EP Wealth Advisors says Ares Management Private Equity is acquiring “a significant minority stake" in the Torrance, California-based RIA — joining Berkshire Partners, its current minority equity investor. The investment from Ares, according to EP Wealth, will support its work in hiring, technology, client-facing offerings and services and M&A partnerships.
The investment should be completed in October, and its financial terms were not disclosed.
“We are thrilled to have found a partner in Ares who fully supports our mission and will fortify our efforts to grow while sustaining the governance, passion, and culture on which EP Wealth is built,” said EP Wealth's CEO, Ryan Parker.
EP Wealth was founded 26 years ago by Derek Holman and Brian Parker, who plan to maintain their ownership stakes in the RIA and current roles as active advisors and leaders. The firm, which has formed eight M&A partnerships this year, had assets under management of close to $40 billion, as of Aug. 31.
In late July, EP Wealth said it had formed a strategic partnership with Chicago-based Rappaport Reiches Capital Management, a wealth management firm launched in 2005 by Shari Greco Reiches and David Rappaport with over $1.2 billion in assets.
“EP Wealth has established itself as a leader in the RIA industry,” said Jordan Smith, an Ares partner. “We believe EP Wealth’s entrepreneurial culture and growth mindset, supported by the combined resources and experience of Ares and Berkshire Partners, will enable the company to build on its leadership position and compound long-term growth.”
The employee-owned RIA has more than 54 offices across 19 states. Its services include financial, tax and estate planning, as well as investment management.
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