Arabella Advisors expands its reach by acquiring Redstone Strategy

Philanthropic consulting firm Arabella Advisors has acquired another top firm, Redstone Strategy Group, with the goal of expanding its client list, reach, and potential impact on what it called a “rapidly changing world.” Redstone will now operate as a division of Arabella. With the merger, Arabella is “extending our ability to support foundation clients as they pursue solutions to social problems through partnerships, impact investing, grantmaking, and more,” Rick Cruz, Arabella’s president and CEO, said in a statement Thursday. Arabella, based in Washington, D.C., is a nearly 20-year-old firm that works with foundations and impact investors along with families and individuals seeking guidance on effective philanthropy. It also provides nonprofit management services and works with corporations such as Hyatt and JPMorgan Chase. Its clients have included the Bill & Melinda Gates Foundation and the New Venture Fund, a public charity that promotes equity in the United States and in global development. Arabella has helped clients provide funding to nearly 4,000 grantees in more than 100 countries from 2016-2020, according to its 2020 impact report. In the U.S., it is perhaps best known for its work with political donors. Redstone, which was founded in 2003, is headquartered in Boulder, Colorado, and has offices in California and New York. Redstone advises foundations, nonprofits, governments, and impact investors in areas such as climate and energy and economic equity. Its clients include the Center for Global Development, ClimateWorks Foundation, the David and Lucile Packard Foundation, the International Development Research Centre, and The Rockefeller Foundation. The merger was completed on Jan. 13. Arabella spokesperson Steve Sampson declined to disclose how much the firm paid to acquire Redstone. However, he told Devex that Arabella was “excited about the ability of our two firms to provide our clients the opportunity to marry Redstone’s experience doing innovative and in-depth philanthropic strategy work with Arabella’s strengths in strategic implementation, grantmaking, impact investing, and organizational development.” The acquisition will help Arabella “broaden and deepen the set of consulting services it provides to help clients across the philanthropic sector maximize their impact,” Arabella said. “I am thrilled for Redstone to be joining forces with the Arabella team; I couldn’t imagine a better partner as we continue to scale Redstone’s impact,” Ivan Barkhorn, Redstone’s founder, said in the statement on the acquisition. The merger comes on the heels of Arabella being recertified as a B Corporation, a designation given to for-profit companies in the U.S. that focus on both “mission and profit.” In a B Corporation, “shareholders hold the company accountable to produce a financial profit as well as some sort of public benefit,” according to a guide by the U.S. Chamber of Commerce. Arabella first earned its B Corporation certification a decade ago.