34bn First Manhattan CEO talks 'opportunistic' M&A plans

The article below was published in CityWire RIA on April 22, 2025.

While many large RIAs have developed a penchant for frequent acquisitions over the last few years, others, like $34bn First Manhattan, have taken a different path.

On the M&A side, the independently owned firm has largely waited on the sidelines. The firm made its first deal in just over three years at the beginning of April, bringing in Grand-Jean Capital Management, a $500m San Francisco-based RIA that largely works with high net worth clients.

The deal’s size and geographic location marked a major change for First Manhattan from its previous acquisition, which saw fellow New York-based RIA MRJ Capital, a $168m firm, join in 2022.

First Manhattan chief executive Zac Wydra told Citywire the Grand-Jean deal represents that First Manhattan is taking a ‘slightly more active’ approach to dealmaking than it has in the past, as the firm takes stock of its growth.

‘We’ve meaningfully invested in our capabilities at the management level, so operationally, we are functioning at a level of efficiency and capability that make me confident that we can execute these types of opportunistic transactions in a way where the clients will be really well-served,’ Wydra said.

Those internal investments include putting resources toward the firm’s technology stack, research team, advisory talent and overall tent of services.

On the services side, Wydra tipped that one of the RIA’s most significant upcoming developments will be the launch of an affiliated trust company, which is a step several other large RIAs have recently taken. Wydra said that launch is likely slated for Q1 of 2026.

First Manhattan primarily works with high-net worth individuals, and has 2,750 clients, according to a firm spokesperson. The RIA also has around 140 employees, including 35 investment professionals.

Originally launched in 1964, First Manhattan Co. is the RIA arm of FMC Group Holdings. The company also maintains an affiliated broker-dealer arm, First Manhattan Securities.

Along with Wydra, the company is led by executive chairman Robert Gottesman, the son of First Manhattan founder David Sanford Gottesman. David, who died in 2022, was an original partner of Warren Buffet’s in the partnership that eventually became Berkshire Hathaway.

Wydra said that while geographic brick-and-mortar expansion is ‘an important step’ in First Manhattan’s evolution, the company is willing to remain patient and focus on building relationships as it develops its M&A pipeline.

He added that while First Manhattan pays attention to the large serial acquirers throughout the RIA world, he does not directly view them as competitors because of their dependency on outside capital and the external growth pressures they may face as a result.

By contrast, Wydra said First Manhattan is ‘definitively not for sale’ when it comes to taking on outside capital.

‘We don’t need to grow at a rate other than what makes sense,’ Wydra said. ‘So when we identify people that meet the description and the criteria [for acquisitions], we will act, but what we will not do is violate our core principles in an attempt to grow at a rate that puts at risk who we are culturally and our ability to execute every transition in a really high quality way.’

While First Manhattan largely grows through referrals, Wydra said a significant point of emphasis for the firm is its focus on multi-generational client relationships.

Although younger investors are increasingly opting against advisors — a significant point of concern across the RIA space — Wydra said he’s confident that earning the trust of families over decades and regularly checking in with wealth inheritors and other family members as they reach life milestones will continue to pay off.

‘We have lots of conversations with children and grandchildren of clients when they have their first child about 529 accounts and starting to save for college,’ Wydra said. ‘So they really appreciate those conversations and that advice. So does that guarantee they will want to work with us, no it does not guarantee it, but building a strong relationship meaningfully improves the probability.’