For the original article, visit WealthManagement. Don’t miss out on our free daily WealthManagement newsletters.
Two registered investment advisors based in Maryland and New York City are merging to form an employee-owned firm with assets exceeding $4 billion under management.
In a conversation with WealthManagement.com<em, Pat Collins, co-founder of Greenspring Advisors, and Michael Goodman, founder of Wealthstream Advisors, highlighted their commitment to employee ownership in the new entity.
This merger positions the combined entity among a select group of employee-owned firms across the nation with assets in the billion-dollar range. Collins pointed out that publicly traded companies or those backed by private equity must answer to shareholders and investors.
“In our case, we are accountable to one another and to our clients,” he stated. “This leads to a more aligned approach in decision-making with our clients and our team, rather than solely focusing on financial returns.”
Post-merger, the newly formed Greenspring Advisors will manage over $10 billion in total assets, which includes the $4.3 billion from private client accounts and approximately $6 billion in institutional assets.
The team consists of 70 professionals, with 23 holding equity in the company and plans to increase that number moving forward. Office locations will include Towson, Md.; Lancaster, Pa.; Paramus, N.J.; and New York City.
Collins remarked that he and Goodman have shared a professional relationship for over ten years, with discussions regarding the merger starting about a year and a half ago. Goodman added that they are part of a “strong segment of the industry” that emphasizes the importance of maintaining an employee-owned structure.
As noted in a merger announcement from Echelon, which facilitated the transaction, Wealthstream, based in New York, focuses on financial planning and investment management for affluent individuals and families, while Greenspring, located in Maryland, specializes in advisory for institutional clients and retirement plan sponsors, alongside wealth management for individuals.
Goodman explained that the merger will enhance the firm’s commitment to its employee-owned model by directing more resources to their team. Although he mentioned that regional priorities were not a key strategy, the firm’s geographic presence provides a seamless operational area from New York to Maryland.
“It wasn’t our primary focus, but it’s certainly a valuable advantage,” Goodman expressed.
Collins stated that Greenspring aims to establish “the leading training program” in the RIA sector, noting the robust G2 and G3 development within the organization over the years. While not opposed to mergers and acquisitions, Collins emphasized an organic growth strategy over simply acquiring other firms for talent development.
