Consolidation wave sweeps through Rochester’s wealth management sector

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John DiPasquale is optimistic about the future of the Rochester-based wealth management firm he leads following news that Cobblestone Capital Advisors is joining forces with national investment advisory firm CAPTRUST Financial Advisors. 

“Joining CAPTRUST not only strengthens everything we’ve built for our clients but also expands what’s possible for our future,” said DiPasquale, Cobblestone’s CEO. 

The transaction, finalized in September, brings Cobblestone’s 42 employees — including 15 advisors — and $3.1 billion in wealth and institutional assets under advisement into the Raleigh, North Carolina-based firm’s growing network. Cobblestone will transition to the CAPTRUST brand while continuing to serve clients from its Rochester office. 

DiPasquale said Cobblestone leadership worked with an advisory firm to find a company that complemented the local firm’s culture. The deal with CAPTRUST was the result of about a year’s worth of work.  

As a result of the deal, Cobblestone has access to CAPTRUST’s extensive resources and access to its institutional clients already in the region.  

For CAPTRUST, the partnership adds an established Upstate New York presence to existing offices in New York City and Lake Success, Long Island. With Cobblestone’s addition, the firm now employs 87 people across the state. 

“We’re always looking for firms that not only deliver exceptional client service but also share our long-term vision and cultural DNA,” said Rick Shoff, managing director at CAPTRUST. “We know there is so much opportunity for us know and we’re excited to be in Rochester.”  

CAPTRUST has expanded rapidly through acquisitions, now employing more than 1,800 people in over 80 offices nationwide. In 2025, its nonprofit arm — the CAPTRUST Community Foundation — donated $800,000 to 80 charities during its sixth annual Giving Day and the Rochester area will now be included in those efforts, Shoff said.  

A consolidation trend 

Cobblestone’s move reflects a broader trend sweeping across the wealth management industry. A 2025 global report by consulting firm Oliver Wyman and Morgan Stanley predicts 1,500 significant transactions over the next five years, with 20% of wealth and asset managers expected to be acquired by 2029. 

Economies of scale, rising technology demands and an aging advisor base are driving the wave of mergers and acquisitions, especially among smaller, independent firms. 

That trend is clearly visible in the Rochester region, where several prominent wealth managers have recently announced deals. 

Last week, ESL Federal Credit Union revealed plans to acquire Pittsford-based Alesco Advisors LLC, a registered investment advisory firm with more than $6 billion in assets under advisement. The deal, expected to close in November, will allow Alesco to retain its name and continue operations from its current offices at 120 Office Park Way. 

“Together, we are positioned to create even stronger outcomes for the individuals, families, nonprofits, and businesses we serve,” said Jim Gould, Alesco’s president and CEO. 

ESL leaders say the acquisition broadens the credit union’s financial services offerings and extends its reach across the Greater Rochester, Buffalo, Syracuse, and Albany markets. Both organizations plan to continue their community giving and employee volunteer efforts. 

In August, Kansas-based Mariner announced its acquisition of Rochester’s Forté Capital, which brought roughly $1.6 billion in assets under advisement. The firm has since rebranded under the Mariner name. 

“For more than 25 years, we’ve built Forté Capital around the idea that sound financial guidance should evolve with our clients,” said David Henion, managing director at Forté. “Joining Mariner allows us to leverage scale and deepen client relationships.” 

In 2024, national independent wealth management firm Wealth Enhancement Group purchased Rochester’s Wealth Management Group, adding $117 million in assets under management.  

That same year, California-based Modern Wealth Management acquired Beltz Ianni & Associates, a corporate retirement and wealth management firm, adding more than $1.2 billion in assets. 

And in recent years, major regional players like Manning & Napier Inc. and Karpus Investment Management have been acquired by out-of-area firms, signaling a reshaping of the local financial landscape. 

Staying independent

Despite the flurry of deals, not all local firms are interested in selling. 

Pittsford-based Armbruster Capital Management, an independent, employee-owned firm with more than $1 billion under management, continues to chart its own course.

CEO Mark Armbruster said that while consolidation is “unprecedented but not unexpected,” his firm receives multiple acquisition calls each week — and consistently declines. 

“It’s a very aggressive marketplace,” Armbruster said. 

He attributes the surge in activity to aging firm founders, high market valuations and the appeal of the industry’s recurring revenue model. 

Similarly, Craig Cairns, president and majority owner of Howe & Rusling, said his firm has also attracted significant outside interest but intends to remain locally owned. 

“Founders and owners are getting older, and private equity is willing to pay high prices,” Cairns said. “But we see our independence as a strength — especially for our clients.” 

Cairns, who knows many of the local firms’ owners who have sold, feels they didn’t take the decision to sell lightly and were doing what they believed was in the best interests of everyone associated with the firm.   

That said, outside firms and private equity buying local businesses in almost any sector has not historically turned out the way the seller originally envisioned, so the impact on the community at-large is not yet known, Cairns noted. 

“I question whether this a positive or not,” he said. 

A shifting local landscape 

George Conboy, chairman of Brighton Securities Corp., said the wave of consolidation is driven by two forces: economics and demographics. 

“It’s easier to buy an investment business than to build one,” Conboy said, adding that often means those firms and venture capitalists who want to be in the sector are willing to pay a lot to do so.

He noted that a strong, long-running bull market has made U.S. companies — and by extension, American wealth managers — attractive global investments. 

Conboy doesn’t expect the local impact to be too dramatic. National firms like Morgan Stanley and Merrill Lynch have long operated in Rochester, and several independent players continue to thrive. 

“Still, you can’t escape the idea that there’s just a little something lost when your neighbors don’t run the firm anymore,” he said. 

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