Focus Financial Expands To UK, Buys Greystone Financial

By Kristen McNamara

February 09, 2008 – NEW YORK (Dow Jones) – Focus Financial Partners LLC is expanding into the U.K. with the acquisition of Greystone Financial Services Ltd.

The deal, which the firms expect to close in the spring, advances efforts by New York-based Focus to create a global network of independent financial advisory firms.

Greystone has offices in London and Manchester and more than $1.6 billion of client assets.

The deal will bring the number of Focus partner firms to 15, and assets under management to more than $26 billion.

Focus takes a 40% to 70% stake in investment advisory firms, which sell advice rather than products, in exchange for cash and an ownership position in Focus. Partner firms retain their identities and operational independence and gain access to the capital and back-office support of a larger organization.

Focus, while continuing to look for additional partners in the U.S. and the U.K., could pursue opportunities elsewhere in Europe in the next couple years, Founder and Chief Executive Rudy Adolf said in an interview. The firm is looking for diversity overseas and hopes to tap the growing demand it sees for independent financial advice.

“We always viewed Focus as a model that would be going beyond the U.S.,” Adolf said. “We are still at the beginning of our journey.”

Paul Heap, a Greystone managing director, said the ability to continue operating with a great deal of autonomy—coupled with the quality of Focus partner firms—was attractive.

Focus and Greystone didn't disclose terms of the deal but said they expect it to close in April.

Focus could eventually go public or sell to another firm, but Adolf said the firm has “no imminent need for any liquidity event.” Focus wants to continue growing, he said.

Focus was founded in January 2006 with funding from Summit Partners, a private equity and venture capital firm.

Its first four advisory partner firms had a total $3.5 billion in client assets.