Tiedemann Buys Threshold to Create $15 Billion Wealth FirmBy and
George Russell’s Threshold has $3.4 billion in assets
Tiedemann was attracted by Threshold’s impact investing focus
Tiedemann Wealth Management agreed to buy Threshold Group, a Seattle wealth manager established by Jane and George Russell, to create a firm with $15 billion in assets.
Threshold will give Tiedemann expertise in investing in companies that create social and environmental benefits, the firms said in a statement Thursday. The Russell family is known for creating the Russell stock indexes. Terms of the deal weren’t disclosed.
“We saw their expertise in impact investing as being hugely additive,” Michael Tiedemann, chief executive officer of his namesake firm, said in a phone interview. Threshold also considered Tiedemann’s scale and the fiduciary services to trust companies as assets, he said.
The wealth management industry is experiencing a wave of consolidation, with scale seen as providing wider profit margins. In July, former Affiliated Managers Group executives started a company called Wealth Partners Capital Group with EP Wealth Advisors, Forbes Family Trust and MAI Capital Management, to aggregate smaller wealth management businesses. Tiedemann announced a deal to combine with San Francisco-based Presidio Capital Advisors in August 2016.
Threshold’s $3.4 billion in assets includes $1.5 billion in impact investments. New York-based Tiedemann, which was founded by Carl Tiedemann, a former president of Donald, Lufkin & Jenrette, has about $12 billion in assets under advisement.
The Russell family, which sold Russell Investments in 1998, will take an ownership stake in Tiedemann and continue as a client of the combined firm, according to the release.
The groups began discussions on the deal about six months ago after realizing that the two firms had similar client bases and cultures, Tiedemann said.
Silver Lane Advisors was Threshold’s financial adviser on the transaction. Morgan Lewis was Tiedemann’s legal adviser.