Denver’s Northstar Investment Advisors aligns its future course with California firm – The Denver Post
Northstar Investment Advisors, which got its start in Denver in 1995, has joined Beacon Pointe Advisors, a much larger southern California wealth management firm.
Northstar, in a deal that closed Monday for an undisclosed price, is now Beacon Pointe Denver. It is bringing about $1 billion in client assets, connections to the Colorado community and the expertise of its six employees and three partners.
With the acquisition, Beacon Pointe, based in Newport Beach, will manage more than $20 billion in assets on behalf of 8,700 clients and grow to 23 offices.
Northstar, known for its dividend growth and digital stock strategies, can now directly offer its Colorado clients a broader array of financial services beyond money management, such as private equity investing and financial and estate planning, said Fred Taylor, a partner and co-founder of Northstar.
Beacon Pointe will also take on tasks that have become more complicated and expensive to deal with, such as regulatory compliance, human resources management and cybersecurity.
And while Northstar worked hard to reach $1 billion in client assets, doubling in size since 2014, the bar for what is required to remain competitive in the wealth management business also continued to move higher, toward the $10 billion to $20 billion range, Taylor said.
“$1 billion isn’t what it used to be,” said Taylor. “In order to survive in this business, you have to merge with larger players.”
Taylor, along with Northstar’s other two partners Bob Van Wetter and Charlie Farrell, will stay on to manage the Denver office. Farrell writes a column that runs once a month in the Sunday business section of The Denver Post.
“We are extremely excited to have a robust presence in the Denver marketplace. Fred, Bob and Charlie have built many long-lasting relationships throughout the entire state of Colorado and beyond, and we look forward to what their team will be able to do now powered by the resources of Beacon Pointe,” said CEO Shannon Eusey in a news release.
Taylor said women hold many of the top management posts at Beacon Pointe and half of the firm’s investment advisers are women, a rarity among advisory firms, even though women control about 54% of household wealth.
Beacon Pointe, founded in 2002, employs more than 260 people and works with institutions, defined contribution plans, high-net-worth individuals and families in areas such as investing, taxation, financial planning, divorce and estate planning.
Beacon Pointe is also known for its Women’s Advisory Institute which seeks to help women through major life transitions. The two firms share a commitment to giving back to the local community, which will continue in Colorado, Taylor said.
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