Merit Financial Advisors has announced a new 30% strategic minority investment from Constellation Wealth Capital, an alternative asset management platform focused on supporting the long-term growth of independent wealth management firms.
The investment comes at an important time for Merit, according to the announcement, helping the firm to scale its advisor platform and expand its national reach amid rising demand for wealth management solutions.
"From the time we met with them, we knew CWC was the right partner to help take Merit into its next phase of growth,” Merit CEO Rick Kent said in a statement. “Their deep experience in the wealth management space, alignment with our culture, and long-term mindset made this an ideal match.”
Kent said the investment structure “preserves our independence and leadership continuity,” noting that the capital will be deployed to help Merit continue its strategic expansion through both M&A and organic growth. Other goals are to support investment in next-gen advisor technology and to bolster advisor recruitment and client experience initiatives.
Constellation Wealth Capital has previously backed other wealth management firms, including a $150 million minority investment in Cresset announced last year.
Karl Heckenberg, president and managing partner of Constellation Wealth Capital, cited Merit’s “unique ability to scale while maintaining strong cultural cohesion” as key drivers of the investment, alongside its ability to deliver “exceptional service to clients and attract top advisor talent.”
As part of the new investment, Wealth Partners Capital Group, which has held a minority investment in Merit since 2019 alongside a group of strategic investors led by HGGC's Aspire Holdings platform, will be exiting its ownership stake.
At the time of the transaction, the Atlanta-based Merit oversaw $19.94 billion in assets under advisement, including $14.06 billion in advisory, $2.6 billion in brokerage assets, and $3.28 billion in retirement plan and employee stock ownership plan assets.
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