PE giant TPG takes strategic stake in Creative Planning

TPG Capital, a global alternative asset management firm, has revealed it's making a strategic minority investment in Creative Planning, the top-ranked RIA headed by industry veteran Peter Mallouk.

Creative Planning, known for its comprehensive, financial planning-led services, offers retirement planning, estate planning, trust services, tax strategies, and family office support to a diverse clientele. The firm manages over $375 billion in combined assets across all 50 states and 90 countries. Mallouk, Creative Planning’s president and CEO, will maintain his leadership role and majority ownership despite the investment.

While the terms of the deal revealed Monday were not disclosed, sources with knowledge of the matter previously told Reuters TPG was pursuing a $2 billion stake, with the deal reportedly valuing Creative Planning at more than $15 billion.

This latest investment, made through TPG's US. and European private equity platform, TPG Capital, comes hot on the heels of its deal to get a small chunk of Homrich Berg, another well-reputed RIA.

“This new investment from TPG Capital is recognition of the unique value we create for our clients and the growth and expansion opportunities ahead for our business,” Mallouk said in a statement.

In an August interview, Mallouk told InvestmentNews of the firm's ambitious near-term plans, including "one hundred job openings for CPAs, wealth managers, financial planners, across the board."

“We are excited to partner with a trusted investor like TPG, with a well-known global reputation, who shares our vision of leveraging our planning-led approach and people-first culture to better serve clients through every phase of their financial lives,” Mallouk said of his firm's latest deal.

TPG Capital's investment puts it shoulder-to-shoulder with General Atlantic, which made a minority investment in Creative Planning in 2020.

“As clients are increasingly seeking out holistic wealth management solutions, Peter Mallouk and Creative Planning have built an unparalleled business in the space,” said Peter McGoohan, partner at TPG Capital. “We look forward to working closely with Peter and Creative’s impressive management team.”

General Atlantic’s Paul Stamas echoed these sentiments, praising Creative Planning for its continued focus on client success: “We are thrilled to continue to support Peter and the excellent team at Creative Planning as they execute their long-term vision for the Company.”