BOSTON--(BUSINESS WIRE)--Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) today announced the sale of its 76% interest in Palo Alto-based Sand Hill Advisors, LLC (Sand Hill). BPFH’s interest was sold to the management team of Sand Hill with the financial support of Fiduciary Network. The transaction is not expected to have a material impact on BPFH earnings.
"We were originally attracted to Sand Hill in 2000 because of their solid investment strategy and strong management team then led by Jane Williams as well as Gary Conway, who retired from the firm in 2004 but remains a member of the board of directors. At the time of the 2000 transaction, we classified Sand Hill as an investment manager,” said Jay Cromarty, CEO of BPFH’s Wealth Advisory and Investment Management Business.
“The current team, which is lead by Jane Williams, CEO and Jim McCaffrey, President, today provides wealth advisory services to its many clients. Since the formation of our partnership, Sand Hill’s business evolved, causing us to reclassify it as a wealth advisor and creating overlap with other BPFH affiliates in the Northern California market. As we and Sand Hill management discussed possible means of mitigation, the notion of selling the firm to its senior management became ever more compelling. We believe that this transaction benefits all parties involved,” said Cromarty.
The BPFH business model is centered on diversification in terms of both geographic location and the provision of core capabilities: wealth advisory, investment management and private banking services. In Northern California, BPFH will continue to provide wealth advisory services through Bingham, Osborn & Scarborough and private banking services through Borel Private Bank & Trust Company.
“We have enjoyed our tenure within the BPFH family,” said Jane Williams, CEO of Sand Hill Advisors. “This is an amicable change in ownership which is in the best interest of our clients, our employees, and all other stakeholders. Our mission at Sand Hill remains the same – we will continue to help high net worth clients successfully manage their wealth through life’s changes.”
Sand Hill provides comprehensive, planning-based financial strategies for wealthy individuals, families, charitable organizations and select institutions. Sand Hill will continue to operate from its Palo Alto headquarters. Its sub-advisory relationship with Borel Private Bank & Trust Company will continue and will not be impacted by the change in ownership.
“I am truly excited about this great partnership with a great management team which has over 20 years of experience helping high net worth clients manage their wealth,” said Mark Hurley, CEO, Fiduciary Network.
Fiduciary Network funds both internal transitions and management buyouts of fee-only wealth management companies. It provided the funding for Sand Hill’s management to repurchase the company from BPFH. This is the ninth transaction that Fiduciary Network has completed and the fifth in the last sixth months.
“Buying the firm back from BPFH and partnering with Fiduciary Network to fund our ownership transition plan allows us to bring more key employees into the ownership fold and fits nicely with our long term plan,” says James McCaffrey, President of Sand Hill Advisors. “It’s a win-win situation for the executive team, for the financing partner, for the new junior partners, and for our clients.”
Boston Private Financial Holdings
Boston Private Financial Holdings is a national financial service organization comprised of independently operated affiliates located in key regions of the U.S. that offer private banking, wealth advisory and investment management services to the high net worth marketplace, selected businesses and institutions. The Company enters demographically attractive markets through a selective acquisition process and then expands by way of organic growth. It employs a distinct business strategy, empowering its affiliates to operate independently in order to best serve their clients at the local level, while at the same time providing strategic oversight and access to resources, both financial and intellectual, to support management, compliance, legal, marketing, and operations. (NASDAQ: BPFH).
For more information about Boston Private, visit the Company's web site at www.bostonprivate.com.
Statements in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties. These statements include, among others, statements regarding our strategy, evaluations of future interest rate trends and liquidity, prospects for growth in assets, and prospects for overall results over the long term. You should not place undue reliance on our forward-looking statements. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to significant risks, uncertainties and other factors which are, in some cases, beyond the Company's control. Forward-looking statements are based on the current assumptions and beliefs of management and are only expectations of future results. The Company's actual results could differ materially from those projected in the forward-looking statements as a result of, among other factors, adverse conditions in the capital and debt markets and the impact of such conditions on the Company's private banking and asset investment advisory activities, changes in interest rates, competitive pressures from other financial institutions, a deterioration in general economic conditions on a national basis or in the local markets in which the Company operates, including changes which adversely affect borrowers' ability to service and repay our loans, changes in loan defaults and charge-off rates, adequacy of loan loss reserves, reduction in deposit levels necessitating increased borrowing to fund loans and investments, the passing of adverse government regulation, the risk that goodwill and intangibles recorded in the Company's financial statements will become impaired, and risks related to the identification and implementation of acquisitions, as well as the other risks and uncertainties detailed in the Company's Annual Report on Form 10-K and other filings submitted to the Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.