4. First Republic’s Purchase of Constellation Wealth Advisors
First Republic Bank announced plans in June to buy Constellation Wealth Advisors, an independent multi-family office firm with $6.1 billion in assets, for $115 million in cash. This was First Republic’s first major acquisition in the wealth management space since the firm scooped up Luminous Capital for $125 million in November 2012.
Advisors and industry bigwigs alike were stunned when First Republic bought Luminous, which at the time had $5.5 billion in assets, as the price seemed to set a high bar for valuations of wealth management firms and started a rush of speculation that the headline-grabbing transaction would spur similar deals.
In the Constellation deal, First Republic is paying $10 million less for a firm with $600 million more in assets.