Chicago-based private equity firm GTCR has picked a 25% interest in North Carolina-based investment advisory firm Captrust Financial Advisors.
The deal values Captrust at $1.25bn. Financial terms of the transaction were not divulged.
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As part of the deal, GTCR will gain two of the nine seats on the Captrust board.
The private equity firm will have a minimum seven-year investment horizon.
Captrust’s leadership and staff will retain the majority stake in the company.
Its co-founder, chairman, and CEO Fielding Miller will remain the largest shareholder of the business and retain its leadership.
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By GlobalDataGTCR managing director Collin Roche said: “We see great potential in the independent RIA space and believe that CAPTRUST is uniquely positioned to continue its extraordinary growth trajectory through the current market conditions and beyond.
“They have a history of being aggressive when markets are uncertain, so this is an ideal time to partner with Fielding and his deep bench of talented professionals.”
Captrust’s search for a capital partner commenced in the middle of last year.
The firm will utilise the latest infusion to offer partial liquidity to shareholders. It will also use a part of the capital to support acquisitions.
Captrust has over $390bn in assets under advisement, 43 offices, and a workforce of more than 700.
It was in the news earlier this year for its takeover of Fountain Financial Associates, a financial planning and investment management business with $654m in assets.
