Intellectus Partners is looking to boost its manager due diligence team and find a merger partner.
The $763 million Silicon Valley RIA is evaluating a handful of potential partner RIAs in the $300 million range, chief executive David La Placa (pictured above) told Citywire, with a view to have a deal done by the end of the second quarter.
‘For us, we like the tuck-in, so somewhere on the verge of $300 million or somewhere maybe slightly less than that [would work],’ La Placa said. ‘Above that might start to get into an organization that’s got scale where it would be harder to make sure they fit into our culture unless they were just an immediate fight right off the bat because they do things the way we do.’
La Placa is also aiming to hire manager research specialists at both the executive and analyst level.
‘We have great exposure and access,’ La Placa said. ‘You’ve got to make sure you’ve got the capability to do the proper amount of diligence there.’
Based in San Francisco, Intellectus Partners currently has a stable of four manager research professionals. The firm’s investment proposition extends into some esoteric asset classes, including hedge funds, private equity and direct venture investing. Client portfolios typically include a range of two or three fixed income and equity SMAs, five or six hedge funds and a handful of mutual funds and ETFs.
La Placa doesn’t draw much of a difference between the diligence process for evaluating a potential new hire or an M&A partner.
‘We’re really relationship oriented, and the people part is really important. It’s the most important thing. There’s so much autonomy in this business, you have to make sure you hire the right people. And if you don’t hire the right people, you’ve got to make changes very quickly,’ La Placa said.
‘To get a deal done for us, they’re not going to happen that quickly, because we really need to get comfortable with who the people are. We’ve got to do our diligence.’
You can read Citywire's profile of La Placa and Intellectus Partners here.