ESL Federal Credit Union of Rochester, N.Y., announced Wednesday it has agreed to buy the assets of a registered investment advisory firm with $5 billion in assets under management, nearly doubling the credit union’s services in that field.
The credit union declined to disclose how much it would be paying for Alesco Advisors LLC of Rochester. The transaction is scheduled to be completed in November.
Operations within Alesco will continue as usual following closing, with all 27 employees expected to retain their current roles and clients with no changes to their existing relationships. Alesco will become a wholly owned subsidiary of a newly formed CUSO under the credit union.
After the acquisition, the ESL wealth management entities will have more than $9.3 billion in assets under management, and become one of the largest Registered Investment Advisers (RIA) in upstate New York.
Alesco serves institutions, individuals and retirement plans in the Rochester, Buffalo, Syracuse, and Albany markets.
ESL President/CEO Faheem Masood said the acquisition “joins two organizations with strong value and mission alignment, further elevating our wealth management services.”
Jim Gould, president/CEO of Alesco Advisors, said joining ESL “will help ensure Alesco’s long-term success and allows us to continue serving clients with the same personal attention and trusted guidance we have since our founding 26 years ago.”
“ESL will provide resources and capabilities that will enhance the value we deliver,” Gould said. “Together, we are positioned to create even stronger outcomes for the individuals, families, nonprofits, and businesses we serve.”
Other expansions of ESL’s wealth management and investment advisory capabilities in the past eight years have included:
- In 2017, ESL launched ESL Trust Services, a CUSO, adding estate planning services.
- In 2019, ESL Investment Services LLC, an ESL subsidiary and CUSO, acquired Cooper/Haims Advisors adding support for tax planning and comprehensive financial planning to address complex financial needs.
- In 2023, ESL Investment Services announced the expansion of its Retirement Plans Group to offer business owners, corporations, and non-profit organizations with a full suite of retirement plan consultant services.
The Asset & Wealth Management Investment Banking team of Raymond James & Associates served as exclusive financial advisor to Alesco Advisors. Harter Secrest & Emery LLP acted as legal counsel to ESL and Woods Oviatt Gilman LLP acted as legal counsel to Alesco Advisors.
Contact Jim DuPlessis at JDuPlessis@cutimes.com.
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