Boston Private buys Davidson Capital
More consolidation hit the wealth management industry today with the acquisition of Davidson Capital by Boston Private.
More consolidation hit the wealth management industry today with the announced acquisition of Philadelphia-based Davidson Capital Management by Boston Private Financial Holdings, Inc.
Davidson, comprised of Davidson Trust Company and Davidson Investment Counselors, has approximately $1 billion of assets under management and targets wealthy clients living in the affluent “Main Line” area of greater Philadelphia.
The deal adds another wealth center to Boston Private’s national footprint, which currently includes the San Francisco Bay area, Boston and south Florida.
James M. Davidson, the founder and current chief executive of Davidson, will continue as the firm’s chairman.
Alvin A. Clay III, a veteran Philadelphia wealth management executive, will purchase a minority interest in the firm and will be named Davidson’s CEO.
Steve Klammer will continue his role serving as President of Davidson Trust Company.
The sale price was not disclosed, but under the terms of the agreement, Boston Private will acquire a 70% interest in the Davidson Trust Company.
The remaining 30% will be owned by Mr. Davidson, Mr. Clay and the other senior executives of Davidson Capital Management.
According to a statement released by Boston Private, the company will pay 50% of the total consideration at the close and the remaining 50% over a 3 year period. The amount of future payments will be tied to the growth of Davidson Trust Company.
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