Carson Group valued at $1 billion in latest deal

Carson Group valued at $1 billion in latest deal
Bain Capital took a minority stake in Carson, one of the largest registered investment advisers in the country with more than $17 billion in assets.
JUL 14, 2021

As expected for several weeks, the Carson Group on Wednesday said it had taken a new minority investment partner, with the business being valued over $1 billion, according to a statement from the company.

The latest valuation of the company comes at a time when private equity funds are heavily investing in registered investment advisers, like the Carson Group, with some wondering how high valuations on such businesses can go.

The firm has more than $17 billion in assets and its new investor is Bain Capital.

Launched by Ron Carson in 1983, the company has evolved from a leading branch office at LPL Financial to one of the largest RIAs in the country, with more than 300 financial advisers operating in 36 states and servicing more than 36,000 households, according to its website.

Ron Carson, who did not return calls to comment, remains the firm's majority shareholder and CEO.

In conjunction with the transaction, Bain Capital purchased the equity interests from Long Ridge Equity Partners, which led a minority investment in the company in 2016, according to the company statement.

At that time, Long Ridge Equity Partners bought a 29% equity stake in the Carson Group for $35 million, which translated into a total firm valuation of $120 million, or roughly eight times less than the firm’s current valuation. Carson Group in 2016 had about $6 billion in assets, or close to one-third the amount now.

Bain's investment, along with a commitment to provide additional growth capital, will help the company support growth, technology development, and expansion by acquisition, Carson Group said in a statement.

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

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.