EP Wealth Advisors has issued a $400 million seven-year term loan and a $100 million five-year revolving credit facility to support its growth plans as the acquisitive California-based RIA simultaneously seeks a new equity capital raise.
“This financing reflects the strength and growth of EP Wealth,” EP Wealth CFO Christopher Toumajian said in a statement. “By lowering our borrowing costs and expanding our financial flexibility, we can reinvest more into our people, our clients, and strategic growth opportunities. Ultimately, this positions us to continue building long-term value while keeping our focus on delivering exceptional service to the families and individuals who trust us.”
The new debt financing is expected to help “pay down existing debt and finance future acquisitions,” according to S&P Global Ratings, which assigned a stable outlook and B- credit rating to EP Wealth. Moody’s similarly assigned a B2 rating to the firm and its proposed credit facility, also with a stable outlook. Both ratings agencies peg EP Wealth under the “speculative grade” on their scales.
EP Wealth Advisors reported over $36.4 billion in assets as of June 2025. Citywire reported in August that EP Wealth is pursuing a new capital raise expected to finalize alongside an exit from serial RIA investor Wealth Partners Capital Group, which has backed EP Wealth since 2017. EP’s other existing private equity sponsor, Berkshire Partners, is reportedly expected to retain its minority position in the RIA.
“We've always had minority, non-voting, non-controlling outside investors. And we think that the non-controlling part is really important,” EP Wealth CEO Ryan Parker told InvestmentNews in April. “We get access to the capital that we need to continue to grow in a healthy way, but we maintain control and are able to have a long-term view on what the business can grow into.”
The latest credit facility transaction from EP Wealth is expected to increase the RIA’s pro forma adjusted debt-to-EBITDA to 4.9x, up from 4.4x for the year ending June 30, 2025, according to Moody’s.
“We expect EPW to remain financial sponsor-owned, with equity investors retaining over 40% ownership in the company,” stated S&P Global. “We expect the equity infusion from the new investor to bring down leverage modestly, as EPW plans to use the funds for future acquisitions. We also don't expect sizable dividends to be paid in the next few years, as the company prioritizes reinvesting cash into growing the business.”
EP Wealth Advisors' seven acquisitions tied with Wealth Enhancement for the second-most acquisitions among all RIAs in the first half of this year, according to DeVoe & Company. Only Merit Financial Advisors (9) recorded more M&A transactions during that period.
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