Fresh Off $30B Blockbuster, MAI Acquires CA-Based RIA

MAI Capital Management, the Cleveland-based registered investment advisor, has acquired a San Mateo, Calif.-based RIA just a few weeks after signing on for a mega-merger with $27 billion Evoke Advisors.

MAI is bringing on Summit Financial Advisors, started by Rafael Velez in 1998. The firm has about $570 million in assets under management.

MAI made the move after announcing in late August its acquisition of Los Angeles-based Evoke. Once the integration is completed, it will run a firm with combined assets of about $60 billion, launching into the ranks of some of the largest RIAs in the market.

Even so, Chairman and CEO Rick Buoncore said the firm still has opportunities for more acquisitions in the near term.

“MAI is continuing to approach M&A with the same disciplined philosophy that has guided us for decades: we look for firms that share our client-first mindset, strong culture and commitment to growth,”  said. “The partnership with Evoke strengthens our platform and creates even more opportunities to attract teams across the country who align with this strategy. That said, we think there is still a lot of potential runway on the M&A front.”

Beyond the California deal for Summit, Bouncore said MAI is exploring expansion opportunities in Texas, Arizona and Southeast Florida, but noted that “our primary focus remains on finding the right fit. We are looking for teams that are ready to grow, adapt and serve clients at the highest level.”

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Velez’s Summit works with tech executives and entrepreneurs in Silicon Valley, and specializes in working with clients on equity-based compensation, concentrated stock portfolios and tax strategies.

Summit’s team of five will remain in place, according to MAI, and Velez will take the role of regional president, senior managing director. Advice Dynamics Partners advised the firm on the transaction.

Regarding the Evoke deal, Buoncore said MAI is “working quickly on integration and are focused on making the transition seamless for both advisors and clients, and this is something that is going to be an ongoing priority throughout Q4 and beyond.”

Evoke, which was founded by Merrill Lynch alumnus David Huo, will keep its name alongside MAI.

“We see a lot of value in the Evoke name and the reputation they have built, especially among high-net-worth clients,” Buoncore said.