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.”
New report shows dimmed outlook for benefits to retirees and disabled Americans, creating further pressure for federal tax hikes or more borrowing.
Open letter to SEC Chair Paul Atkins questions whether the Ivy League university withheld material information prior to its $750 million taxable bond offering.
The Las Vegas-based hybrid RIA overseeing $8.8 billion in assets has named Andy Kalbaugh president to help scale its advisor platform.
The wealth tech giant – in collaboration with Fidelity, BlackRock, State Street, and Franklin Templeton – is offering its advisor and wealth firm users more ways to diversify.
Deal volume increased post-election but now caution has taken over.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave
