Cleveland-based RIA aggregator MAI Capital Administration has partnered with Intersect Capital, a San Ramon, Calif.–based mostly wealth administration agency overseeing roughly $1.3 billion in belongings for enterprise homeowners, entrepreneurs, athletes and entertainers.
MAI acquired its begin within the Seventies as an affiliate of Worldwide Administration Group, which revolutionized the sphere of sports activities administration within the mid-Sixties with a golfer named Arnold Palmer. The agency has expanded its focus over time to incorporate company executives and rich households however has maintained a devoted division targeted on serving athletes and different entertainers, constructing out a specialised group by means of natural development and focused acquisitions.
Following the addition of Intersect and founder Joe McLean, nevertheless, any future development in that vertical is prone to depend upon natural methods, in line with Steve Trax, head of MAI’s sports activities and leisure arm.
“With the addition of Joe’s group, I believe we’ve acquired a extremely nice basis there and one which we are able to develop from,” Trax mentioned. “I don’t see us being extraordinarily aggressive on the inorganic addition facet to the sports activities enterprise going ahead.”
After bringing on Trax and MTX Wealth Administration in 2019, a majority funding from monetary companies distribution platform Galway Holdings enabled a collection of acquisitions starting in 2021, together with Queens Oak Advisors in Charlotte, N.C., Geier Asset Administration in Baltimore and Monarch Enterprise and Wealth Administration in New York Metropolis. With specialties across the sports activities and leisure industries, all joined MAI’s devoted division.
“A handful of us are former school athletes, and a few professional athletes,” mentioned Trax. “And I believe that dynamic actually helps us to perceive the right way to service that specific kind of shopper appropriately. It’s a really complete, household workplace method the place we’re concerned in nearly each facet of their monetary lives.”
McLean based Intersect with the categorical purpose of delivering customized options to a choose group of high-net-worth skilled athletes, entrepreneurs and entertainers. He and his group of a couple of dozen professionals will undertake the MAI branding as a part of the deal.
“Joe’s group provides depth and breadth to our present sports activities and leisure platform,” mentioned Trax. “He and his shoppers have expertise with investments and funding constructions that I believe are considerably distinctive to the West Coast. I believe he brings in some recent concepts and nice alternatives for our agency as a complete and our sports activities vertical, for positive.”
“Our shoppers have devoted their lives to attaining generational success for themselves and their households,” mentioned McLean. “MAI’s latest partnership with Galway permits us to forge a brand new path ahead whereas elevating our capabilities to fulfill the wants of our shoppers delivering an modern vary of options to fulfill and exceed the excessive requirements of every shopper we serve.”
MIA and Intersect turned acquainted by means of the Galway acquisition, which is able to allow continued M&A exercise throughout MAI’s different divisions.
“I believe we’ve acquired a pleasant pipeline of companies that our platform resonates with,” mentioned Trax. “As a agency, we’re seeking to strategically and thoughtfully add perhaps 5 to 6 companies a yr, if it is sensible to do this.”
He’s glad with the present configuration of his personal division, nevertheless. “I believe we’ve got an excellent group because it stands right now,” Trax mentioned. “And the potential for development there’s, from an inorganic perspective, important, given our depth of expertise and platform and the best way we care for our shoppers.”
Led by Managing Companion Rick Buoncore, MAI at present has 17 further places of work nationwide, with greater than $13 billion in belongings beneath administration.