Sanctuary Wealth took a minority stake in Alluvial Private Wealth to provide Alluvial with capital for M&A, expanded capabilities and increased client support.
While Sanctuary has made minority investments in its partner firms in the past, this deal is the first completed transaction since the formalization of Sanctuary’s Strategic Capital Partnership program.
Sanctuary developed the Strategic Capital Partnership program to provide members of its network and other wealth management firms a way to raise strategic capital for growth and succession planning.
“The demographics of our industry provide an incredible opportunity for entrepreneurial, growth-minded financial advisors to build their own enterprise, and Sanctuary stands ready to be their strategic partner in this process,” said Sanctuary CEO Adam Malamed.
Alluvial Private Wealth is based in Marion, Ohio, with a branch office in Cleveland. It was founded by Lars Olson, Founder and Financial Advisor, and his partners, Lisa Bush and Manoj Sharma, after breaking away from Merrill Lynch and joining Sanctuary in 2021. The team offers holistic financial planning services to individual and non-profit clients.
Olson said, “Since launching our firm four years ago, we have achieved incredible organic growth. Expanding our partnership with Sanctuary will enable our team to expedite our M&A expansion efforts, enhancing our value, scale and ability to serve clients. The innovative new programs Sanctuary has developed will allow other firms like Alluvial to reach their goals.”
“We are thrilled to complete this minority investment as part of our ongoing partnership with Lars and the Alluvial team,” added Malamed. "They are betting on themselves, and we’re placing our chips alongside theirs.”
The Strategic Capital Partnership program complements the firm’s Enterprise Partner Program, led by Sanctuary’s Chief Growth Officer, Michael Longley. The Enterprise Partner Program educates and prepares partner firms to move from running a business to building an enterprise through targeted M&A activities.
Sanctuary President Vince Fertitta said, “Nearly half of our 120 Partner Firms are engaged in the Enterprise Partner Program. When they complete this rigorous program and earn their Enterprise Partner accreditation, they will be incredibly well-positioned to attract and secure meaningful inorganic growth opportunities. With access to capital through Sanctuary, they will have the means to successfully execute these deals, driving meaningful growth, enhancing services for clients and achieving their own professional goals of developing a lasting, independent wealth management enterprise.”
Sanctuary recruited Hillguard Wealth Management, with $700 million in assets, in January and NewSpring Wealth Partners, with almost $200 million in assets, earlier this month.
James Miller, Contributing Editor and Research Analyst at Wealth Solutions Report, can be reached at ContributingEd@wealthsolutionsreport.com.
