Richmond’s biggest local bank has struck a deal in Charlottesville that it hopes will be the first in a series of steps toward growing its wealth management arm.
Union Bank & Trust announced on Tuesday it has acquired Old Dominion Capital Management, a Charlottesville-based investment advisory firm with clients around the country and $300 million in assets under management.
The purchase was finalized last week. Terms were not disclosed.
Those client assets add to Union’s wealth management arm which has about $1.9 billion in assets for clients.
Union CEO Billy Beale said the Old Dominion deal is the first step in a strategic push to grow that part of the bank’s balance sheet.
He said the plan involves two tracts.
“One was putting more emphasis on working with our existing bank customer base to try to sell wealth products, fin advice and retirement planning,” Beale said. “The other was to see if there are opportunities with companies like Old Dominion and whether they had interest in joining a bank to see if we both can get a lift out of it.
“They are the first and we hope it leads to others.”
The bank wouldn’t comment on how much revenue Old Dominion brings into the Union fold. Its client list spans 29 states and is made primarily of high net worth families
Old Dominion Capital Management was founded in Charlottesville in 1989 by UVA’s grads Jim Childress and Mark Thomas.
The company will operate as a subsidiary of Union with all of its seven employees staying on, including Childress and Thomas. Its offices in Charlottesville and Alexandria will also remain in operation.