First Republic Bank, a private bank and wealth management company, and Luminous Capital Holdings, LLC, one of the nation’s leading independent wealth advisors, today announced that Luminous Capital will become part of First Republic Investment Management, Inc., a wholly-owned subsidiary of the Bank.
Based in Los Angeles, Luminous Capital provides high net worth individuals, family offices, and family foundations with strategic investment advice and asset allocation, including alternative investments. As of September 30, 2012, Luminous Capital had wealth management assets of $5.5 billion.
The six partners of the firm will sign long-term employment contracts as part of the transaction, which is expected to close by December 31, 2012, subject to customary conditions. The purchase will include substantially all of the assets of Luminous Capital and the price will be paid in cash. First Republic expects the transaction to be modestly accretive to earnings in 2013. Financial terms were not disclosed.
“Luminous Capital is an opportunity to acquire a highly successful wealth management firm with the same commitment to extraordinary client service as First Republic,” said Jim Herbert, Chairman and CEO of First Republic. “Luminous aligns with and will complement our existing wealth management capabilities.”
Luminous Capital has offices in Portola Valley on the San Francisco Peninsula and in Century City, and operates in the same markets and segments as First Republic Investment Management.
“Luminous Capital is a perfect fit with First Republic, and we welcome the opportunity to work with a team of wealth managers and bankers who have such a stellar reputation,” said Luminous Capital CEO Eric Harrison. “Luminous Capital clients will have full access to the substantial resources and capabilities of First Republic, one of the strongest and most client-centric private banks in the United States.”
Luminous Capital was advised by Keefe, Bruyette & Woods, and the law firm of Paul Hastings, LLP. First Republic was advised by Silver Lane Advisors and the law firm of Arnold & Porter, LLP.