Carlyle (CG) Joins GTCR As Strategic Investor In Captrust

September 19, 2023 7:04 AM EDT

CAPTRUST Financial Advisors (CAPTRUST) announced today a minority growth investment from funds managed by global investment firm Carlyle (NASDAQ: CG). Carlyle will provide growth capital to the firm which will be used to pursue strategic inorganic growth opportunities. Neither GTCR nor any of CAPTRUST's executive leadership teams will be selling secondary shares as part of the transaction.

CAPTRUST added its first institutional capital partner, leading private equity firm GTCR, in 2020 to support its strategic plans to further expand the business nationally, at a valuation of $1.25 billion. Since that time, CAPTRUST has grown through the addition of 29 firms that broadened the company's capabilities and geographic footprint and fueled the firm's organic growth.

CAPTRUST's valuation has increased to more than $3.7 billion, with its equity value increasing by more than $2 billion to more than $3 billion. Carlyle's new growth equity will be used to further drive this M&A strategy. Carlyle and GTCR will be minority investors in CAPTRUST, both individually and collectively.

"CAPTRUST was founded on the belief that everyone is best served by working with financial advisors that serve as fiduciaries, providing objective, conflict-free advice. Fast-forward more than 25 years, and that core belief remains the foundation of our tremendous growth," said Fielding Miller, Co-founder and CEO, CAPTRUST. "We remain focused on our clients first and have built out the infrastructure and advisor force to deliver world class solutions."

"CAPTRUST has established a well-defined position within the RIA industry thanks to the firm's scale across wealth management, retirement plans, and endowments and foundations," said Collin Roche, GTCR Co-CEO and Managing Director. "We believe in the future of this business and are pleased to maintain our full commitment as an investor and a strategic partner. We look forward to continuing to work with the management team to further build on CAPTRUST's growth."

"CAPTRUST is one of the premier brands within the RIA industry, with a deep bench of expertise and resources that support a premium and ever-expanding service model," said Jim Burr, Head of Global Financial Services at Carlyle. "The firm has the unique position of leveraging its size and scale to benefit not only clients, but also to benefit the communities it serves. This differentiated position, coupled with CAPTRUST's vibrant culture and strong leadership, makes us incredibly excited to collaborate with our new partners."

Mike Hollander, Managing Director at GTCR added: "CAPTRUST continues to expand its capabilities through a robust inorganic growth strategy combined with strong centralized capabilities, which has allowed the business to generate exceptional growth. We are excited to support Fielding and the team as they accelerate CAPTRUST's path forward."

Fielding Miller will continue to lead the firm and remains the largest individual shareholder. CAPTRUST also has one of the broadest employee ownership programs in the industry. Currently, more than half of CAPTRUST employees participate in one or more of the firm's equity programs.

"The culture at CAPTRUST is driven by unity, or as we say, One Unified Practice. Our shareholder program is one of the ways that we show our people just how important they are to the success of our organization," continued Miller.

Ardea Partners LP served as exclusive advisor to CAPTRUST. Alston & Bird LLP served as CAPTRUST's legal counsel. J.P. Morgan served as lead advisor to Carlyle. Simpson Thacher & Bartlett LLP served as Carlyle's legal counsel. Kirkland & Ellis LLP served as legal advisor to GTCR.

Additional terms of the deal were not disclosed.

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