Captrust acquires $3 billion Truist team; some members receive equity

Captrust Financial Advisors has acquired a 13-person Truist Investment Services practice that managed more than $3 billion in client assets, the Raleigh, North Carolina-based RIA and broker-dealer said Wednesday.

Captrust did not disclose terms, though a spokesperson told AdvisorHub that certain members of the Hoge-Barrett Group received equity in the firm. The group, led by Brett W. Hoge and including advisor Alexander W. Barrett, registered with Captrust on Oct. 9, according to registration records cited in AdvisorHub's report.

Hoge said in a statement that Captrust gives his team “greater flexibility in how we serve clients,” along with more technology, investment research and planning resources.

AdvisorHub reported the Captrust move is at least the third billion-dollar practice to depart Truist since July. That month a team joined Wells Fargo's independent Financial Network in Palm Beach Gardens, Florida, and in September another team moved to Rockefeller Global Family Office in Charlotte, North Carolina.

Captrust has been signing large teams all year, including $3.8 billion Alpha Cubed Investments in Southern California and $1.25 billion Stillwater Capital in Pennsylvania, according to AdvisorHub, and bought two New York firms with $1.2 billion in combined assets last month.

The firm advises on more than $1 trillion in assets, was founded in 1997 and is majority owned by employees, with minority backing from private equity firms GTCR and Carlyle Group.

The equity component of the deal was not detailed: Captrust did not disclose the size, vesting schedule or valuation basis of the grants. Wirehouse recruiting packages can include cash and deferred compensation, as in the 16-year agreement paying 550% of revenue that UBS gave two Merrill advisors in September, according to this publication's earlier reporting.