Emigrant Bancorp Acquires Fortis Management Group

Emigrant Bancorp, a privately held financial institution with over 175 years of history, has acquired Fortis Management Group, a boutique multi-family office firm, in a strategic move to expand its wealth management capabilities. The acquisition marks Emigrant's formal entry into the comprehensive family office services market with the launch of Emigrant Family Office, a new division designed to serve ultra-high-net-worth families and their complex financial needs.

The deal, announced on January 15, 2025, positions Emigrant Bancorp to compete more aggressively in the rapidly growing family office sector, which has seen explosive growth as wealth concentration among the ultra-rich continues to accelerate globally.

The acquisition of Fortis Management Group represents a calculated expansion of Emigrant's service offerings beyond traditional banking into the specialized realm of family office management. While financial terms of the transaction were not disclosed, industry observers note that the deal provides Emigrant with immediate access to established client relationships, experienced wealth advisors, and proven operational infrastructure in the family office space.

"This acquisition aligns perfectly with our mission to provide comprehensive, personalized financial solutions to our clients," said Howard P. Milstein, Chairman of Emigrant Bancorp, in the company's announcement. "By integrating Fortis's expertise with our deep banking and lending capabilities, we can offer families a truly integrated platform that addresses every aspect of their financial lives."

Fortis Management Group has built a reputation for delivering customized wealth management, investment advisory, tax planning, and estate planning services to a select group of ultra-high-net-worth families. The firm's holistic approach to managing family wealth across generations meshes well with Emigrant's existing private banking operations, creating potential for significant cross-selling opportunities and enhanced client service delivery.

The timing of this acquisition reflects broader trends in wealth management. According to recent industry data, the number of single-family offices globally has grown substantially, with estimates suggesting over 10,000 such entities now operate worldwide. Multi-family offices, which serve multiple families under one organizational umbrella, have also proliferated as wealthy families seek sophisticated solutions without the overhead of establishing their own dedicated offices.

The family office market has experienced remarkable growth, driven by several converging factors: increasing wealth concentration, more complex regulatory environments, growing interest in alternative investments, and generational wealth transfer challenges. Research from Campden Wealth indicates that family offices collectively manage an estimated $6 trillion in assets globally, with that figure projected to grow significantly in coming years.

The newly launched Emigrant Family Office will provide an integrated suite of services designed specifically for families with substantial wealth and complex financial situations. According to the announcement, the platform will combine Fortis's existing capabilities with Emigrant's banking infrastructure to deliver comprehensive solutions.

Key service offerings include:

Investment Management and Advisory: Customized portfolio construction across public and private markets, including access to alternative investments such as private equity, hedge funds, and real estate partnerships. The platform will leverage both Fortis's existing investment relationships and Emigrant's balance sheet capabilities.

Tax and Estate Planning: Sophisticated strategies to minimize tax liabilities across generations, coordinate with external advisors, and structure wealth transfers in tax-efficient ways. This includes trust administration, charitable giving strategies, and succession planning.

Banking and Lending Services: Direct access to Emigrant's banking capabilities, including specialized lending products, cash management solutions, and deposit services tailored for high-net-worth families.

Family Governance and Education: Support for establishing family governance structures, educating next-generation family members about wealth stewardship, and facilitating family meetings and decision-making processes.

Philanthropic Advisory: Guidance on charitable giving strategies, foundation management, impact investing, and mission-aligned investment approaches.

The launch of Emigrant Family Office places the institution in competition with both established multi-family offices and larger financial institutions that have built out similar capabilities. However, Emigrant's positioning offers some distinct advantages.

Unlike publicly traded financial institutions, Emigrant's private ownership structure may appeal to families seeking a partner with a long-term orientation and alignment of interests. The bank's 175-year history demonstrates institutional stability and experience navigating multiple economic cycles—attributes highly valued by families thinking in generational terms.

The integrated approach also addresses a common pain point in wealth management: coordination across multiple service providers. Many wealthy families work with separate firms for banking, investment management, tax planning, and estate planning, creating coordination challenges and potential gaps in service. Emigrant Family Office's one-stop-shop model aims to eliminate these inefficiencies while maintaining specialist expertise in each area.

This acquisition is part of a broader trend of consolidation in wealth management and family office services. As competition intensifies and clients demand more sophisticated capabilities, smaller firms face pressure to either scale up or affiliate with larger organizations that can provide broader resources.

Traditional banks and financial institutions have increasingly recognized family office services as a strategic growth area. The ultra-high-net-worth segment represents not only significant assets under management but also opportunities for lucrative fee-based revenue from specialized services, lending relationships, and investment banking activities.

Recent years have seen numerous similar transactions. Major financial institutions including Goldman Sachs, Morgan Stanley, and JPMorgan have all expanded their family office capabilities through combinations of organic growth and acquisitions. Meanwhile, private equity firms have also entered the space, backing consolidation strategies that combine multiple family offices under unified platforms.

