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Capital Advisors, Southwest Financial set
cooperative agreement
By LAURIE WINSLOW World Staff Writer Published: 1/6/2012 2:26 AM
Money manager Capital Advisors Inc. has acquired about $50 million in managed assets from another Tulsa-based company, Southwest Financial Services LLC.
The acquisition, which became effective Jan. 1, creates a regional investment advisory firm with more than $1 billion in assets under management. The combined companies will serve more than 700 clients from offices in Tulsa, Houston, Dallas and Oklahoma City.
Southwest clients will become clients of Capital Advisors. They will have a new contract, but their terms and fee structure will remain the same, said Keith Goddard, president of Capital Advisors.
The vast majority of the clients won't have to do anything in terms of moving their assets, he added.
"The combination with Southwest is a partnership of two like-minded investment advisors," he said. "Everyone at Capital Advisors hopes to develop a strong relationship with each client of Southwest Financial."
Dave Cole, managing partner of Southwest Financial, will coordinate introductions between clients of Southwest Financial and the executive team at Capital Advisors.
"We welcome Dave Cole's support for the next few years as we build these important relationships," Goddard said.
He noted that the principals of both companies had been aware of each other's business for several years.
"From our perspective, this gives us new relationships, new perspectives and broader resources to benefit all of our clients," Goddard said, adding, "Because we manage our strategies in-house, we can deliver asset management at a lower cost for the clients than the affiliation that Southwest had before."
Cole said Southwest Financial had wanted to increase its asset base in order to get better leverage and buying power for its clients in terms of pricing models for investment products.
Also, "Some of our stockholders are getting to the point where they want to look to a reasonable exit strategy to maximize the value of the business," Cole said.
Founded in Tulsa in 1978, Capital Advisors combines fundamental analysis to uncover value in the asset markets with quantitative disciplines to manage risk. The firm's investment philosophy is applied to six distinct investment strategies that serve as building blocks for client portfolios.
Established in 2004, Southwest Financial manages investments for high-net-worth individuals in Oklahoma and Texas.
Original Print Headline: Financial firms join forces for bigger base
Laurie Winslow 918-581-8466
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