Private equity firm TPG made a “substantial minority” investment in Overland Park, Kansas-based RIA Creative Planning. San Francisco-based TPG, which specializes in alternative asset management, invested in Creative Planning through its TPG Capital division, according to a news release.
TPG joins existing Creative Planning investor General Atlantic, which made a minority investment in 2020.
Peter Mallouk, Creative Planning CEO and President, will continue to lead the RIA and hold a majority stake.
Creative Planning and its affiliates had over $375 billion in combined assets under management (AUM) and assets under advisement across all 50 states and 90 countries as of Dec. 31, according to the RIA.
“This new investment from TPG Capital is recognition of the unique value we create for our clients and the growth and expansion opportunities ahead for our business,” said Mallouk.
“We are excited to partner with a trusted investor like TPG, with a well-known global reputation, who shares our vision of leveraging our planning-led approach and people-first culture to better serve clients through every phase of their financial lives,” he added.
“As clients are increasingly seeking out holistic wealth management solutions, Peter Mallouk and Creative Planning have built an unparalleled business in the space with a track record of success by offering services that address clients’ unique needs,” according to Peter McGoohan, Partner at TPG Capital.
“We look forward to working closely with Peter and Creative’s impressive management team and advisors to invest behind the Company’s continued growth and expansion,” McGoohan added.
TPG has $229 billion of AUM, as well as investment and operational teams around the globe, according to the release.
“In our over four years of partnership together, Creative Planning has continued to build on its reputation as an industry-leading wealth management firm with deep client focus and a unique servicing offering,” said Paul Stamas, Managing Director and Global Head of Financial Services at General Atlantic.
Goldman Sachs acted as exclusive financial advisor to Creative Planning, while Paul Weiss provided legal counsel to the RIA.
J.P. Morgan Securities and RBC Capital Markets acted as financial advisors to TPG Capital, while Davis Polk served as legal counsel.
TPG’s Investment In Homrich Berg
The Creative Planning announcement follows shortly after Atlanta-based RIA Homrich Berg (HB) announced a “strategic minority investment” by TPG on Thursday through TPG Growth, TPG’s middle market and growth equity platform. Founded in 1989, HB has $18 billion in AUM.
The investment, expected to close by year end, will allow the RIA to “continue to expand its capabilities, attract top-tier talent, and further enhance its client services,” according to a press release.
TPG joins New Mountain Capital, which took a minority stake in HB in 2021. That investment “helped fuel HB’s growth and expansion of the client experience, while maintaining its commitment as a fiduciary advisor,” according to the RIA.
HB’s management team will remain the largest shareholder group and New Mountain will remain invested in the RIA.
Jeff Berman, Contributing Editor and Reporter at Wealth Solutions Report, can be reached at jberman@wealthsolutionsreport.com.
