The private equity firm GTCR has taken a minority stake in Captrust Financial Advisors, the firms said Tuesday.
As a result of the deal, Chicago-based GTCR will have a minority interest in about 25% of the wealth management firm, which is now valued at about $1.25 billion.
It also will hold two of nine Captrust board seats, while Captrust executives and employees will maintain the remaining seven board seats and their majority interest of 75%.
Raleigh, North Carolina-based Captrust says it began looking for a capital partner in mid-2019. The firm, which has about 240 financial advisors, has made about 40 deals since 2006 and was seeking further resources to expand its national operations.
“We see tremendous opportunities ahead, and to execute them successfully, we needed a strong capital partner,” said Captrust Chairman and CEO Fielding Miller, in a statement.
Some proceeds from GTCR’s investment will be given to shareholders, and the remainder will be used to fund acquisitions.