Pathstone Is in the Direct Lending Business

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