Lido Advisors, a wealth advisory firm based in Los Angeles, announced it will acquire the Los Angeles-based fixed income portfolio management team of Denver-based First Western Financial Inc. and over $300 million in assets currently held by First Western Capital Management Company.
The transaction potentially includes management of First Western Funds Trust mutual fund assets, pending review and approval by the mutual fund board of trustees and shareholders, and subadvised assets by a Lido Advisors affiliate, Oakhurst Advisors.
Ken Stern, a senior managing director at Lido, declined to provide the price tag for the acquisition, but said the addition would allow Lido to economize on a function it had previously outsourced and would “attract new money” by empowering Lido to offer “customized bond portfolios” to its roster of clients and “like-minded RIAs and other entities.”
Stern noted “a lot of the fixed income strategies out there are not unique: they’re buying big lots, buying indexes. … We can now look all over the world, trade bonds, get more aggressive, buy in smaller lots and be more aggressive in trading bonds.”
Lido, he said, caters primarily to the “mass affluent” niche, which he defines as anyone with $5 million to $10 million of liquid net worth.
