First Trust Capital Partners has agreed to purchase direct indexing asset management and financial technology company Veriti Management LLC. The terms of the deal were not disclosed.
The transaction is expected to close on July 31, subject to customary closing conditions. Through this acquisition, First Trust adds direct indexing to its platform of investment solutions.
“Customization through direct indexing empowers the advisor to deliver personalized and tax-advantaged solutions that better align with the investment objectives, values, and interests of their clients,” said Ryan Issakainen, senior vice president, ETF strategist at First Trust, in a news release announcing the deal. “We are delighted to begin this partnership with the Veriti team and look forward to working together to service the advisor community.”
Veriti was built by advisors for advisors to provide direct indexing solutions to institutions and wealth management firms. Their approach to asset management focuses on delivering advisors scalable strategies for driving tax-advantaged returns and customization for individual investors. An FTCP spokesperson confirmed that the Veriti brand will remain.
In February, Veriti launched its Console® solution to streamline tasks and minimize the time required to create fully customized equity portfolios focused on tax efficiency and responsible investing.
“We’re excited to enable First Trust to help institutions and wealth management firms better align client portfolios with their values while providing tax efficiency and personalization,” added Jim Dilworth, co-founder and managing partner at Veriti, in the release. “Veriti, teamed with a renowned ETF provider and asset management leader in First Trust, will empower advisors and institutions to address their clients’ investing preferences at a far deeper, more personalized level.”
Through First Trust Advisors LP, First Trust had more than $203 billion in assets under management or supervision as of May 31.
Chapman and Cutler LLP is First Trust’s legal counsel in this deal, while Berkshire Global Advisors and Nixon Peabody are Veriti Management’s financial advisor and legal counsel, respectively.
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