Two West Coast advisory firms are joining forces to create a $4 billion registered investment adviser.
Los Angeles-based Miracle Mile Advisors is kicking off the second stage of a growth strategy by acquiring San Francisco-based Karp Capital Management, a $1.2 billion RIA founded in 2004.
The deal, which is scheduled to close in November, also represents a transition in private equity ownership for Miracle Mile.
In conjunction with the Karp announcement, Miracle Mile announced a “significant investment” from private equity firm Corsair Capital, which is acquiring the ownership stake from Merchant Investment Management.
Merchant, which acquired its stake in Miracle Mile in December 2020, supported four acquisitions. The Karp deal is occurring under the financial backing of Corsair, according to Miracle Mile managing partner Duncan Rolph.
“As part of the transaction, Merchant is exiting and we’re bringing on Corsair,” he said. “Corsair is growth equity; they have a good track record, and they’ve been around a long time. From a holistic perspective, Corsair makes a lot of sense to us.”
With the Karp acquisition, Miracle Mile will have two California offices, as well as offices in Oregon, New York and Chicago.
Describing the RIA’s growth strategy, Rolph said, “People trump geography.”
“We’re really focused on continuing to add to high-quality talent,” he said. “We have clients in almost every state, and post-Covid, the physical locations become less important as you think through how you service clients.”
Corsair expects to leverage its fintech and wealth management expertise to support Miracle Mile, which was launched in 2007.
“We have been looking at the wealth advisory space for several years, trying to find the right platform company, and we found it in Miracle Mile,” Corsair partner Gunnar Overstrom said in a statement.
“Their unwavering commitment to clients, incredible management team, market-leading growth and award-winning culture makes the newly combined firm a perfect fit,” he said.
David DeVoe, founder and chief executive of DeVoe & Co., said the Karp deal marks the 191st RIA transaction of 2022 and reflects the continued strength of consolidation among RIAs.
“A growing number of RIAs are feeling pressure to gain scale, as they see the emergence of meta-RIAs, with tens or even hundreds of billion in AUM,” he said. “In some cases, they are deciding that a merger with similar-sized partner will enable them to fortify their position in their marketplace, compete more effectively and grow more efficiently.”
Advisors can set their practice apart and win more business with a powerful graphic describing their unique business and value proposition.
The Labor Department's reversal from its 2022 guidance has drawn approval from crypto advocates – but fiduciaries must still mind their obligations.
With $750 million in assets and plans to hire a RIA Growth Lead, Autopilot is moving beyond retail to court advisors with separately managed accounts and integrations with RIA custodians such as Schwab and Fidelity.
Elsewhere on the East Coast, a Boca Raton-headquartered shop has acquired a fellow Florida-based RIA in "a natural evolution for both organizations."
After advising on nearly $700 million in retirement assets, 27-year veteran Greg Mykytyn is bringing his expertise in ESOP and 401(k) plans to the national RIA in Texas.
How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave
From direct lending to asset-based finance to commercial real estate debt.
