FOR IMMEDIATE RELEASE
Contacts:
Scott D. Roulston, 216.431.3840
scott.roulston@fairportasset.com
Rusty Benton, 615.297.6884
rusty@wealthtrust.com
WealthTrust LLC to Obtain Stake in Fairport Asset Management
CLEVELAND, OH - WealthTrust LLC announced today that it has signed a definitive agreement to obtain a majority stake in Fairport Asset Management, a Cleveland, Ohio-based wealth management firm with $1 billion in assets under management, to be effective on or about November 30, 2007.
"Bringing in WealthTrust allows us to grow with our local management for many years to come. WealthTrust brings us efficiencies, may allow our clients a broader range of investment products, and at the same time, facilitates succession planning that ensures we can serve our clients without disruption for generations to come. We are in a people business and this puts us in a stronger position to attract and retain the best talent. All 11 of our partners will remain as owners of the emerging company", said Fairport Asset Management Chief Executive Officer Scott D. Roulston.
"WealthTrust is making a significant investment in us which validates all the work we have done to establish our model of providing confident navigation for high-net worth clients, said Paul Abbey, Fairport Asset Management Chairman."
Already one of the largest independent investment advisory firms in Northeastern Ohio, Fairport sought capital to help it promote and retain the next generation of partners, gain efficiency in areas such as back office systems, compliance and marketing, and support the possible future acquisition of other regional wealth management firms. All of Fairport’s 33 employees, including 11 partners, will remain in place.
"We enjoy many stable, long-term client relationships that will benefit from WealthTrust’s added resources and commitment to a seamless transition. Our investment process is unchanged and investment decisions and all client communications will continue here in Cleveland since we will remain a separate company. We may have access to new investment products through the scale that WealthTrust offers, but we will always remain committed to providing independent advice without the bias of commissions. We believe in the fiduciary model of putting client interests first", Roulston added.
"We are pleased to invest alongside Fairport’s management team to strengthen and expand their longstanding focus of meeting clients’ evolving financial needs. Fairport has a long history of serving high net worth families in the Northeast Ohio with roots dating back to 1963. With programs such as Women in Transition and other client education initiatives, WealthTrust is excited to work alongside such a strong, experienced team, and we look forward to supporting their continued growth" said WealthTrust CEO M. Rush Benton.
About Fairport Asset Management
Founded in 2001 through the merger of The Hickory Group and Roulston and Company, which was originally founded in 1963, Fairport provides wealth management services to high-net-worth individuals, families, and select institutions, and has specialized services for succession and liquidity planning for business owners, executives, and financial issues and education unique to women. The firm’s professional staff includes CPA’s, CFP certificants, CFA charter holders, and an investment group with 20 years industry experience on average.
Fairport was named in 2005 as one of the nation’s Best-Managed Firms according to Moss Adams.*
The current firm is owned by 11 experienced partners all of whom will remain as owners of the emerging company. As one of the largest independent wealth management firm in Northeastern Ohio, Fairport has expanded by providing comprehensive wealth management that includes asset allocation strategies, net worth and estate planning analysis, cash flow and retirement planning support, and investment management as a core expertise.
*Moss Adams LLP provides accounting, tax, and consulting services to public and private middle-market enterprises. Moss Adams generally conducts an annual survey of registered investment advisors and ranks survey participants using multiple factors which may change from year to year. The "Best-managed Firms" were selected in 2005 using the 464 participants in the Financial Planning Association 2005 FPA Compensation and Staffing Study. Of those participants, the 283 firms that generated at least 75% of their revenues in FY 2004 from fees were considered. From that group, the top 10% of advisory firms were selected based on a composite score that consisted of profitability, productivity, leverage, and recruiting.
About Wealth Trust, LLC
With the completion of this transaction and another pending transaction, WealthTrust will hold ownership interests in eleven affiliated investment management firms across the United States totaling approximately 160 people, which have approximately $8.6 billion in client assets collectively. It provides affiliates with support in the areas of client service, sales and marketing, compliance, operations, technology, and corporate development. WealthTrust’s headquarters are located in Nashville, TN. Company affiliates presently include: WealthTrust Advisors (Charlotte, NC; Paducah, KY); WealthTrust - DunckerStreett (St. Louis, MO); WealthTrust - Kanawha Capital (Richmond, VA); WealthTrust - Arizona (Scottsdale, AZ); Delta Asset Management (Memphis, TN); Greenwood Capital Associates (Greenwood, SC); Harvey Investment Company (Louisville, KY); Optimum Investment Advisors (Chicago, IL); and Wilbanks, Smith & Thomas Asset Management (Norfolk, VA).
For more information, go to www.fairportasset.com or call 216-431-3000 or 800-222-7459.