Wealth adviser Pathstone is beefing up its presence in Austin, Texas, after a growing number of its affluent clients moved there.
(Bloomberg) — Wealth adviser Pathstone is beefing up its presence in Austin, Texas, after a growing number of its affluent clients moved there.
The Englewood, New Jersey-based firm is acquiring Brainard Capital Management, a registered investment adviser in the Texas state capital with $2 billion under management and administration, it said Monday in a statement. Brainard specializes in advising technology entrepreneurs and family offices.
Austin has the “single best” demographics for wealth generation in the US, Matthew Fleissig, Pathstone’s chief executive officer, said in an interview. The firm has seen more of its clients move to the Texas city from Silicon Valley, he said.
“You’re seeing this incredible growth in Austin,” Fleissig said. “We want to make sure we can serve the clientele that are moving there.”
Brainard’s seven employees will join Pathstone following the acquisition.
The number of high-net-worth individuals in Austin increased 102% to 30,500 in 2022 from 2012, according to investment migration firm Henley & Partners. Nicknamed “Silicon Hills,” Austin is now a major hub for tech companies, with more than 7,000 firms in the area, according to an estimate from CompTIA. The rise of remote work during the pandemic also accelerated the influx of wealth into the city.
Brainard specializes in advising tech executives before and after they come into wealth, such as through a sale of their business.
The acquisition will boost Pathstone’s assets under advisement and administration to more than $80 billion, according to the statement.
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