Sequoia Financial sells another minority stake to private equity investors

Sequoia Financial Group, a $10 billion advisory firm based in Akron, Ohio, is selling another minority ownership stake to private equity investors.

Valeas Capital Partners is expected to make a $200 million investment in Sequoia later this month, the company announced Wednesday morning.

The private equity deal follows the firm's 2020 partnership with Kudu Investment Management. According to a company representative Richard Chimberg, even after both minority ownership sales, Sequoia continues as a majority employee-owned firm. All existing shareholders will proportionally reduce their interest in Sequoia to make room for the new capital partner, which strengthens and expands the firm's capital options, Chimberg said.

“We are delighted to welcome Valeas as a long-term strategic capital partner,” Tom Haught, Sequoia’s founder and chief executive, said in a statement.

“The Valeas investment is further validation of Sequoia’s talented team, significant growth potential, and strategic vision,” Haught added. “It is part of our DNA to invest in our business and team ahead of the curve to achieve superior outcomes for our clients. Valeas, Kudu and our employee-owner base provide a robust capital structure for the future.”

To date, Sequoia Financial has completed eight acquisitions, including deals for NCA Financial Partners in December 2021 and Wealthstone Advisors in April 2021. At the time of the acquisitions, NCA and Wealthstone managed $1.7 billion and $1.4 billion, respectively.

San Francisco-based Valeas is expected to “accelerate the existing expansion strategy pursued by Sequoia over the past several years,” according to the announcement.

“Sequoia will be Valeas’ cornerstone U.S. wealth management investment. Members of the Valeas team have successfully invested in several industries, including the financial services sector,” the statement said.

Rob Little and Ed Woiteshek, the co-founders of Valeas, will serve on the Sequoia board of directors once the transaction closes. They launched Valeas in 2021 and previously worked together at Hellman & Friedman. Sequoia will be the firm’s third portfolio company and its first in the financial services sector.