When Stuart Brown left a job as partner at a private equity firm to start HamptonRock in 2019, he knew it was a risk to become an entrepreneur. “It was a very hard decision. I spent about a year putting together a business plan,” he said.
But he had conviction in his thesis: Texas, with its diverse and fast-growing economy, lacked mergers and acquisitions advisory services for middle market businesses, generally valued under $1 billion. While the state was rife with large commercial banks, at the time, few firms specialized in guiding mid-market owners through sales, capital raises, or liquidity events.
That gap became HamptonRock’s opening. Stuart launched in Dallas, weathering the pandemic with just one employee and one closed deal. By staying lean and nimble, the firm was able to survive an uncertain economy and emerge ready to scale.
Today, the firm has multiple service offerings and 25 employees across Dallas, Houston, and Austin, advises clients nationwide, and is on track for its most profitable year yet. Additionally, other financial institutions are seeing similar opportunities and rushing into Texas, fueling the development of “Y’all Street”—the nickname for Dallas’s growing financial district.
Expanding beyond M&A
From the beginning, HamptonRock specialized in mergers and acquisitions (M&A) advisory services—helping families and founders find buyers, structure deals, and close transactions. However, Brown knew that staying solely in M&A lacked differentiation in the marketplace and created unpredictable revenue as the firm moved from one transaction to another. To diversify the firm’s growth channels, Brown and his co-founder of the investment banking practice, Stephen Hardin, made the strategic decision to launch a transaction advisory services division, co-founded by Daniel Villarreal, Philip Fritsche and Ryan Bailey. The practice provides financial due diligence, business analytics, accounting advisory, and CFO services for top-tier private equity firms. These reocurring services created steadier income and helped deepen the company’s relationships with institutional investors looking for deals, as well as institutions in need of transaction advisory support.
From there, Brown established a wealth management division, led by David Dodson, to help business owners manage sale proceeds, plan estates, and invest for the long term. “We were very intentional about setting up business lines that solve problems across the financial spectrum,” says Brown.
Dodson adds that being founders themselves has helped shape the way HamptonRock identifies new ways to serve clients. “It simply changes your perspective,” he says. “It helps you to align with your clients and understand their vision, because you’re sharing those same values.” This cross-service model has allowed HamptonRock to create several touchpoints with clients. Family businesses selling to private equity firms often meet HamptonRock’s transaction advisory team; those same relationships can lead to wealth management engagements. Brown says the expansion has been deliberate and anchored in solving client needs at every stage of growth and liquidity.
A people-first culture
While he took a highly strategic approach to its services, Brown also made sure that the firm’s internal culture was a top priority. He drew on lessons from both global Wall Street firms and small boutiques, taking what he’s seen has worked and discarding what didn’t. The result: a firm that prioritizes culture and a collaborative team environment, provides exceptional service performed by exceptional people who uphold the highest standards of integrity and innovation.
The firm’s growth hasn’t come without surprises. COVID and a banking crisis threatened the firms’ capital several years ago. “You can’t plan for everything,” says Brown. “You just have to be focused, nimble, have a good team in place, and stay optimistic when unforeseen things happen.” This agility, paired with the firm’s diverse service offering and the team’s methodical approach to fostering client relationships is what earned the company a spot on this year’s Inc. 5000 list.
His advice to aspiring entrepreneurs seeking to break into an underserved market? “Don’t be afraid to take the plunge. Believe in yourself. Be willing to bet on yourself and know that in order to build something differentiated, financial performance is just one component—it’s also about creating opportunities that inspire the next generation of leaders.”