$20B Merit looks to next phase as Constellation takes minority stake

Merit Financial Advisors, a fast-growing hybrid RIA based in Atlanta with nearly $20 billion in assets under advisement, has secured a new minority investment from Constellation Wealth Capital, marking a shift in its ownership structure and fueling plans for national expansion.

The investment by Constellation, a private equity firm focused on backing independent wealth managers, replaces Merit’s previous minority investors – Wealth Partners Capital Group and HGGC’s Aspire Holdings – who are exiting the business after partnering with the firm since 2019.

Merit, which oversees $14.06 billion in advisory assets and operates 40 offices across the US, said the capital will be used to scale its advisor platform, pursue further acquisitions, and enhance client service and technology initiatives.

“This investment marks an exciting chapter in Merit’s journey,” Kay Lynn Mayhue, president of Merit Financial Advisors said in the Monday announcement revealing the deal. “CWC’s support will allow us to accelerate our strategic initiatives and further strengthen our capabilities for our advisors and their clients.”

CEO Rick Kent emphasized that the deal would not impact Merit's independence or leadership structure. “Their deep experience in the wealth management space, alignment with our culture, and long-term mindset made this an ideal match,” he said.

The transaction is expected to close in the third quarter of 2025. Merit will continue to operate under its current name, with no anticipated operational changes.

The move comes as Merit has significantly ramped up its acquisition strategy in 2025, completing eight transactions year-to-date. Mosty recently last month, it announced its acquisition of RCM Investments in American Fork, Utah. It then snapped up two niche advisory firms: Olympic Wealth Management in Bothell, Washington, and AMP Wealth Management in Whitefish Bay, Wisconsin. Combined, the three firms added approximately $850 million in assets and expanded Merit’s presence into new markets across the Pacific Northwest, Midwest, and Mountain West regions.

Constellation has established itself as a serial minotiry investor in large RIAs, including its partnerships with Bogart Wealth and Procyon Partners revealed earlier this year.

Echelon's 2024 RIA M&A deal report highlighted Constellation's slant toward scale, shown by its six minority deals in firms averaging over $16.9 billion in assets during the year.

Karl Heckenberg, president and managing partner at Constellation Wealth Capital, said the firm was attracted to Merit’s ability to scale while maintaining its organizational culture and client service model.

“Merit has demonstrated a unique ability to scale while maintaining strong cultural cohesion, delivering exceptional service to clients, and attracting top advisor talent,” he said.

Those qualities were on full display late last month at the 2025 InvestmentNews Awards, where Merit took the coveted title of RIA Firm of the Year.

Merit’s leadership said the partnership is designed to maintain its employee- and advisor-owned structure while equipping the firm to grow through both M&A and organic channels in a competitive market for scale and succession planning.