As expected for several weeks, the Carson Group on Wednesday said it had taken a new minority investment partner, with the business being valued over $1 billion, according to a statement from the company.
The latest valuation of the company comes at a time when private equity funds are heavily investing in registered investment advisers, like the Carson Group, with some wondering how high valuations on such businesses can go.
The firm has more than $17 billion in assets and its new investor is Bain Capital.
Launched by Ron Carson in 1983, the company has evolved from a leading branch office at LPL Financial to one of the largest RIAs in the country, with more than 300 financial advisers operating in 36 states and servicing more than 36,000 households, according to its website.
Ron Carson, who did not return calls to comment, remains the firm's majority shareholder and CEO.
In conjunction with the transaction, Bain Capital purchased the equity interests from Long Ridge Equity Partners, which led a minority investment in the company in 2016, according to the company statement.
At that time, Long Ridge Equity Partners bought a 29% equity stake in the Carson Group for $35 million, which translated into a total firm valuation of $120 million, or roughly eight times less than the firm’s current valuation. Carson Group in 2016 had about $6 billion in assets, or close to one-third the amount now.
Bain's investment, along with a commitment to provide additional growth capital, will help the company support growth, technology development, and expansion by acquisition, Carson Group said in a statement.
The firm's CFO and EVP of Wealth Management Solutions are the latest executives to exit the broker-dealer.
Clients are saying they would consider switching advisors if another professional offered estate planning services, according to a new Trust & Will survey.
CEO Laurel Taylor says the fintech's composable AI stack helps workers optimize dollars across Trump Accounts, 529s, 401(k)s, and other employee benefits.
The bank has swiped three private banking veterans from BNY as the city climbs the ranks of America's fastest-growing wealth hubs.
Employee accounts, crypto trials and job cuts frame a pivotal year for the Swiss lender.
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.
