Private equity backing of RIAs has been an ongoing trend, but a newly published report from AdvizorPro shows that PE investment has accelerated in the past year.
At the same time, the RIA market continues to consolidate at a rapid pace, with private equity investors driving much of the change through platform investments and add-on acquisitions.
The action includes both headline-grabbing deals like GTCR and Carlyle backing Captrust, as well as smaller investments that don’t generate as much attention — such as MN Wealth Advisors, a $330 million RIA, taking on support from Trinity Hunt Partners.
The overall effects of PE’s emergence in the RIA space are hard to overstate, according to the analysis. Firms of all sizes are gaining new resources to invest in client service capabilities and to support both organic and inorganic growth, but they are also facing new questions about how PE ownership structures can best align with their existing business strategies.
See the accompanying slideshow for six highlights from the AdvizorPro report.
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