Moss Adams Spins Off Advisor Unit As Independent $5.8B RIA

Riding RIAs' growing interest in tax and accounting capabilities, Moss Adams is spinning off its advisor unit, Moss Adams Wealth Advisors, and rebranding it as Threadline Wealth almost a year after Moss Adams merged with global advisory firm Baker Tilly. Threadline is transitioning to independence with $5.8 billion in client assets and expects to get its RIA registration in May, Threadline co-founder & CEO Justin Fisher told Financial Advisor. Threadline is launching with the support of strategic partner Cynosure Group, a private equity firm with offices in Salt Lake City, Utah and New York City. Fisher declined to give the size of Cynosure's stake but said they're a "long-term strategic partner" that will share in the decisions regarding "long-term growth strategy and success" of the firm. Management, he added, will have operating control of the business. Threadline, which has offices throughout the West Coast, with major hubs in Seattle, Portland, Ore., San Francisco and Los Angeles, is launching to specifically operate at the intersection of accounting and wealth management while operating as a fully independent RIA, the company said. Threadline said it will preserve its existing leadership team, advisory professionals, and client relationship staff. The RIA comprises some 60 team members, about half of whom are advisors, Fisher said. In the news release announcing the launch, Threadline said it will maintain a "positive, professional relationship with Baker Tilly." "Threadline Wealth reflects our vision for how we'll serve wealthy clients as their needs, goals, and expectations continue to evolve," Fisher, who for the past 17 years led the private client practice at Moss Adams, said in a statement. "For more than 25 years, our team has lived at the intersection of wealth management and accounting, helping clients navigate increasing complexity as their businesses, families, and opportunities grow. This next phase allows us to sharpen that focus, invest in our people and platform, and deliver even greater coordination across every aspect of our clients' financial lives." Threadline said that it will coordinate with CPAs and accounting partners associated with Baker Tilly but will now operate with its own regulatory structure, technology infrastructure, and investment architecture. This model, according to the release, allows the RIA to more aggressively invest in the planning capabilities, talent, and technology needed to serve the increasingly complex needs of middle-market clients such as business owners, executives, founders, and multigenerational families. Management will draw on a team that includes professionals with CPA credentials and tax expertise to serve the needs of these clients that span tax strategy, liquidity planning, investment management, and estate design, Threadline said in the release. "Clients aren't looking for more opinions, they're looking for clarity," Fisher added in the release. "Threadline Wealth is designed to bring family members, business stakeholders, and professional advisors onto the same page, helping clients make confident, informed decisions and stay focused on what matters most to them." The firm will continue to serve clients through a team-based advisory model, supported by an apprenticeship-driven talent development approach that emphasizes technical expertise, collaboration, and long-term career growth, according to the release. Threadline said management plans to continue building a scaled regional boutique, investing in enhanced planning capabilities, technology, and specialized services. Fisher told FA that Threadline will do acquisitions, but organic growth will be its primary growth strategy. He said the RIA operation has been producing net organic growth of 8% to 12%, a pace he aims to maintain. "We definitely will be acquisitive as we go," Fisher said. "I do believe there are going to be other firms and team members (out there) that love this wealth and accounting coordination to serve" the client type Threadline has. One key of the launch transaction is that it will dramatically expand the shareholder group, according to Fisher. "That's actually really core to what we want to go do is to continue to move down a path of increased employee ownership within Threadline Wealth," Fisher said, "Really getting those advisors and team members aligned with long-term growth, sustainable growth is something we're excited about." Threadline Wealth engaged Advisor Growth Strategies as its financial advisor and Alston & Bird LLP as its legal counsel in connection with the transaction.