Cohen & Company, a tax and financial advisory business for businesses and high-net-worth clients, has sold a stake in the company to private equity firm Lovell Minnick Partners.
The investment comes one day after LMP bought a majority stake in Americana Partners, a Houston-based RIA and member of the Dynasty Financial Partners network.
Cohen & Company is a nationwide assurance, tax and business advisory firm, working in the mutual fund, private equity, alternative investments and real estate industries while specializing in serving businesses, family offices and HNW individuals.
It was founded in 1977 and now has more than 800 employees across the country. It has 12 offices in Illinois, Ohio, Maryland, Michigan, New York, Pennsylvania and Wisconsin and affiliated entities in Ireland and the Cayman Islands.
According to the firm, the investment will be used to expand its tech and services. CEO Chris Bellamy said the firm was spurred to “work harder than ever” when entering this “new chapter.”
“LMP will be a valuable strategic partner, offering a unique perspective on our industry and the clients we serve, along with a dedicated focus on human capital, which is crucial to our growth strategy as an employer of choice,” Bellamy said.
The deal is expected to close on Dec. 31, and Cohen & Co. will “substantially increase” the number of employees holding equity; this, combined with “substantial reserves for future equity-based incentives,” will help the firm hit its strategic goals, Bellamy said.
After the deal closes, the firm will split (though both sides will continue to operate under the Cohen & Company brand name). Cohen & Company, Ltd. will be a licensed CPA firm offering attest services led by Vince Curttright. Bellamy will lead Cohen & Co. Advisory, offering business, tax and advisory services.
Hunton Andrews Kurth and Sidley Austin served as legal counsels for Cohen & Company and LMP, respectively.
On Thursday, LMP announced it made a majority investment in Americana Partners, becoming the firm’s first owner outside of its founders and management team. Americana’s leadership team will continue to run the firm, while the leaders and employees will remain significant owners.
A group of Morgan Stanley breakaways founded Americana in 2019, making it the largest team to join Dynasty. The group launched with seven advisors across three Texas offices and has grown to $8.5 billion in managed assets.
LMP was founded in 1999 and mainly works with high-growth, middle-market companies, focusing on financial and business services and fintech firms. Current holdings include Pathstone, OneZero Financial and STP Investment Services. It previously held stakes in Mercer Advisors, Foreside and AssetMark.
