Southwestern Investment Group is latest RIA to partner with private equity

Southwestern Investment Group is latest RIA to partner with private equity
The Tennessee-based firm has sold a minority stake to Merchant Investment Management, citing the need to build scale in the fast-consolidating wealth management industry.
JAN 25, 2022

Southwestern Investment Group, a $5.8 billion registered investment adviser based in Franklin, Tennessee, has taken the plunge into a private equity partnership by selling a minority stake to Merchant Investment Management.

Like virtually all RIAs succumbing to the lure of PE capital, SWIG Chief Executive Jeff Dobyns said the move was about building scale in a fast-consolidating wealth management industry.

“In our search for growth partners, Merchant stood out with its deep, practical understanding of capital structure and a team of experts that truly understands how financial advisers serve their clients and thrive as businesses,” Dobyns said in a statement.

“Merchant’s flexibility in approach to equity and debt capital and willingness to go the distance with us has been one-of-a-kind,” Dobyns said.

Private equity investors have been flooding into the wealth management space with increasing momentum over the past several years, and Merchant has emerged as one of the higher-profile PE players ever since Matt Brinker joined as a managing partner a year ago.

“We jumped into this partnership with Jeff and the team because they are building an advisory firm that can sustain for decades to come,” Brinker said in the statement.

“Their approach to partnering young talent with experienced advisers, paired with firm ownership, allows SWIG to deliver high-quality financial planning and investment management services,” he added. “Everything we do at Merchant will be to preserve what makes SWIG great and help them lean even further into their strengths.”

Student loan debt is fastest-growing type of non-mortgage debt

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.