Investment funds managed by Morgan Stanley Capital Partners (“MSCP”), the middle-market focused private equity team at Morgan Stanley Investment Management, have acquired RowCal. MSCP is partnering with the current management team led by CEO Jake Christenson, who founded the business in 2018, the firm said in a press release.
Headquartered in Minneapolis, Minn., RowCal is a provider of outsourced homeowner association (HOA) property management services, offering a comprehensive solution to better manage and maintain HOA communities. RowCal currently serves the Minnesota, Colorado and Texas markets and has scaled rapidly through market-leading organic growth and strategic add-on acquisitions.
The company’s differentiated approach, which leverages advanced technology and an integrated care team to enhance the customer experience, has enabled RowCal to quickly emerge as a leading and trusted provider in the space since inception.
Adam Shaw, Managing Director and Head of Business Services at MSCP, said: “We are delighted to partner with Jake and the RowCal team as they continue their mission of building a leading HOA property management provider. RowCal’s impressive growth trajectory coupled with a client-focused culture are a testament to what the management team has built since its founding. We look forward to working together to advance RowCal’s vision to serve its client base and pursue continued expansion of the company through robust organic growth and M&A.”
MSCP’s acquisition of RowCal is consistent with the team’s focus on target subsectors where MSCP has deep institutional knowledge and domain expertise. It is MSCP’s third acquisition in 2023 following those of Apex Companies and Allstar Services.
“Since founding RowCal in 2018, the company has experienced strong growth through our focus on delivering a high-quality experience to HOA managers. We believe our partnership with MSCP will enable us to continue our national buildout and growth trajectory by investing in the capability set to drive organic growth and expand our geographic footprint,” said Jake Christenson, CEO of RowCal.
Debevoise & Plimpton served as legal counsel to MSCP. TD Cowen and William Blair served as financial advisors to MSCP. Robert W. Baird & Co served as financial advisor to RowCal.
The Siegel Group, a real estate investment and management company, announced that it had acquired the former Stay Suites of America located in Orange Park, Florida.
The property, which suffered from deferred maintenance and management issues, was purchased in an all-cash transaction for $7 million and quickly closed in under 30 days. This acquisition increases the number of Siegel Suites® and Siegel Select® properties throughout the United States to 61 and marks the brand’s first location in the Florida market. This location is in addition to the company’s significant presence throughout Nevada, New Mexico, Arizona, Texas, Tennessee, Louisiana, Mississippi, Alabama, Ohio, Oklahoma, South Carolina, and Georgia.
The Siegel Group, which operates a sizable commercial real estate portfolio consisting of apartments, extended-stay hotels, flexible-stay apartments, hotels, retail, office, and development projects, will be operating the property under its successful Siegel Select® brand which provides the option of either short-term daily stays or longer term extended-stay accommodations.
The property, which will be renamed Siegel Select Orange Park, is located directly off Interstate 295 and in close proximity to Downtown Jacksonville. Built in 1998, the 3-story exterior corridor property totals approximately 57,060 square feet and is comprised of 144 units that are all equipped with kitchenettes. The Siegel Group will be making a number of improvements including updating flooring and cabinetry, as well as installing new furniture and appliance packages in all units. Additionally, the exterior of the property will be painted along with other cosmetic upgrades, including branding and signage that are characteristic of the Siegel Select brand.
Chigozie Amadi, Chief Financial Officer of The Siegel Group stated: “We have been looking for the right opportunity to enter the Florida market and are excited to introduce our Siegel Select brand to Orange Park. Now that we have established a presence in this new market, we plan to further expand our Siegel Select and Siegel Suites brands throughout the state.”
Dynasty Financial Partners announced the launch of Dynasty Investment Bank.
Going forward, the firm will leverage its M&A and capital strategies capabilities to offer buy-side and sell-side advice for independent wealth management firms inside and outside the Dynasty Network as well as for other types of firms that are in need of independent and objective strategic advice in the wealth and asset management industry.