The Fortis Management Group team will transition into leadership roles within Emigrant Family Office, ensuring continuity of client relationships and preservation of the firm's client-centric culture. Michael Goldberg, formerly Managing Partner at Fortis, will serve as President of Emigrant Family Office, reporting directly to Emigrant Bancorp's executive leadership.

Integration plans emphasize maintaining the personalized service model that existing Fortis clients value while gradually introducing enhanced capabilities made possible by Emigrant's resources. The combined entity will operate from multiple locations to serve clients nationally, with plans for measured expansion into additional markets over time.

"Our clients have entrusted us with their families' financial well-being, and that responsibility doesn't change with this transaction," Goldberg noted. "If anything, we're now better positioned to serve them with enhanced capabilities while maintaining the same personalized attention they've come to expect."

A key component of the integration will involve harmonizing technology platforms to deliver seamless service across the expanded organization. Family offices increasingly rely on sophisticated technology for portfolio reporting, consolidated financial views, document management, and communication with clients.

Emigrant plans to invest in upgrading technology infrastructure to support the family office platform, including implementation of advanced reporting tools and client portals that provide real-time access to consolidated financial information. This technological investment reflects broader industry trends toward digitalization in wealth management, though family offices typically balance technology adoption with the high-touch, personalized service that defines the sector.

For existing Fortis clients, the acquisition promises expanded capabilities while maintaining relationship continuity. Access to Emigrant's balance sheet opens up enhanced lending possibilities, including specialized financing for real estate investments, business ventures, or liquidity needs that smaller family offices typically cannot provide directly.

The deal may also signal intensifying competition in the family office space, potentially benefiting clients through improved service offerings and competitive pricing. As more institutions build out comprehensive family office capabilities, the bar for service quality and breadth of offerings continues to rise.

However, some industry observers caution that integration challenges are real. Mergers between boutique advisory firms and larger institutions don't always deliver promised benefits if cultural differences, bureaucratic processes, or misaligned incentives create friction. Success will depend heavily on Emigrant's ability to preserve the client-focused culture that made Fortis successful while effectively leveraging the combined entity's enhanced resources.

While the immediate focus will be on successfully integrating Fortis and serving existing clients, Emigrant has signaled ambitions for measured growth of its family office platform. The company indicated that it will consider both organic growth through recruiting experienced advisors and opportunistic acquisitions of other family office firms or wealth management practices that align with its strategic vision.

The family office sector's growth trajectory appears robust. Demographic trends point toward the largest intergenerational wealth transfer in history over the coming decades, with an estimated $84 trillion expected to pass from Baby Boomers to younger generations through 2045. This transition creates both challenges and opportunities for family offices as they help families navigate wealth transfer while engaging next-generation members who may have different values and priorities.

Additionally, growing wealth globally—particularly in technology, finance, and entrepreneurship—continues to create new ultra-high-net-worth families seeking sophisticated wealth management solutions. Many of these families, particularly entrepreneurs who have built and sold businesses, seek partners who understand complex financial situations and can provide holistic advice beyond simple investment management.

The family office sector operates in a complex regulatory environment that varies based on the specific services provided and the structure of client relationships. While single-family offices serving only one family can qualify for certain regulatory exemptions, multi-family offices typically must register as investment advisers with either state or federal regulators.

Emigrant Family Office will operate as a registered investment adviser, subject to SEC oversight and fiduciary standards requiring that it act in clients' best interests. This regulatory framework provides important client protections while also imposing compliance obligations on the firm.

The banking relationship component adds another layer of regulatory oversight, as Emigrant Bancorp remains subject to banking regulations and supervision. This dual regulatory framework—covering both banking and investment advisory activities—requires careful navigation but also demonstrates institutional commitment to compliance and appropriate operational controls.

Emigrant Bancorp's acquisition of Fortis Management Group and launch of Emigrant Family Office represents a significant strategic move by a legacy financial institution to expand into the high-growth family office sector. The transaction combines a boutique firm's specialized expertise and client relationships with a major bank's resources and stability, creating a platform designed to serve ultra-high-net-worth families comprehensively.

Success will ultimately depend on execution: maintaining the personalized service culture that defines quality family offices while effectively leveraging enhanced capabilities to deliver superior client outcomes. Early indications suggest thoughtful planning around leadership continuity, client communication, and integration approach—all positive signs for successful execution.

For the broader market, this deal illustrates continuing consolidation trends in wealth management and the strategic importance that major financial institutions place on serving the ultra-wealthy. As competition intensifies and client expectations rise, we can expect continued evolution in how family office services are delivered, with successful firms differentiating through some combination of specialized expertise, integrated capabilities, and genuine alignment with client interests.

The family office landscape will continue evolving as demographic shifts, wealth creation, and market dynamics shape client needs and provider capabilities. Emigrant's entry into this space positions it to participate in that evolution while serving families navigating increasingly complex financial landscapes.