By Chris Glynn
Pathstone Family Office (PFO)
has bought $1.9 billion boutique index fund Advisor Partners (AP), the
multi-family office confirmed.
The AP purchase will enable
Pathstone to become a direct indexer for both internal and external clientele,
said Sharon Gupta, director of marketing and business development for
PFO. She declined to disclose the cost of the acquisition.
“We will invest in AP, who will
provide their customized indexing service,” Gupta explained.
Advisors Partners is based in Southern
California, located in the coastal town of Newport Beach and run by Chief
Investment Officer Rahul Agrawal, who joined AP in 2014 after working
with Deutsche Bank and Goldman Sachs & Company.
Direct indexing is a portfolio
construction exercise, enabling the use of active tax, socially responsible,
and factor tilt investing. Asset manager BlackRock, mutual fund provider
Franklin Templeton Investments and Vanguard Group have offered direct
indexing.
PFO is headquartered in Englewood,
New Jersey, and manages $35 billion. Earlier in May, Pathstone acquired $3
billion of certain assets of the $11 billion Eaton Vance WaterOak Advisors
from Morgan Stanley.
