The merger will further boost the investment capabilities of the combined firm in public and private markets

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Stanhope Capital Group signs all-stock merger deal with FWM. (Credit: Tumisu from Pixabay)

UK-based Stanhope Capital Group has signed a merger deal with FWM to create a $24.2bn global wealth management and advisory firm.

The financial terms of the deal were not disclosed.

However, FWM’s management will be issued Stanhope Capital’s shares, as part of the consideration.

Based in the US, FWM is the owner of Forbes Family Trust, LGL Partners, and Optima Fund Management.

Established in 2009, FWM handles $11.2bn for ultra-high net worth family offices and individuals, endowments, and foundations, which are mainly located in the US.

The company is engaged in wealth management and alternative asset services. Last year, it acquired Optima Fund Management, a New York-based hedge fund specialist.

Stanhope Capital, on the other hand, is currently handling $13bn in assets of private clients, charities, endowments, and other institutions across the world.

With offices in London, Geneva, and Paris, Stanhope Capital is engaged in providing wealth management, investment consulting, private investments, and merchant banking services.

Daniel Pinto, who founded Stanhope Capital in 2004, will be the CEO of the combined company, post-merger.

Pinto said: “This is a unique opportunity to create a truly global investment firm around the three core values which have defined our respective businesses since inception.

“Firstly, independence, which gives clients the assurance of conflict-free advice provided by true fiduciaries. Second, alignment of interests between clients and talented professionals who invest their personal wealth alongside them, a rare thing in our industry today.

“Lastly, creative thinking, based on an investment platform designed to give clients the flexibility to combine liquid, well-diversified portfolios with exciting opportunities in private equity, real estate and hedge funds.”

Combined entity will have expanded footprint in US and Europe

The combined company will have six offices across the world and a workforce of 135 people.

It will have an expanded geographic presence across the US and Europe. Its expanded investment team will have capabilities across multiple asset classes, which include listed equities and alternatives.

Post-merger, although Stanhope Capital and FWM will operate as a single company under the Stanhope Capital Group umbrella, they will retain their respective names.

FWM CEO Keith Bloomfield said: “It was mission critical that our clients be the prime beneficiaries of any business combination – and we are confident that this combination accomplishes that mission. The cultural, philosophical and investment fit between the two businesses are truly exceptional.

“As well as increasing our geographic scope, the merger will further enhance the combined firms’ investment capabilities in both public and private markets, with clients benefitting from local access to investment opportunities sourced by dedicated teams based in several of the world’s top financial centers.”

The deal is subject to the meeting of customary closing conditions and is likely to be completed in Q1 2021.