Pathstone, which is backed by Lovell Minnick Partners, has acquired Cornerstone Capital Group, an investor advisor. No financial terms were disclosed.
ENGLEWOOD, N.J. and NEW YORK, March 1, 2021 /PRNewswire/ — Pathstone, an independently operated, partner-owned advisory firm offering families, family offices, and select nonprofit institutions comprehensive family office services and customized investment advice, and Cornerstone Capital Group (“Cornerstone”), an SEC registered investment advisor whose mission is to help investors achieve targeted environmental and social impact goals without sacrificing investment performance, today jointly announced that Cornerstone joined Pathstone.
Cornerstone’s leadership and expertise in sustainable and impact investing will enhance Pathstone’s existing efforts in this increasingly important approach to portfolio construction. Cornerstone clients will benefit from Pathstone’s broad range of services and excellent technology platform. Culturally, the firms are well aligned: both firms were formed by veterans of large financial institutions who sought to bring innovative new ideas to market; both firms hold a fiduciary duty to clients as our foremost priority; both firms place a high value on employee diversity and well-being; both firms are deeply committed to integrating customized financial and impact objectives in every client’s portfolio.
“The depth and laser focus of Cornerstone, together with the scale and strength of Pathstone, now creates the preeminent Impact Investment Advisory platform in the field,” said Cornerstone’s Founder and CEO, Erika Karp. “With the mission of achieving a more regenerative and inclusive form of capitalism, we go from strength to strength.”
“Pathstone is extremely proud of our long history of leadership and innovation in Impact and ESG,” said Matthew Fleissig, President of Pathstone. “We believe that by empowering clients to amplify the impact of their investments and aligning their goals with their values, clients can enhance returns and foster positive impact. With Erika and her team set to lead and energize these efforts, Pathstone is set to further establish itself as a real thought leader in this critically important area.”
“Pathstone’s leadership in ESG and Impact was one of the factors that attracted me towards joining them as an independent board member,” said Mark Tibergien. “I am thrilled to see Erika and her team joining Pathstone. By combining the fantastic work these two great firms have been leading separately, the world of ESG and Impact investing gets a new, stronger advocate and champion.”
Erika Karp will serve as Pathstone’s Chief Impact Officer and join Pathstone’s Executive and Investment Committees. Other Cornerstone staff, including Chief Investment Officer Craig Metrick and Chief Impact Strategist Katherine Pease, will join the Pathstone team, contributing their significant experience, thought leadership, rigorous analysis, and dedicated client service. With this combination, Pathstone adds offices in Denver and Manhattan and now serves clients representing close to $25 billion in total advisory assets.
Morrison & Foerster served as legal counsel for Cornerstone. Nesvold Capital Partners advised Pathstone and Alston & Bird LLP served as legal counsel.
Pathstone is an independently operated and partner-owned multigenerational family office that offers strategic wealth management and customized investment services to high-net-worth and ultra-high-net-worth individuals and families, family offices, and select institutions.
With decades of experience as trusted advisors, we employ an advocacy-focused model that empowers our clients to define and achieve their unique long-term goals and support their legacy. For more information, please visit www.pathstone.com.
Lovell Minnick Partners (LMP) is a strategic partner of Pathstone and provides ongoing guidance to support the firm’s continued growth.
About Cornerstone Capital Group
Founded in 2013, Cornerstone Capital Group is a financial services firm based in New York. The mission of the firm is to enable investors to achieve targeted impact goals without sacrificing investment performance. Cornerstone works with families and individuals, foundations and endowments, multifamily offices, and other registered investment advisors to develop and manage customized investment strategies to achieve bespoke financial and impact objectives.
About Lovell Minnick Partners
Lovell Minnick Partners is a private equity firm focused on investments in financial services, financial technology and related business services. We partner with outstanding management teams to help grow their companies and build value for investors through a combination of driving growth initiatives, strategic activity and operational improvements. Since our inception in 1999, we have become a leader in our chosen space, raising $3.5 billion of committed capital from leading institutional investors including public and private pensions, insurance companies, endowments and foundations. To date, we have completed more than 50 portfolio company investments.
We seek to invest in management-driven, growth-oriented companies that span the supply chains of investment products, insurance products, credit products and payments. Some of the areas in which we specialize include financial and insurance technology; payments; specialty finance; insurance brokerage and services; asset and wealth management; and related business services. For more information, please visit www.lmpartners.com.