TA Associates, a worldwide personal fairness agency, stated Wednesday it was buying a majority stake within the $11.eight billion AUM Wealth Enhancement Group, an RIA consolidator, from Lightyear Capital LLC.
The deal demonstrates the eye that the RIA trade is getting from ever-larger buyers, and follows on the heels of Goldman Sach's acquisition of $24 billion AUM United Capital earlier this yr. Phrases of the TA Associates acquisition had been not disclosed.
Wealth Enhancement Group will proceed to be run independently, and can retain its management workforce, model and technique, each companies stated within the announcement.
“Our transaction with TA Associates is one other step within the strategy of nationwide progress. It continues to speed up progress for our agency, in partnership with a prime personal fairness agency that's completely aligned with our cultural values, strategic imaginative and prescient and need to accentuate our ongoing profitable growth throughout the nation,” stated Jeff Dekko, WEG's CEO, in an announcement offered to Wealthmanagement.com.
In an interview Monday, Dave DeVoe, founder and managing director of San Francisco-based consulting agency and funding financial institution DeVoe & Firm, stated that different PE-backed advisory companies would “possible profit from the success story” of the United Capital deal, and that valuations within the RIA house are at the moment "at an all time excessive".
Wealth Enhancement is a partly employee-owned RIA that has grown over the previous six years by way of a mix of natural progress and focused acquisitions, buying 13 "culturally-aligned" impartial advisory practices throughout that span and driving natural progress of $1 billion annually for the previous two years. The agency focuses on mass prosperous and prosperous retail and institutional buyers.
Mark F. Vassallo, managing companion of Lightyear, stated in an announcement Wednesday that for the reason that PE agency acquired Wealth Enhancement Group 4 years in the past, the latter “has invested considerably in its core working platform and made 10 geographically various acquisitions, growing property by 150%, bringing the corporate into six new markets and doubling the variety of workplaces and advisors.”
TA Associates is a worldwide personal fairness agency that owns stakes in progress firms throughout a number of industries, together with monetary companies.
It is a breaking information story. Please test again later for updates.
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