First Republic will integrate Luminous Capital Holdings into First Republic Investment Management.
Luminous provides high net worth individuals, family offices, and family foundations with strategic investment advice and asset allocation, including alternative investments. Luminous had $5.5 billion of wealth management assets under management as of Sept. 30.
When the acquisition closes in December, Luminous’ six partners will sign long-term contracts as part of the deal. The purchase will include substantially all of the assets of Luminous and the price will be paid in cash. First Republic expects the transaction to be modestly accretive to earnings in next year. The price was 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, First Republic’s chairman and CEO. “Luminous aligns with and will complement our existing wealth management capabilities.”
Luminous has offices in California in Portola Valley 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 Eric Harrison, Luminous’ CEO. “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.”