MAI Capital Management announced Tuesday that it signed an agreement for funds managed by investment firm Carlyle to acquire a majority stake in the Cleveland-based RIA at a valuation of over $2.8 billion. The transaction is expected to close in the second quarter of this year.
Carlyle first invested in MAI in 2021 through its investment in Galway Holdings, which acquired MAI that year. As majority owner, Carlyle said it will provide MAI with the resources for investments in services, capabilities, human resources and client experience.
After the closing, Carlyle will be the majority owner, while Galway, Oak Hill Capital and funds managed by Harvest Partners will exit their investments.
MAI employees will continue to hold a ‘large’ minority equity ownership stake in the RIA, it said.
MAI said it will continue operating autonomously, with the same leadership team and strategic priorities. Clients can continue working with the same advisors and service teams, and current agreements can remain in place, according to the firm.
Galway Holdings and its insurance subsidiaries will continue to provide insurance services to MAI’s clients.
Rick Buoncore, CEO and Chairman of MAI, said, “As we looked for a long-term partner to help us achieve that vision, Carlyle stood out for its alignment with our culture and values along with their deep industry knowledge and expertise.”
He added, “Deepening our partnership with Carlyle will unlock the next chapter for MAI, enabling us to expand our resources while maintaining the firm’s commitment to being a preeminent destination for clients and the fiduciary-minded advisors who serve them.”
“We’ve been partners with MAI since 2021 and have seen firsthand the strength of its platform, leadership team, and highly customized client-centric approach,” Jim Burr, Co-Head of Global Financial Services at Carlyle, and Jitij Dwivedi, Partner at Carlyle, said in a joint statement.
“We believe in the multi-decade-long industry tailwinds supporting scaled advisor-led platforms with integrated business models and holistic wealth management capabilities,” they said.
They added, “MAI is well positioned to capitalize on these trends, and we look forward to working closely with Rick and MAI’s entire management team in its next phase of growth while preserving the company's unique culture.”
Ardea Partners was MAI’s exclusive financial advisor, and Houlihan Lokey was Carlyle’s financial advisor. Kirkland & Ellis served as legal counsel for Harvest Partners and MAI. Simpson Thacher & Bartlett was Carlyle’s legal counsel.
As of Jan. 1, MAI and its affiliate, Evoke Advisors, had 40 offices and a team of over 700. MAI had $50.9 billion in assets under management (AUM) and $5.6 billion in assets under advisement. Evoke had $16.1 billion in AUM.
MAI announced in August that it was acquiring Los Angeles-based Evoke.
Jeff Berman, Contributing Editor and Reporter at Wealth Solutions Report, can be reached at jeff.berman@wealthsolutionsreport.com.
