Sanctuary buys tru Independence, creating $42B firm

By Staff report May 01, 2024, 3:37 p.m. EDT 2 Min Read

In a deal that gives Sanctuary Wealth a separate service provider for independent registered investment advisory firms, the Indianapolis-based firm acquired tru Independence.

Sanctuary — an independent brokerage and RIA that's majority owned by Italian asset management firm Azimut Group — acquired tru Independence, a Portland, Oregon-based firm that was previously owned by private investment firm Entwood Holdings and works with 30 RIAs that manage $12.5 billion in combined client assets, the companies said May 1. The parties didn't disclose the financial terms of the deal after the close a day earlier, and representatives for the firms said the number of incoming financial advisors to Sanctuary was not available.

The combined firm now includes 120 independent firms managing more than $42 billion in client assets across 30 states. As part of the deal, the 20 tru advisors who have brokerage relationships with four different firms can choose whether to keep those ties or switch to Sanctuary Securities. The firms will operate under the same brands and management, with tru as an independent subsidiary to its new parent firm.

"Together, the firms have an unprecedented opportunity to collectively redefine what it means to be a full-service, multichannel independent wealth management enterprise that specializes in supporting only the most successful financial advisors with sophisticated businesses and accomplished clients," Sanctuary Wealth CEO Adam Malamed said in a statement. "This transformative acquisition significantly enhances our support for the industry's most elite advisors everywhere, from wirehouse breakaways to already independent advisors."

Malamed took the reins of the firm last year in a surprise announcement two days after Sanctuary opened an office in New York. At the time he became CEO, the firm spanned 80 independent offices with advisors managing $25 billion in client assets. Azimut invested in Sanctuary in 2021, and the firm secured $175 million in additional financing in 2022 through a loan from the managed funds of private credit firm Kennedy Lewis Investment Management.

Tru Independence received its infusion from Entwood in 2020, six years after CEO Craig Stuvland launched the firm. Similar to Dynasty Financial Partners' primary business model, tru provides outsourced services to independent RIAs in areas such as compliance, administrative and operational needs and investment technology. When tru helped an advisor launch a family office at roughly this time last year with $1 billion in client assets, the firm reported that the RIAs using its platform managed $9 billion.

"Sanctuary is the undisputed leader in helping top wirehouse advisors establish their independence with their multi-custody, corporate RIA model. Rooted in our shared commitment to providing advisors ultimate choice, the combination of Sanctuary and tru will fundamentally transform the RIA ecosystem," Stuvland said in a statement. "Separately, both firms have successfully attracted top-tier advisors and practices, albeit using slightly different approaches. Together, we are confident top-quintile advisors across the wealth management space will quickly appreciate everything our expanded enterprise represents and will be eager to take advantage of affiliation options that best suit their practices, staff and clients."

Staff report