Rockefeller to Buy Silicon Valley Multi-Family Office
After months of hiring high-producing financial advisors for its private wealth brokerage business, Rockefeller Capital Management said Wednesday that it has turned to its family-office roots to buy a $2.3 billion-asset multi-family office in California’s Silicon Valley.
Financial Clarity Inc. will be the first family office Rockefeller has acquired since recapitalizing itself at the start of 2018. Terms of the deal, expected to close in the fourth quarter, were not disclosed.
Mountain View, Calif.-based Financial Clarity, founded in 1992 by Stan Young, counts executives of Apple, BlackRock, Google, Hewlett Packard, Morgan Stanley, and Motorola as clients, according to its website. With its addition, Rockefeller will oversee about $20.3 billion for family office clients, including its namesake founders.
The company is in talks with some other acquisition candidates, said Timothy O’Hara, president of Rockefeller’s global family office business, which has 20 advisors in nine offices. He is also eager to attract more individual advisors well-versed in taxes and “generational planning,” as well as in investment management.
“It’s very specialized and hard to do well, so it’s important that we assimilate with people that have experience doing that for the ultra-high-net-worth,” said O’Hara, who has hired six advisors since joining Rockefeller in May from Goldman Sachs’s Ayco workplace financial planning business for executives. At least two of the hires had been with Ayco.
O’Hara is part of a growing management and recruiting team that Rockefeller CEO and President Greg Fleming has been hiring since the beginning of the year. Many are veterans of Morgan Stanley Wealth Management and Merrill Lynch, where Fleming did stints as president.
Rockefeller’s private wealth unit, run by former Morgan Stanley technology executive Chris Randazzo, earlier this month hired two Morgan Stanley advisors in New York producing around $4 million. They were the ninth team to join since Rockefeller’s recapitalization from Viking Global Investors in early 2018.
Young, who will join Rockefeller as a managing director and advisor, was a private investment banker in Palo Alto before founding Financial Clarity, according to Financial Clarity’s website. He began his financial career as a trader and analyst with Philadelphia Life Insurance Company, and also has worked at fee-only financial planning firm Asset Management Group.
Wachtell, Lipton, Rosen & Katz served as legal advisor to Rockefeller. Shartsis Friese LLP was Financial Clarity’s legal advisor.