Carlyle takes stake in Captrust

investmentnews.com:

Carlyle Group is providing a cash infusion to acquisition-hungry Captrust Financial Advisors, the latest sign that private equity is still very much interested in registered investment advisors and that deals in the space may still be ramping up.

Funds managed by Carlyle are making “a minority growth investment” in the firm, Captrust announced Tuesday. It marks the second such PE stake in the firm, following GTCR’s taking a 25% stake in Captrust in 2020, a deal that provided the RIA with a war chest for acquisitions. Since then, Captrust has bought up 29 firms and boosted its valuation from $1.25 billion to $3.7 billion, according to the firm. Currently, it oversees more than $832 billion.

“Captrust is one of the premier brands within the RIA industry, with a deep bench of expertise and resources that support a premium and ever-expanding service model,” Jim Burr, head of global financial services at Carlyle, said in the announcement. “The firm has the unique position of leveraging its size and scale to benefit not only clients, but also to benefit the communities it serves. This differentiated position, coupled with Captrust’s vibrant culture and strong leadership, makes us incredibly excited to collaborate with our new partners.”

Captrust co-founder Fielding Miller remains as CEO and is the largest individual shareholder, the company stated.

“GTCR made its investment three years ago, and there has been a three-time increase in value,” said Dick Darian, founding partner at Wise Rhino Group. “If you look at Carlyle, for my money, they’d have to believe in investing in the business and providing the growth capital — they have to believe in the bridge, which is putting the retirement business and the wealth business