Capital Investment Counsel Inc., one of Colorado’s largest independent investment advisers, has accepted a buyout offer from Compass Bancshares Inc., the two companies said Thursday.
“We have been looking for a primary investment firm in each of our major markets to help us build that business,” said Ed Bilek, Compass’ director of investor relations. “Capital Investment Counsel was a good fit.”
Capital Investment oversees $1.35 billion on behalf of clients, mostly high net-worth individuals living in Colorado and Arizona, where the firm maintains another office in Scottsdale.
Banks have been buying up investment advisers to broaden the range of financial services they offer.
Unlike other banks, Compass does not dictate what investments its advisers must use and doesn’t take custody of clients’ funds, said Chris Johnson, chief executive of Capital Investment.
“Compass’ strategy has been to acquire a firm and leave the name the same and the people intact,” Johnson said.
Johnson and a college friend from Colorado State University, Clark Johnson, no relation, started the firm in 1990.
Compass paid an undisclosed amount of cash for Capital Investment, which will continue to operate under its own name and keep its staff of 28.
Chris Johnson said Compass made an approach about a buyout 2 1/2 years ago, but the firm wasn’t interested.
Capital Investment, however, has grown to the point where aging clients are increasingly clamoring for trust services, something Compass can provide, he said.
Capital Investment is the third investment-advisory firm Compass has acquired. It purchased St. Johns Investment Management Co. of Jacksonville, Fla., in 2002 and Margolis Advisory Services Inc. of Houston in 2005.
Although based in Birmingham, Ala., much of Compass’ $34.4 billion in assets is in the Southwest. The bank has 33 locations in Colorado.
Compass in February accepted a buyout offer from Banco Bilbao Vizcaya Argentaria, one of Europe’s largest banks, based in Bilbao, Spain.
Staff writer Aldo Svaldi can be reached at 303-954-1410 or asvaldi@denverpost.com.
