Caprock, an SEC-registered multifamily workplace beforehand serving about 300 ultra-wealthy households with a median of $30 million invested, has made its first acquisition with the acquisition of Gray Road Capital, a 12-person workforce overseeing about $2.2 billion for 80 purchasers.
Chicago-based Gray Road, which additionally has advisors in Arizona, Florida and New Jersey, is adopting Caprock branding within the deal. The mixed corporations characterize greater than $11 billion in whole belongings, about 78% of which is managed.
“This acquisition units a excessive bar for locating future companions and demonstrates our dedication to rising organically whereas sustaining the integrity of the providers we offer,” Caprock co-CEO Gregory Brown mentioned in a press release. “We look ahead to rapidly integrating the Gray Road workforce into Caprock.”
Taking an endowment-like funding strategy, Caprock manages greater than $4 billion in non-public market investments, together with non-public fairness, enterprise capital, actual property and personal credit score.
“Becoming a member of the Caprock workforce means our advisors and purchasers will now have entry to an excellent higher toolset,” mentioned Gray Road co-founder and CEO Jay Web page. “Simply as necessary, our corporations have shared values and an analogous, client-first strategy to wealth administration, a distinction with others who are likely to restrict themselves to mannequin portfolios full of liquid belongings.”
Caprock’s former head of company improvement, Emily Blue, labored to place the Gray Road deal collectively earlier than departing Caprock earlier this 12 months to launch her personal sell-side advisory agency with a former M&A frontrunner for Focus Monetary.
Calling Tuesday’s announcement “fabulous,” Blue mentioned Caprock has traditionally pursued inorganic development via lift-outs and recruitment.
“These take a bit longer,” she mentioned. “You’re serving to them transition books or develop internally. M&A is the quickest.”
“Whether or not it’s this acquisition or any future transactions, crucial factor is that the standard of the service our purchasers expertise by no means will get compromised. Somewhat, the objective is to reinforce it,” mentioned Caprock co-CEO Invoice Gilbert.
Based by a gaggle of its executives in 2005, Caprock is privately held and headquartered in Boise, Idaho, with workplaces in San Jose and Newport Seashore, Calif.; Park Metropolis, Utah; Seattle; Austin, Texas; and New York Metropolis.