Consultiva Securities is the 5th largest broker dealer by asset size in Puerto Rico and services an institutional client base including governments, foundations, endowments, corporations and pensions plans, as well as a robust network of high net worth individuals and families.
The seller was the parent company, Consultiva Internacional, whose focus will continue to be institutional and high net worth financial advisory and consulting. The broker-dealer will operate as Fairbridge Capital Markets and the transaction includes a servicing agreement to provide brokerage services to Consultiva Internacional.
“We are very excited about this acquisition and are looking forward to working strategically with Consultiva Internacional. The transaction will also allow us to offer brokerage services in the U.S. to the many institutions our management has long worked with,” said Ed Prado, president of Fairbridge Capital Partners and Fairbridge Capital Markets.
“With the large amount of dislocation in the local municipal bond market along with the recently implemented tax incentives, we view Puerto Rico as ripe with opportunity,” he said.
Puerto Rico recently passed several tax incentives designed to attract hedge funds, private equity and billionaires. As Puerto Rico makes a push to become a banking haven it has created a revived interest in local banking and brokerage entities that will ultimately benefit from such, Fairbridge said.
Fairbridge Capital Markets will continue to maintain its headquarters in Puerto Rico while adding offices in Newport Beach and Chicago.
“Fairbridge is the ideal buyer of our broker dealer unit, they bring seasoned management a keen understanding of our client base and culture while possessing many relationships on the mainland,” said Myrna Rivera founder and CEO of Consultiva Internacional.
“This is part of a strategic plan that will ultimately allow Consultiva Internacional to focus on its core advisory/consulting business, while our clients can enjoying the benefits of access to markets and services through a larger, independent broker-dealer,” said Rivera.