Miracle Mile Advisors, a $2 billion Los Angeles-based registered investment adviser, has sold a minority ownership stake to Merchant Investment Management as part of a plan to fuel growth.
Founded in 2007, Miracle Mile has so far completed three acquisitions, including the addition of the $240 million Aequitas Wealth Management in June.
Since January 2016, Miracle Mile has experienced a 387% cumulative growth, or 31% compounded annual growth rate.
Duncan Rolph, Miracle Mile managing partner, declined to disclose details of the equity stake but said it was “a very minor stake, and we retain full management control.”
Rolph said the investment capital will be used to help fund acquisitions and to invest in the firm.
Unlike a more traditional private equity investor, Merchant is a family office that does not adhere to traditional investment time periods or exit strategies, which means Merchant could be a longer-term partner of the advisory firm.
"Miracle Mile has a crystal-clear vision of its future, and we see eye-to-eye on what is needed to grow into that vision," said Matt Brinker, managing partner at Merchant. "Because of our alignment with leadership, the broader opportunity, along with what the team has built to date, we have made a long-term investment in Miracle Mile's future as an independent RIA."
Kevin Barlow, a managing director who joined Miracle Mile in 2019 as part of an earlier acquisition, said the growth plan involves expanding the more than 30 staff members operating out of multiple offices in southern California.
“Miracle Mile remains committed to a dual-track growth plan, combining acquisitions with organic growth efforts,” he said. "The partnership with Merchant will give our team more fuel for growth and is an endorsement of what we are doing as a team.”
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