First Republic in California to Buy Wealth Advisor

First Republic Bank (FRC) in San Francisco has agreed to buy Luminous Capital Holdings
Luminous, an independent wealth advisor based in Los Angeles, provides investment advice and asset allocation, including alternative investments, to high-net-worth individuals, family offices and foundations. The advisor had wealth management assets of $5.5 billion at Sept. 30.

Luminous has offices in near San Francisco and Los Angeles and operates in the same markets as the $31 billion-asset First Republic.

First Republic has been rapidly expanding and has opened several new offices this year, including its first branch in Florida. The bank targets wealthy individuals and businesses.
 
"Luminous Capital is an opportunity to acquire a highly successful wealth management firm with the same commitment to extraordinary client service as First Republic," Jim Herbert, First Republic’s chairman and chief executive, said in a press release Wednesday. "Luminous aligns with and will complement our existing wealth management capabilities."

Under the agreement, First Republic would pay cash for substantially all of the wealth advisor’s assets. The six partners of Luminous would sign long-term employment contracts with First Republic as part of the deal.

A purchase price for the deal, which is expected to close by Dec. 31, was not disclosed. First Republic expects the deal to be modestly add to its earnings next year.
 
Luminous was advised by KBW’s Keefe, Bruyette & Woods and the law firm of Paul Hastings. First Republic was advised by Silver Lane Advisors and the law firm of Arnold & Porter.