“At Dynasty, we are facing substantial demand for M&A and investment banking services from advisors in our Network and outside our Network. Whether a CEO desires to acquire an RIA or tuck-in a group of advisors, want to explore selling their business, or are seeking a valuation to understand the value of their equity, RIA management teams seek high quality and objective advice. With our deep expertise and years of experience working with hundreds of leading advisors, we are well-positioned to offer RIAs a wide range of investment banking capabilities in this ever-complicated market” said Shirl Penney, CEO of Dynasty Financial Partners.
According to Harris Baltch, Head of Dynasty Investment Bank, “The independent wealth management industry has accelerated its pace of consolidation and maturation over the last decade. The headwinds of aging advisors, the valuation gap of succession and a higher interest rate combined with the influx of different capital providers and a multitude of business models will create a long runway for consolidation in the years to come. We believe this will create significant opportunity to provide independent, objective advice to CEOs, management teams and investors to execute M&A from start to finish.”
The Dynasty Investment Bank employs a team of seasoned investment bankers, former private equity professionals and other former Wall Street executives that have deep transaction experience advising founders, CEOs and other C-suite professionals on M&A, capital structure optimization and succession. The firm cumulatively has professional experience of more than 100 years and has advised on over $25 billion in transaction value across dozens of advisory mandates.
Over the last twelve months, Dynasty has advised on over 14 transactions including the recent announcement by DayMark Wealth Partner’s tuck-in of a $450 million team and Americana Partners’ tuck in of a $700 million team from major wirehouses in the United States.
Harold Williams and George Williams announced that they have partnered with Dynasty Financial Partners to launch a newly independent firm called Precedent Wealth Partners.
Based in San Antonio, Texas, Precedent Wealth Partners will also introduce a unique program that enables clients to share in the success of the firm through a fee-rebate program called ‘WillShare’. They plan to open a Houston office in August.
“We launched Precedent Wealth Partners largely because we want to partner with our clients by creating an advisory entity that cannot easily be sold. We want our clients to feel they can count on our permanence and alignment with them,” said Precedent Wealth Partners’ co-founder Harold Williams. “Our WillShare program aligns the clients’ interests with that of the owners, as we plan to share 33% of our distributable after-tax net income with our clients, via fee credits every year. We don’t know of any firms out there that are doing anything like this – it’s a new precedent being established in the wealth management marketplace. We’re proud of what we’re doing, and we’re excited to get going.”
The team previously managed over $1 billion in assets at Linscomb & Williams, a Houston-based wealth management firm named to Barrons Top 100 in the most recent release.
Mr. Williams added, “We look to expand our message and grow organically rather than focus on growth through acquisition. All too often, RIAs launch and then begin a “race to sell” within the next 5-10 years, whether to private equity, a bank, or other buyers. This may not work out so well for the clients. We want to be different: we want our clients to feel they are treated like fellow-owners. Our WillShare program will foster that feeling and lay the foundation for an enduring firm which they can count on to stay committed to its principles for many years to come.”
“We welcome Harold, George and the whole Precedent Wealth Partners team to the Dynasty Network and we look forward to working with them in building out their firm,” said Shirl Penney, CEO of Dynasty Financial Partners.
The name ‘Precedent’ speaks to the firm’s passion for setting a new precedent in the field of financial advice. Precedent Wealth Partners is in the unique position of benefitting clients with a share of their after-tax profits.
Precedent Wealth Partners works with clients in the areas of investment management, wealth planning, estate planning, tax strategy, insurance/risk management, and retirement planning.
Franklin Templeton announced the hiring of Damian Zamudio, as Vice President Offshore Sales Executive, to further develop and expand its offshore business with clients in New York City and the greater Northeast.
Based in New York, Zamudio reports to Marcus Vinicius Goncalves, CFA, Head of Americas Offshore Sales.
