TA Associates is the latest private equity firm looking to sell part of its stake in a top-flight wealth manager.
TA is seeking to offload some of its stake in Wealth Enhancement Group, according to four people familiar with the situation. Raymond James advises on the process, which has not started.
We do not know how many AT requests. In 2019, Lightyear Capital sold its majority stake in Wealth Enhancement at TA. (Raymond James advised on the sale of Wealth Enhancement.) At the time, Wealth Enhancement had $ 11.8 billion in client assets. The wealth manager agreed in April to buy Pillar Pacific Capital Management, bringing his clients’ assets to $ 32 billion. Pillar Pacific was Wealth Enhancement’s 23rd acquisition since 2013.
TA should retain a significant portion of the improvement in wealth. The Boston-based private equity firm wants to “take some chips off the table but keep the edge,” said one of those familiar with the situation.
TA follows the trend of venture capital firms to liquidate some of their holdings in asset managers, but retaining the majority. For example, Hellman & Friedman agreed in March to sell part of its stake in Edelman Financial Engines to Warburg Pincus. Partners Thomas H. Lee also acquired a stake at Hightower in 2017.
In another deal, Carson Group, backed by Long Ridge Equity Partners, seeks to sell a minority stake. First-round bids were expected on Thursday, two people familiar with the situation said. It’s unclear how much Carson, which produces $ 40 million in earnings before interest, taxes, depreciation and amortization (Ebitda), is looking for. Moelis advises on the process, which is dominated by private equity firms, the people said.
Founded in 1983, Carson Group provides coaching and partnership services to consulting firms. It manages $ 16 billion in assets.
Long Ridge is a private equity firm that invests in financial and business technology. The New York firm invested $ 35 million to Carson in 2016, according to a statement.
TA, Wealth Enhancement, Raymond James, Long Ridge, Carson, Moelis did not immediately return messages for comment.
CityWire news reported earlier of wealth enhancement selling.
Write to [email protected]