Merchant-backed RIA's deal spree includes a new Adidas family office

Apollon Wealth Management has made investments in two RIAs and is launching a new family office for Adi Dassler's heirs.

Merchant Investment Management-backed Apollon Wealth Management has made a trio of deals, including a partnership to relaunch a family office for the family behind Adidas.

In addition to its plan to launch the Adi Dassler International Family Office, the $635m firm has also bought stakes in a pair of RIAs: Greenwich, Conn.-based BH Asset Management, and Chicago-based Podesta Capital Advisors. Apollon has purchased a minority stake in $79m BH Asset Management that will step up to full control and a 20% stake in $110m Podesta Capital Advisors.

For Apollon, which is based in Mount Pleasant, S.C., the deals open up new opportunities for the firm.

‘BH Asset Management is a true subadvisor on a lot of different custodial platforms. It continues to expand our reach across different custodial platforms. Now we have true money managers in addition to our wealth advisors that we currently have,’ said Michael Dolberg (pictured), Apollon’s chief executive. ‘With Podesta Capital Advisors, that is a great partnership in the sense that they have a tremendous track record dating back over 38 years… it opens up another market for us in Chicago. These are experienced money managers with a great track record. They can really help round out the offering to our clients.’

While the BH Asset Management purchase is structured as a succession-focused buyout and the Podesta Capital Advisors investment is a straightforward minority stake, the new Adi Dassler International Family Office takes on a more complex structure. Apollon Wealth Management will have a 25% stake in the enterprise: the remainder is owned by Dassler’s heirs and Brad Bradham, chief executive of the Adi Dassler Family Office, a predecessor firm.

Adi Dassler Family Office, the old entity, will shut down, Dolberg explained. The advisors at the old office will remain with their affiliated bank, Capital Union Bank, which is based in the Bahamas. Adi Dassler died in 1978. The Adi Dassler Family Office was the brainchild of three of his grandchildren, the sons of Inge Dassler, Adi’s oldest daughter.

The Adi Dassler International Family Office will start fresh and has already brought on board one advisor: ex-Alex Brown advisor Allen Johnson. Johnson oversaw around $100m in client assets while at the Raymond James-affiliated entity.

‘The family office takes our firm to another level as far as what we can do for our ultra-high net worth clients,’ Dolberg said.

In addition to its Mount Pleasant headquarters, Apollon has two offices in South Carolina, one in Charlotte, one in Augusta, Ga. and one in Portland, Ore. The firm is minority-backed by Merchant Investment Management, a serial investor in RIAs.

Merchant played a key role in arranging the Dassler deal, Dolberg said.

‘Merchant actually knew some of the people within the family office,’ he explained. ‘I think just having their background, their network and understanding the importance of concierge services and family office services for ultra-high net worth people, I think Merchant helped drive home that point and helped get that deal across the finish line.’