Arax Advisory Partners, the $43 billion RIA platform backed by private equity firm RedBird Capital Partners, has acquired The Oak Group, a Poughkeepsie, New York-based registered investment advisor that managed approximately $1.5 billion in client assets while operating under Wells Fargo. The deal, announced Tuesday, marks Arax's second acquisition in the Hudson Valley this year, following its purchase of Omni Financial Advisory Group in March.
The Oak Group was founded in 2003 and is led by advisors Ryan Peek and Gary Ben-Ezra. The team includes eight advisors and three support staff who will join Arax Advisory Partners as W-2 employees. The firm serves a client base concentrated in the Hudson Valley and the broader tri-state area, a region Arax founder and CEO Haig Ariyan described as "oftentimes an overlooked and under-appreciated market" with significant generational wealth.
"The opportunity in the Hudson Valley is very significant," Ariyan said. "There's a meaningful population there that's in need of wealth management advisory services. So we think our growth opportunity there is significant."
Arax Advisory Partners, which launched in 2022, has now added five firms this year, extending its footprint across 15 states. The platform is one of three RIA models under Arax Investment Partners, which also includes Ashton Thomas Private Wealth for W-2 employees and US Capital Wealth, which focuses on the Texas market. Ariyan, previously president of Raymond James-owned investment bank Alex Brown, said the firm is seeing strong interest in both its W-2 partnership model and its 1099 supported independence option.
The acquisition reflects a broader trend of advisors leaving wirehouses and large bank-owned platforms for independent RIA models. Ariyan noted that independent firms must differentiate the client experience from that of wirehouses or bank-owned wealth managers. "It's very tangible for clients to feel the difference working with a partner than working with an owner," he said, adding that Arax equips advisors with planning resources, balance sheet expertise, and investment platform flexibility.
RedBird Capital Partners, which backs Arax, is known for its sports investments, including stakes in the Boston Red Sox, AC Milan, and the YES Network. The private equity firm's backing has enabled Arax to pursue an aggressive acquisition strategy, targeting breakaway advisors and teams seeking greater independence.
The Oak Group's move to Arax comes amid a wave of advisor departures from Wells Fargo, which has been restructuring its wealth management division. In a separate development, Sanctuary Wealth recently backed an LGBTQ+-focused RIA launch, highlighting the growing diversity of independent platforms.
Ariyan emphasized that the Hudson Valley remains a key growth area for Arax, with plans to continue recruiting advisors from wirehouses and regional banks. "The independent wealth firms are going to be under more and more pressure to make sure that the client experience is being felt as differentiated," he said. "We are seeing a lot of interest in our W-2 partnership affiliation with financial advisors."
The deal brings Arax's total assets under management to $43 billion, up from $42 billion earlier this year. The firm now operates in 15 states and is expected to announce additional acquisitions in the coming months, particularly in the Northeast and Texas markets.