“Damian brings two decades of wealth and asset management experience to his new role, where he will be focused on providing an exceptional client experience,” said Goncalves. “We continue to be focused on offering clients a broad range of investment opportunities and differentiated capabilities, including alternatives, short duration fixed income and income solutions, to meet their needs in this market environment.”
Zamudio previously served as Regional Sales Manager International at abrdn Plc, where he spent more than 10 years supporting all aspects of the sales and business development life cycles across the Americas offshore markets. He was also a Vice President at BlackRock, where he was responsible for sales of a wide variety of sophisticated solutions and platforms tailored for the private bank and international clients. In addition, he was an Assistant Vice President at Merrill Lynch Wealth Management, where he consulted domestic and international financial advisors.
Zamudio holds a Bachelor of Arts from San Diego State University, with a major in International Business.
Banco Santander is to appoint Christiana Riley as regional head of North America.
Ms. Riley will join the bank on 1 October, subject to regulatory approval, and will be responsible for all the bank’s businesses in the US and Mexico, with the respective country heads, Tim Wennes and Felipe García Ascencio, reporting to her.
She will be a member of the group management team and report to the group’s CEO, Héctor Grisi, who was the regional head for North America until he was appointed to his current role on 1 January 2023.
Ms Riley joins Santander from Deutsche Bank, where she was a member of the management board having held several leadership roles over the past 17 years in both Europe and the Americas.
She was most recently regional CEO for Deutsche’s business across the Americas, based in New York, and before that she was chief financial officer and co-CEO of Corporate and Investment Banking (CIB). Prior to joining Deutsche, Ms. Riley worked at McKinsey & Company in Frankfurt and Greenhill & Co in New York and Frankfurt.
She is a graduate of Princeton University and the London Business School.
Santander executive chair, Ana Botín, said, “I am delighted that Christiana will be joining Santander to lead our team in North America. She has an outstanding background and a strong track record and I’m confident she will play an important role as we continue to support our customers and leverage the collective strength of the group across the region, building on the outstanding progress Tim and Felipe have already made.”
Santander serves 25 million customers across the US and Mexico, with c.45,000 employees and 1,900 branches. In 2022 the North America region generated 25% of group underlying profit with an adjusted return on tangible equity of 20.5%.
Bolton Global Capital announced the hiring of Enrique Ortega as financial advisor.
Mr. Ortega has more than 15 years of experience in portfolio management and investment analysis serving international clients.
Prior to joining Bolton Global, Mr. Ortega worked as a Senior Wealth Advisor at Citi Global Wealth Management, where he maintained a book of over $200 million in assets under management for clients from across Latin America.
Before joining Citi in 2013, he worked for Bank Leumi, EFG Capital International Corp and Banco Pichincha.
“Having known Enrique for many years, I’ve always admired his professionalism and commitment to his clients. Bolton Global Capital is thrilled to have Enrique join our team. His proven success and experience will be a valuable asset for the future growth of our organization” said Michael Averett, Bolton’s Head of Business Development.
In addition to a Master of Business Administration from the University of Miami, Mr. Ortega holds a Bachelor’s degree in Economics and Finance from Florida International University.
Mr. Ortega will be based out of Bolton’s Miami office at the Four Seasons Tower in Brickell Avenue.
The Federal Reserve Board announced its approval for UBS Group AG, of Zürich, Switzerland, to acquire the U.S. subsidiaries of Credit Suisse Group AG, of Zürich, Switzerland.
The application was submitted in connection with UBS GroupAG’s acquisition of Credit Suisse Group AG.
In connection with the proposal, UBS has committed to provide the Board with an implementation plan for combining the U.S. business and operations of UBS and Credit Suisse, which will be updated quarterly.
The implementation plan will address UBS’s obligations to comply with more stringent enhanced prudential standards, including liquidity standards.
Pressure from the Swiss government, which went so far as to contemplate the nationalization of Credit Suisse, brought about an agreement as swift as it was historic in Swiss international banking: UBS agreed to buy Credit Suisse for $3.23 billion on Sunday, March 19.
