Arax Investment Partners, a premier wealth management platform company backed by RedBird Capital Partners, announced the addition of U.S. Capital Wealth Advisors (USCWA), an independent Houston, Texas-based hybrid wealth management firm, manages about $9 billion in AUM/A across over 5,500 clients and 62 advisors.
USCWA has a significant footprint in Texas, including Houston, Austin, Dallas, and Georgetown, as well as New York City and Massachusetts offices. The firm brings sophisticated operating infrastructure and full-service wealth management capabilities, including financial planning, investments, and insurance, to support high-net-worth and ultra-high-net-worth clients on the Arax platform. In 18 months, Arax’s boutique wealth management platform has grown to 120 advisors, serving over 12,000 clients and representing over $16 billion of AUM/A.
U.S. Capital Advisors—co-founded by Pat Mendenhall and Dave King—combined its large advisory wealth business with Legacy One Financial in 2021 to form USCWA under the leadership of Jim Fortescue, Pat Mendenhall, and Dave King. In joining Arax, USCWA will maintain its branding, core advisor, and client-facing operations, becoming a key pillar of the Arax platform.
Arax will continue operating as a multi-boutique platform providing shared services across back-and-middle office functions, and enhancing organic and inorganic growth through new product and service capabilities, cross-selling and supporting M&A sourcing and execution for key teams at USCWA, Ashton Thomas, and the other advisory firms already partnered on the platform.
John Paul Dejoria, one of the country’s most renowned entrepreneurs and philanthropists, was a primary investor in Legacy One and will remain a significant shareholder in USCWA.
UBS Investment Bank and TD Securities served as financial advisors to Arax on the deal, and Fried Frank acted as legal counsel.
KEY QUOTES:
“USCWA was founded on the same principles as Arax, enabling financial advisors to provide expert, holistic solutions to clients that combine the personal touch of a regional firm with capabilities available to larger, national institutions. Bringing in this multi-custodial advisory platform along with the capabilities of U.S. Capital’s broker-dealer will create further opportunities for advisors and their clients across the Arax platform.”
– Haig Ariyan, Chief Executive Officer of Arax
“We strive to provide clients and advisory teams the sophisticated financial support, direction and solutions they need with an unrivaled client-centric experience. We are excited to continue this core focus as part of the Arax team. Arax’s partnership strategy and flexible platform set it apart in the market and will support our team in delivering superior results for clients.”
– Pat Mendenhall, Co-Managing Partner at USCWA
“I have enjoyed being on the inside of the independent wealth industry at US Capital Wealth as a client first and then a partner and owner. As always, the goal of entrepreneurs should be to find the right partners for the next stage of scale and growth. Our team is so proud and confident that RedBird, Arax and their leadership will increase shareholder value and most importantly take care of our many amazing clients, wonderful employees and their talented advisors.”
– John Paul Dejoria
