Capital Resource Holdings, Chicago, bought Investment Counseling Inc., San Francisco, to beef up consulting services to money management companies.
Capital Resource Holdings will combine its investment management consulting services group with Investment Counseling to form a new unit, IC Strategies. The new unit will integrate CR's investment management performance analysis, trade cost evaluation, and marketing and sales consulting services with ICI's strategic consulting services for money management companies.
Paul David Schaeffer, managing partner at ICI, will become executive vice president of IC Strategies and will oversee the unit. The merged unit will be based in San Francisco with offices in Chicago, Boston, New York and West Conshohocken, Pa. Robert Hudon, executive vice president of Capital Resource's investment management consulting unit, will oversee sales and marketing.
Investment Counseling was founded in 1989 by Chas Burkhart, who left last year to form Rosemont Partners LLC, West Conshohocken, a merchant bank and early stage financier to money management companies. CR purchased Mr. Burkhart's interest in ICI.
Mr. Schaeffer said ICI had been approached by several potential buyers, which he declined to name. CR was the only suitor that "shared our vision of building the leading knowledge provider to financial services industry."
The two firms serve slightly different niches, with Capital Resource focusing more on the institutional market and ICI more on retail and high net worth.
CR has been on an acquisition spree for some time, pulling together a full-service investment consulting firm that provides investment management advice for institutional investors from one arm of the company, Capital Resource Advisors Inc., Chicago, and performance data and now strategy advice for money management companies from a separate arm. The decision to separate the investment management consulting and vendor consulting businesses was recent and deliberate, said Sonny R. Tucker, a director of the parent company and chief executive officer of IC Strategies.
"We split the two businesses in order to avoid any accusation of conflict of interest and to prevent any possible contamination of manager data," Mr. Tucker said.