Focus Financial Partners Inc. (NASDAQ:FOCS), a partnership of independent, fiduciary wealth management firms, announced that it has entered into a definitive agreement under which Origin Holding Company LLC, a sponsor of qualified opportunity zone and other private real estate funds, will “join forces” with Chicago-based Focus partner firm Kovitz Investment Group Partners LLC.
According to Focus Financial, Origin will retain its leadership and investment team and will continue to offer its real estate funds under the Origin brand. The transaction is expected to close in the first quarter of 2023, subject to customary closing conditions.
Origin funds has more than 3,000 individual investors, many of whom were referred to Origin through its partnerships with other firms.
The company says, “building on Kovitz’s long track record of success in real estate investing, this is a strategic transaction that will substantially increase the footprint and scale of Kovitz’s private real estate fund solutions for clients.” Origin claims the transaction will also make Kovitz’s wealth management experience and operational infrastructure available to their company and its investors.
“In evaluating strategic partners, our objectives were to preserve and promote the continuity of our well-established brand while also gaining access to additional resources to help us better serve our funds’ investors and grow our business,” said David Scherer, co-chief executive officer of Origin.
“Kovitz’s success as a leading wealth manager and private real estate investor made them the clear choice,” added Michael Episcope, co-chief executive officer of Origin. “We also greatly value that Kovitz is a Focus partner firm, and we believe that our business will derive substantial benefits from being part of the Focus partnership.”
Founded in 2007 by David Scherer and Michael Episcope, Origin is a manager of private real estate funds, with particular focus in multifamily residential real estate investments. Origin manages various funds that buy, develop and lend to multifamily properties, seeking to provide their investors with tax efficient income, capital appreciation and diversification for their investment portfolios.