Pathstone Expands its Reach with Acquisition of Crestone Capital

Pathstone, a leading registered investment advisory firm specializing in family-office services for ultrahigh net worth clients, has announced its acquisition of Crestone Capital. This strategic move is expected to greatly enhance Pathstone's presence in the ultrahigh-net-worth market segment.

By bringing Crestone into its fold, Pathstone aims to leverage the firm's expertise in advising approximately 150 families with over $3 billion in client assets. This acquisition will significantly increase Pathstone's total assets under advisement and administration to an impressive sum exceeding $100 billion.

CEO and co-founder of Pathstone, Matt Fleissig, highlighted several factors that contributed to Crestone's appeal for this acquisition. He cited the experienced staff and leadership within Crestone, as well as the firm's strategic locations in Boulder, Colo., and Denver – both vibrant markets experiencing rapid growth.

Founded in 1991 by Eric Kramer, Crestone has grown steadily over the years. As part of the acquisition, Kramer will become a member of Pathstone's esteemed CEO council and also serve as the chief investment officer. Additionally, Crestone President Matt Wiles will join Pathstone's regional leadership team. With over 50 highly skilled employees and offices in Boulder, Colo., Denver, Austin, and Los Angeles, Crestone has established a strong presence across multiple markets.

Pathstone has not disclosed the specific terms of the deal at this time.

Given Pathstone's commitment to providing exceptional services to ultrahigh net worth clients, this acquisition of Crestone Capital represents a strategic step toward achieving their growth objectives. With an expanded reach and an increased portfolio of assets under advisement and administration, Pathstone is well-positioned to continue serving its clientele with the utmost dedication and expertise.

Pathstone: A Growing Powerhouse in the Family Office Space

Pathstone, a renowned family-office services provider based in Englewood, N.J., has shaped its presence in the financial industry since its establishment in 2010. With an initial clientele of 19 families, the firm has expanded significantly and now serves over 600 families, each with an impressive average net worth of $100 million.

To ensure nationwide accessibility, Pathstone operates 20 offices strategically located throughout the country. In its continuous efforts to broaden its scope, the company has undertaken strategic acquisitions. Notably, it acquired Veritable, a multifamily office situated in suburban Philadelphia, demonstrating its commitment to bolstering its reach.

Pathstone's prowess in the field is evident as it secures the 26th position on The Top 100 RIA Firms for 2023. The firm garners support from esteemed private-equity firms such as Lovell Minnick Partners and Kelso & Co., further amplifying its standing in the industry.

Speaking about the vast potential within the ultrawealthy sector, which remains underserved and fragmented, Pathstone's CEO, Fleissig, highlights the multitude of growth opportunities awaiting exploration. By capitalizing on their collective strength, firms like Pathstone can offer an extensive range of services while delivering superior pricing options compared to standalone family offices. As part of its commitment to progress, Pathstone continuously enhances its capabilities and invests in cutting-edge technology.

"We have expanded our trust company capabilities and introduced direct indexing two years ago. We are also exploring options to provide additional legal and cyber services. Our ultimate goal is to offer our esteemed clients a comprehensive range of services, all under one roof," explains Fleissig.

Pathstone's dedication to excellence and ambition to establish a national brand is evident in its continuous growth and commitment to providing top-notch service to its wealthy clientele. With its unwavering focus on expansion, enhanced technology, and a comprehensive suite of services, Pathstone is undoubtedly poised to shape the future of family offices.