DiMeo Schneider picks up $84 billion RIA
The Chicago-based firm is acquiring Fiduciary Investment Advisors, creating a company with $180 billion in combined assets under administration
DiMeo Schneider & Associates is buying another registered investment adviser, Fiduciary Investment Advisors, creating an RIA with $180 billion in assets under administration.
DiMeo Schneider, which is a joint venture with NFP, announced the deal on Jan. 22. It is expected to close during the second quarter. NFP “will retain a similar ownership structure in the combined operations,” according to the announcement.
The two firms have significant overlap in the types of clients they serve, said Robert DiMeo, chief executive of DiMeo Schneider. Both have the bulk of their retirement plan business in the $50 million to $500 million market segment, he said. DiMeo Schneider does more business with endowments and trustee-directed assets, while Fiduciary Investment Advisors has a wider breadth of 403(b) plan clients, Mr. DiMeo said.
“They have a client roster of 403(b) plans that is probably second to none,” he said.
DiMeo Schneider is based in Chicago and most recently reported AUA of about $96 billion. Connecticut-based Fiduciary Investment Advisors has about $84 billion in AUA.
Mr. DiMeo will lead the combined organization as CEO. The company is adding the Fiduciary Investment Advisors label to its branding, according to a release. Fiduciary Investment Advisors president Mark Wetzel will become president of the combined company, and the executive leadership will include people from each firm.
“It really is a combination of two growth-oriented organizations that have known each other and worked together in various manners for years,” Mr. DiMeo said.
The two companies have collaborated on research initiatives, including fee benchmark studies for defined-contribution plans, he said.
The combined firm will have a total of about 180 employees across seven offices, with clients in 47 states. There will be “no downsizing” and “both organizations are hiring right now,” Mr. DiMeo said.
The additional scale allows for greater investment in technology and “creates more growth opportunity for our professionals,” he said. “There are very few pieces of business that are appealing to us that we won’t be qualified to pursue.”
For Fiduciary Investment Advisors, that means more opportunity in the private client and high-net-worth markets, he said.
The volume of mergers and acquisitions in the RIA market has been rising, and some expect deals to continue to grow. Last year, there were 127 such transactions, up 44% from the level in 2018, according to a recent report from Fidelity Investments.
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