Creative Planning acquires $2 billion California RIA

The firm's purchase of Reilly Financial Advisors is another in a string of recent deals.

Creative Planning Inc. continued its buying spree Monday, announcing the purchase of Reilly Financial Advisors, a registered investment advisory firm in La Mesa, California, with $2 billion in assets under management.

With its latest acquisition, Creative Planning has more than $100 billion in AUM and operates in 50 states and 65 countries, according to the announcement.

The firm bought a $300 million Ohio RIA earlier this month and an $800 million AUM Illinois advisory firm in late November. In early November, Creative Planning bought Lockton Retirement Services’ 401(k) business.

The latest acquisition adds to the momentum in RIA M&A activity that is expected to continue this year after eight straight years of record-breaking consolidation.

Creative Planning, which is based in Overland Park, Kansas, has announced 15 acquisitions since 2019, said David DeVoe, managing director of research firm DeVoe & Co. Most of them have been between $300 million and $700 million, although some, like Reilly, have been bigger.

“Creative Planning is one of two dozen meta-RIAs that are shaping the RIA industry,” DeVoe wrote in an email through an aide. “They have developed a methodical process to grow the firms they acquire. They have built up scale through the power of their platform, resources and technology.”

Creative Planning Chief Executive Peter Mallouk declined to release the terms of the deal. He said Reilly Financial Advisors complements his firm.

“They have a healthy private wealth business, which is our core offering,” Mallouk said via email through a spokesperson. “They have a 401(k) offering that will easily merge into our offering, where their clients will immediately benefit from our pricing power. They have a U.S. expat business, advising U.S. citizens that live overseas, and that fits well with our same offering.”

In the announcement about the acquisition, Mallouk added: “Reilly’s strong company values, philanthropic efforts, and commitment to their clients were three of the main reasons why we at Creative Planning were drawn to them as business partners.”

Reilly Financial Advisors President Frank Reilly said in the announcement: “Simply put, I wanted someone who would prioritize the same level of care for both our clients and employees as the Reilly family has for the last 22 years.”