Stanhope, FWM merger to combine alts businesses

Stanhope Capital Group and FWM Holdings -- owner of Forbes Family Trust, LGL Partners and FoHF firm Optima Fund Management -- announced an agreement to merge their wealth management and advisory firms. The combined company will have $24.2 billion in client assets and 135 employees around the globe, with capabilities across multiple asset classes, including alternatives such as private equity, real estate and hedge funds. The merger is subject to customary closing conditions and is expected to close in the first quarter of 2021. The terms of the transaction have not been disclosed. Founded in 2009 by Keith Bloomfield, FWM currently oversees $11.2 billion for ultra-high net worth family offices and individuals, foundations and endowments located primarily in the U.S. from offices in New York City, Philadelphia and Palm Beach. In addition to its wealth management activities, FWM, which employs 50 people, is a recognized leader in alternative assets, having acquired New York-based hedge fund specialist Optima Fund Management in 2019. Optima was founded by Dixon Boardman, who began a legendary career investing in hedge funds in the 1980s. Together companies will continue to operate independently under the Stanhope umbrella, officials said adding that each entity would retain its brand. Founded in 2004 by Franco-British financier Daniel Pinto, Stanhope Capital currently oversees $13 billion for private clients, endowments, charities and other institutions across the globe. The firm, which employs 85 people from its offices in London, Geneva and Paris, is active in wealth management, investment consulting, private investments and merchant banking. Daniel Pinto has been appointed Chairman and CEO of the combined group. “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,” said Pinto. Those values are independence, alignment of interests and creative thinking based on an investment platform designed to give clients the flexibility to combine liquid, well-diversified portfolios with opportunities in private equity, real estate and hedge funds. FWM’s Bloomfield will continue as CEO of the firm and will be responsible for running the U.S. businesses. “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 benefiting from local access to investment opportunities sourced by dedicated teams based in several of the world’s top financial centers,” said Bloomfield. Bloomfield will join Stanhope Capital’s board of directors as vice chairman as well as the group’s executive committee. He will be joined on the board by Thomas H. Lee, the private equity pioneer. Stanhope’s Chief Investment Officer Jonathan Bell and a member of the board, will also become vice chairman and P. Scott Gregorchuk, founder of LGL Partners, will continue as Vice Chairman of FWM. In the context of the transaction, the management of FWM will receive Stanhope Capital shares as part of the consideration. Seward & Kissel LLP represented FWM Holdings in connection with this transaction. The Seward & Kissel team was led by partners Craig Sklar and Nick Katsanos and counsel Robert Chender.

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