"From our standpoint, this is where wealth is being created," Valdman said."This is where wealth will be managed."264 deals among RIAs last yearXO Managing Director Matthew Fuller said consolidation played a role in the decision to do a deal with SHP.
At the same time that XO began looking for a partner, SHP wanted to make an entry into wealth management. Valdman said he has been looking at acquiring an RIA for a couple of years but he wanted to wait to find the right deal. Valuations for firms skyrocketed the last few years during the explosion of M&A, Valdman said. He pointed to Goldman Sachs'"The valuations we just felt weren't sustainable," Valdmansaid.
For XO, partnering with SHP gives the firm access to more family office services and private equity investments. Fuller said some of his ultra-high-net-worth clients are exiting their own businesses and can benefit from family office services.As Valdman looks to do more deals, he said he remains focused mainly on partnering with small RIAs around DFW.