Private equity firm Lovell Minnick Partners LLC and Kanaly Trust announced Monday that Lovell Minnick has agreed to acquire Kanaly, an independent trust company providing wealth management and financial planning services to families, individuals and estates.
Kanaly Trust has nearly $2 billion in assets under management. For more than 35 years, the Houston-based Kanaly family firm has offered clients financial planning and trust and estate services along with outside manager selection. The firm serves as trustee or executor for estates totaling more than $2.5 billion. The transaction is expected to close in the fourth quarter of 2012.
Proceeds from the transaction will be used to provide liquidity to certain existing shareholders and promote future company growth, according to a news release from both companies. The Kanaly family and members of the senior management team of Kanaly Trust will retain a material investment in the firm and continue their focus on clients.
Lovell Minnick Partners is a private equity firm providing buyout and growth capital to companies in the financial services industry. From its offices in the Philadelphia and Los Angeles areas, Lovell Minnick has raised more than $850 million in capital from private and institutional investors and has completed investments in more than 30 companies.
Drew Kanaly will remain in his role as chairman for Kanaly Trust, and his brother Jeff Kanaly will serve as vice chairman. Bill Rankin, most recently president and CEO of Shelterwood Financial, is expected to join Kanaly Trust as CEO effective at the close of the transaction. Rankin has held executive roles at Rockefeller & Co., Atlantic Trust, Stein Roe Investment Counsel and Mellon Bank.
“We are excited to join with Lovell Minnick and Bill Rankin as we continue to pursue the vision of outstanding and non-conflicted client service that my father believed in 37 years ago,” said Drew Kanaly in a statement.
Drew and Jeff’s father, the late E. Deane Kanaly, founded the trust. Their brother Steven died on Jan. 11, 2011, at the age of 57. The eldest son, Steven was a past chairman of the board of the National Association of Personal Financial Advisors and a four-time member of Worth magazine’s America’s Best Financial Advisors List.
“We look forward to working with the team at Kanaly Trust, a premier trust company that is deeply committed to its clients,” Rankin said in a statement. “The acquisition of Kanaly Trust resulted from an extended search undertaken by our firm to identify a leading platform investment within the trust and wealth management space.”