Emigrant Partners takes minority stake in Novare Capital Management

Emigrant Partners, a strategic capital provider focused on minority investments in the wealth and asset management industry, has taken a strategic stake in Novare Capital Management, an independent wealth management firm with $1.8 billion in assets under management.

The partnership announced Thursday aims to accelerate the Charlotte, North Carolina-based firm's growth and enhance its ability to execute on long-term goals while maintaining its independence.

"We are thrilled to welcome Novare to the Emigrant Partners network,” Jenny Souza, chief executive officer and president of Emigrant Partners, said in a statement Thursday. “From our very first meeting, we were impressed with their depth of expertise, their growth in a vibrant wealth management market, and importantly, their highly strategic approach to managing intergenerational family wealth.”

Established in 1999 by co-founders Don Olmstead and Bill Baynard, Novare serves over 500 families across the US, offering a suite of services including investment management, tax planning, retirement and estate planning, and next-generation wealth strategies. Recently recognized as one of the country's top 100 RIAs, the firm has established itself as a key player in the Southeast wealth market.

The partnership with Emigrant will allow Novare to explore growth opportunities in the Southeast region while investing in leadership development and new talent. Emigrant’s investment approach emphasizes supporting firms’ independence, enabling them to retain control over strategy, investments, and day-to-day operations.

“This partnership gives us the opportunity to maintain our independence and build the ‘forever firm’ Don and I have always envisioned – while also making strategic investments in our business to remain competitive in an evolving industry,” commented Bill Baynard, managing director of Novare.

“This is a very important moment for Novare and our team, and it presents incredible opportunities that will add immediate benefits to our clients and employees," echoed Don Olmstead, who's also a managing director of Novare. "It will allow us to make deeper investments in our team, services, and resources to deliver the best possible experience and results for our clients.”

From her perspective, Souza still sees plenty of M&A activity with a continuing need for RIAs to access capital.

“The demographics in our industry naturally suggest that M&A will continue at pace to help support a certain level of succession and exit planning. But we see some of the most interesting activity among larger firms that are looking to access strategic capital," she said in an emailed statement to InvestmentNews. 

Strategic capital, Souza emphasized, involves "finding an experienced partner who can support independence and accelerate growth, and importantly, invest over a long horizon to achieve better alignment with clients, employees and shareholders than short-duration capital."

Over the years, Emigrant Partners has built up a partnership network of 20 firms managing a combined $113 billion in AUM and AUA. That includes its minority stakes in Stratos Wealth Partners, Verdence Capital, and Ulrich Investment Consultants. In 2024, it made follow-on investments in two existing partner firms, Dakota and FL Putnam.