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Carson Group Valued at $1B With New Bain Capital Investment

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What You Need to Know

  • Bain will provide additional capital to support technology, acquisitions and growth.
  • In conjunction with the transaction, Long Ridge Equity Partners is giving up its minority investment in the Ron Carson-led business.
  • Carson Group includes an RIA with some $17 billion in assets, as well as an advisor network with 110 partner offices.

Carson Group says it has received a strategic investment from Bain Capital, which values its business at roughly $1 billion. Bain also has promised Carson that it will provide additional capital to help the firm invest in “growth, technology development, and expansion by acquisition.”

Carson Group CEO Ron Carson will remain the majority owner of the firm and maintain his role as leader. (The firm, based in Omaha, Nebraska, includes three businesses, which are Carson Wealth, Carson Coaching and Carson Partners.)

It operations include an RIA with some $17 billion in assets, as well as an advisor network with 110 partner offices, including 30 Carson Wealth locations.

“Our extensive search for a strategic partner over the last few months gave us an incredible opportunity to explore the value an investor could bring to our mission to be the most trusted for financial advice,” said Carson in a statement.

Bain “is the ideal fit for us — culturally and strategically,” he added. “We wanted an investing partner who brings deep operational knowledge and resources to help further our efforts and ensure we continue to deliver a compelling value proposition to our advisors and their clients. I can’t think of anything more exciting than finding a partner like Bain Capital who shares our enthusiasm and drive for building a 100-year company.”

In late April, when Carson Group first disclosed its plans to find a new investor, its CEO told ThinkAdvisor that the firm didn’t “want to end up being sold to Goldman Sachs,” alluding to RIA United Capital’s sale to the investment bank in 2019 for $750 million. (The acquired entity was renamed Goldman Sachs Personal Financial Management in early 2020.)

See: Carson Group Seeking New Minority Stake Partner

In conjunction with the transaction, Bain acquired Long Ridge Equity Partners’ minority investment in Carson Group, which it made in 2016. Bain has also invested in financial and fintech entities such as SigFig, Acorns, AvidXchange, Esure Group, SquareTrade and Worldpay.

“The Carson Group family of companies are well-respected for their growth focus, coaching playbook, and differentiated technology platform, and they continue to thrive because of the company’s vision and unrelenting dedication to helping advisors become true fiduciaries,” according to Jeff Robinson, a managing director at Bain.

The privately owned multi-asset alternative investment firm has some $130 billion in assets under management across a variety of industries.

“We are excited to be a strategic partner with Ron and the team to drive the next-gen experience for advisors with investments in technology, operations, sales, and acquisitions so, in turn, they can provide an unparalleled experience to their clients,” added Cristian Jitianu, a Bain principal.

Pictured: Carson Group CEO Ron Carson.