BALTIMORE -- Brown Advisory announced today that Beaty Haynes & Associates, Inc. will combine its investment advisory practice with that of Brown Advisory, making the combined firm one of the largest independent advisory firms in the Washington, D.C. area in terms of client assets. Beaty Haynes, based in Bethesda, Maryland, serves high net worth individuals and families and has approximately $1.1 billion under management. The firm is privately owned by John T. "Terry" Beaty, Walter Haynes, Ray McClure and Connie Brown. Brown Advisory is an independent, Baltimore-based investment firm with over $12 billion of client assets, including nearly $1 billion in the Washington metropolitan market.
The combination is expected to provide important synergies in terms of both market presence and the array of available investment offerings. Together, the firms will oversee approximately $2 billion in client assets in the Washington metropolitan region. This increased asset base will add scale to their combined operations, permitting greater efficiency and increased service levels. Enhancing services to clients was the most important consideration in the decision to merge their operations.
From an investment perspective, the combination will be additive to both firms. Terry Beaty is known among his clients as an original and creative investment thinker, and he will bring added depth and perspective to Brown Advisory's existing large-cap portfolio management team, which itself has compiled an excellent long-term record. In addition, his relationships in the direct real estate and private equity investment arenas will enhance Brown Advisory's capabilities in alternative assets. In a similar vein, Brown Advisory's range of investment disciplines will add to the options available to Beaty Haynes' clients. Brown Advisory's dedicated research and portfolio management teams include large-cap growth, large-cap value, small-cap growth, fixed income, and real estate investment trusts. The firm also has developed a series of strategic partnerships with various sub-advisors in order to offer its clients investment opportunities in international equities, small-cap value, hedge funds, and private equity.
The two firms share a clear commitment to remaining independent in ownership as well as thought and perspective. They believe that independence is an important attribute in an era in which many firms face potential conflicts in serving as principals versus their clients or representing clients whose interests are opposed. Beaty Haynes was founded in 1990 and Brown Advisory in 1993. Each has been operated as a closely-held firm dedicated to placing their clients' interests above all else, and they will remain private after they are combined. Approximately 90% of Brown Advisory's employees have an equity interest in the firm--an unusually broad-based ownership structure which the firm's management believes ensures teamwork, continuity of service, and the alignment of its interests with those of its clients. Terry Beaty and his team will become shareholders of Brown Advisory and remain fully involved in serving their client base going forward.
