instead, our goal is to enhance it. To that end, we will continue to be intentional about growth to ensure we always maintain alignment between our firm, our team and the clients we serve.

This acquisition is likely the first of many. At the same time, it sets a high bar for finding future partners and demonstrates our commitment to growing organically while maintaining the integrity of the services we provide.

Michael Madden, Contributing Editor & Research Analyst at Wealth Solutions Report, can be reached at mmadden@wealthsolutionsreport.com.

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