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.
Shorter waits for failed SIE and Series 7 candidates take effect Jan. 19, speeding the path to registration
Raymond James and Cetera also welcomed advisors from UBS and LPL as competition for experienced teams stays fierce
Jim Walesa worked in the securities industry for 39 years before leaving in 2021.
As the market turned from pricing in cuts to betting on hikes this year, the developing reality of a K-shaped economy has had real implications for households and investors alike.
Alleged cash payments, stolen client data, and a court that jumped the gun
Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.
As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor
