Miracle Mile sells minority stake to Merchant Investment Management

Miracle Mile sells minority stake to Merchant Investment Management
The infusion of capital from the family office is expected to fuel acquisitions
DEC 17, 2020

Miracle Mile Advisors, a $2 billion Los Angeles-based registered investment adviser, has sold a minority ownership stake to Merchant Investment Management as part of a plan to fuel growth.

Founded in 2007, Miracle Mile has so far completed three acquisitions, including the addition of the $240 million Aequitas Wealth Management in June.

Since January 2016, Miracle Mile has experienced a 387% cumulative growth, or 31% compounded annual growth rate.

Duncan Rolph, Miracle Mile managing partner, declined to disclose details of the equity stake but said it was “a very minor stake, and we retain full management control.”

Rolph said the investment capital will be used to help fund acquisitions and to invest in the firm.

Unlike a more traditional private equity investor, Merchant is a family office that does not adhere to traditional investment time periods or exit strategies, which means Merchant could be a longer-term partner of the advisory firm.

"Miracle Mile has a crystal-clear vision of its future, and we see eye-to-eye on what is needed to grow into that vision," said Matt Brinker, managing partner at Merchant. "Because of our alignment with leadership, the broader opportunity, along with what the team has built to date, we have made a long-term investment in Miracle Mile's future as an independent RIA." 

Kevin Barlow, a managing director who joined Miracle Mile in 2019 as part of an earlier acquisition, said the growth plan involves expanding the more than 30 staff members operating out of multiple offices in southern California.

“Miracle Mile remains committed to a dual-track growth plan, combining acquisitions with organic growth efforts,” he said. "The partnership with Merchant will give our team more fuel for growth and is an endorsement of what we are doing as a team.”

Latest News

RIAs need to visit universities to attract students
RIAs need to visit universities to attract students

RIAs need to find universities that offer financial planning programs and sponsor or host events, advisor suggests.

Orion deepens Capital Group alliance with ETF portfolio tie-up
Orion deepens Capital Group alliance with ETF portfolio tie-up

The leading wealth tech provider is helping more advisors access active ETF models through its exclusive partnership.

JPMorgan client who lost $50M amid dementia battle denied trial
JPMorgan client who lost $50M amid dementia battle denied trial

Case of once-wealthy family highlights risks, raises questions on firms' duties to sophisticated investors suffering cognitive decline.

Stifel loses huge $14.2 million arbitration claim linked to star Miami broker
Stifel loses huge $14.2 million arbitration claim linked to star Miami broker

“The evidence in this case was overwhelming,” says an attorney.

$9B Gateway Investment Advisers names Julie Schmuelling president
$9B Gateway Investment Advisers names Julie Schmuelling president

The move marks the culmination of a decade-long journey for the new leader at the Ohio-based RIA and Natixis affiliate firm.

SPONSORED Leading through innovation – with Tom Ruggie of Destiny Wealth Partners

Uncover the key initiatives behind Destiny Wealth Partners’ success and how it became one of the fastest growing fee-only RIAs.

SPONSORED Client engagement strategies, growth and retention in the down markets

Key insights from Gabriel Garcia on adapting to demographic shifts and enhancing client experience in a changing market