Caprock, a Boise, Idaho–based, private equity–backed multi-family office with $9 billion in assets under advisement, announced its acquisition of Chicago-based boutique investment firm Grey Street Capital.
This was Caprock’s first ever acquisition, and it’s part of a larger move by the family office RIA to increase its strategic growth through acquisition as well as increase its bespoke offerings to clients, said Caprock.
Grey Street Capital specializes in building custom portfolios for high-net-worth clients and has about $2.2 billion in AUA. Terms of the deal were not disclosed, however Grey Street will be absorbed under the Caprock brand.
“This acquisition sets a high bar for finding future partners and demonstrates our commitment to growing organically while maintaining the integrity of the services we provide,” Gregory Brown, Caprock co-CEO, said in a statement. “We look forward to quickly integrating the Grey Street team into Caprock and growing together in the future.”
Bill Gilbert, Caprock’s other co-CEO, left the door open to future acquisitions, stating: “Whether it’s this acquisition or any future transactions, the most important thing is that the quality of the service our clients experience never gets compromised. Rather, the goal is to enhance it. To that end, we will continue to be intentional about growth to ensure we always maintain alignment between our firm, our team, and the clients we serve.”
In addition to its Chicago office, Grey Street also has advisors in Scottsdale, Arizona; Winter Park, Florida; and Morris County, New Jersey.
Caprock said the two firms have “complementary markets, creating opportunities to scale their collective geographic footprint.”
M&A can often be used to counteract a lower organic growth rate, and recently, RIAs have struggled to grow organically. A Fidelity benchmarking study showed that organic asset growth for wealth management firms sank below 4 percent in 2022 after a high of 8.2 percent in 2021. According to the report, organic asset growth hovered between 5 and 6 percent in 2019 and 2020.