The Securities and Exchange Commission charged crypto asset trading platform Bittrex, Inc. and its co-founder and former CEO William Shihara for operating an unregistered national securities exchange, broker, and clearing agency.
The SEC also charged Bittrex, Inc.’s foreign affiliate, Bittrex Global GmbH, for failing to register as a national securities exchange in connection with its operation of a single shared order book along with Bittrex.
Since at least 2014, Bittrex has held itself out as a platform that facilitated buying and selling of crypto assets that the SEC’s complaint alleges were offered and sold as securities. From 2017 through 2022, Bittrex earned at least $1.3 billion in revenues from, among other things, transaction fees from investors, including U.S. investors, while servicing them as a broker, exchange, and clearing agency without registering any of these activities with the Commission.
The complaint further alleges that Bittrex and Shihara, who was the company’s CEO from 2014 to 2019, coordinated with issuers who sought to have their crypto asset made available for trading on Bittrex’s platform to first delete from public channels certain “problematic statements” that Shihara believed would lead a regulator, such as the SEC, to investigate the crypto asset as the offering of a security.
For example, in an effort to avoid regulatory scrutiny, before Bittrex would make an asset available on its platform, Bittrex and Shihara instructed issuer-applicants to delete statements related to “price prediction[s],” “expectation of profit,” and other “investment related terms.”
“Today’s action, yet again, makes plain that the crypto markets suffer from a lack of regulatory compliance, not a lack of regulatory clarity,” said SEC Chair Gary Gensler. “As alleged in our complaint, Bittrex and issuers that it worked with knew the rules that applied to them but went to great lengths to evade them by directing issuer-applicants to ‘scrub‘ offering materials of information indicating that certain crypto assets were securities. Further, Bittrex, as alleged, failed to register and comply with U.S. securities laws as an exchange, broker-dealer, and clearing agency. Cosmetic alterations did nothing to change the underlying economic realities of the offerings and Bittrex’s conduct. Today we’re holding Bittrex accountable for its non-compliance.”
The SEC’s complaint, filed in the U.S. District Court for the Western District of Washington, alleges that Bittrex and Bittrex Global should have registered as an exchange because they brought together, using a shared order book, the orders for securities of multiple buyers and sellers using established, non-discretionary methods under which such orders interacted, and the buyers and sellers entering such orders agreed to the terms of a trade.
The complaint further alleges that Bittrex should have registered as a clearing agency because it acted as an intermediary in making payments and deliveries upon matching sell and buy orders and maintained custody of customer assets. Finally, the complaint alleges that Bittrex should have registered as a broker because it regularly engaged in the business of effecting transactions for the accounts of others in crypto assets that were offered and sold as securities.
Vince León, Senior Vice President, Regional Director for the US offshore Market at Voya IM
Voya Investment Management (Voya IM) announced that it has hired Vincent Leon as a senior vice president, Regional Director for the US offshore Market. Leon is based in Miami and is responsible of South Florida international offices of broker-dealers, wire-houses and RIAs.
Leon reports to Alberto D’Avenia, managing director, head of U.S. Offshore Sales. Leon joins Samantha Muratori (NYC/Texas) and Joe Arrieta (California and PR) on the team.
“We are excited that Vincent, a renowned professional of the US offshore community, is joining us; the US non-resident business market in general, and Miami in particular, is experiencing significant growth and features a high degree of complexity and specialization. As such, asset managers need to provide advisors and gatekeepers with top-notch investment solutions and professionals able to promote them with a holistic, consultative approach,” said D’Avenia.
Prior to joining Voya, Leon was director, Offshore Advisory Channel at Thornburg Investment Management where heled UCITS sales & distribution in the Americas working along with fund administration, operations, legal, & marketing teams. Also distributed SMAs and closed-end funds to International Financial Advisors.
