Willow says Carnegie WM's platform will help it pull in more HNW business. Wayne, Pa.-based Willow Financial Bancorp has purchased Exton, Pa.-based Carnegie Wealth Management for an undisclosed sum.

Carnegie is a 22-year-old RIA that supervises $200 million for clients in 40 states including retirement-plan administrators, foundations and high-net-worth individuals. Its founder Roy Johnston will join Willow's executive staff and continue to manage Carnegie's operations and staff. In addition to its Philadelphia-area headquarters, Carnegie has an office in Moultonboro, N.H.

They fit

"This transaction fits perfectly with our strategy to diversify our core banking business through the acquisition of entrepreneurial fee-based businesses," says Donna Coughey, president and CEO of Willow. "Carnegie is a strong addition to our wealth management operation, and Roy Johnston has built an extremely successful operation with many loyal clients and a hands-on, customized approach to wealth management."

The addition of Carnegie will boost Willow's total assets under management to more than $900 million and expand the company's high-end investment offerings. Carnegie takes a consultative approach to non-traditional investments like private placements, private equity, and limited partnerships in addition to traditional equity and fixed income investments. This, says Coughey, "provides a unique, differentiated business model that will be appealing to our more sophisticated wealth management clients."

Johnston says Willow is a good fit for Carnegie. "Our cultures are extremely similar, with a personalized approach to customer relations based on thorough knowledge of each client's financial objectives, risk appetite, and overall financial picture."

It also didn't hurt that "Willow provided the opportunity for us to continue to manage and grow our business, while monetizing the investment in Carnegie for estate planning purposes," adds Johnston. "I believe that our clients will benefit from many of the banking products that Willow brings to the table, including commercial lending, cash management and private banking services."

Willow Financial Bancorp is the holding company for Willow Financial Bank, a community bank with 29 branches in southeastern Pennsylvania. -FWR

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