Our industry is witnessing a multi-year increasing trend in the amount of M&A activity, in large part driven by private equity firms and other capital providers. Private equity-sponsored investments reached 144 transactions this year to date, positioning 2025 to surpass the previous annual record of 215 set last year, according to ECHELON Partners’ second quarter RIA M&A Deal Report.
Private equity firms bring much more to the table than just capital. They often provide the firms they acquire with practical strategic and financial support, including expertise in data analytics, operations and M&A opportunities.
By both the sheer volume of ownership of wealth management firms and the involvement they have in the operations, M&A activities and growth strategies of investees, these firms hold great influence in the wealth management industry.
For the second year, WSR honors the top capital providers of our industry in our invitation-only CAP 5: Top Private Equity And Capital Growth Partners, listed below in alphabetical order.
Constellation Wealth Capital
Constellation Wealth Capital (CWC) is an alternative asset management platform focused on making minority investments exclusively in the wealth management industry. Founded in 2023 by Karl Heckenberg, President and Managing Partner, CWC provides long-term capital and strategic advisory solutions to support the growth and independence of its partner firms.
CWC closed its inaugural fund in November 2024 with over $1 billion in capital commitments. To date, CWC has made 12 strategic investments representing over $220 billion in AUM. Its portfolio includes AlphaCore Wealth Advisory, a San Diego-based RIA that recently merged with a local RIA to form one of the region’s largest independent firms with $6.5 billion in AUM.
CWC also holds minority positions in CV Advisors, a $13 billion multi-family office in Florida, and Merit, an Atlanta-based firm that has completed eight acquisitions this year. The Merit Financial Advisors deal was announced in early July and is expected to close in the third quarter.
Beyond capital solutions, CWC provides experience across growth strategy, business management, technology and operations, tailored to each partner firm to them scale effectively.
“What stands out about Constellation Wealth Capital is their trust-first approach,” said Arthur Ambarik, CEO of Perigon Wealth Management, a CWC portfolio firm. “They back our leadership, share invaluable expertise, and offer extensive connectivity without trying to rewrite our playbook.”
Ambarik continued, “With the right balance of guidance and autonomy, we’ve been able to accelerate both organic and inorganic growth in a way that stays true to our culture. They’ve become much more than investors. They’re partners and friends who share our vision for a long, sustainable future.”
Lovell Minnick Partners
Lovell Minnick Partners (LMP) invests in growth-oriented, middle-market companies in financial services, financial technology and business services. Founded in 1999, LMP has raised over $5 billion of capital, invested in more than 50 companies and completed over 200 add-on acquisitions.
Wealth management is a key area of focus. LMP currently invests in Pathstone, W1M, Americana Partners and STP Investment Services. Past holdings include AssetMark, Mercer Advisors, First Allied, HD Vest and Foreside.
LMP strongly believes in building relationships with management teams to help position businesses for long-term, sustainable success. The company emphasizes its hands-on partnership-driven model, working closely and collaboratively with founders and leadership teams. To further support its portfolio companies, LMP established an Advisory Council and a team of Operating Partners consisting of seasoned industry experts to provide strategic guidance, operational insight, leadership coaching and technology-focused advice, all aimed at accelerating growth.
“Partnering with LMP has been a transformational step in our evolution as a company,” said Matthew Fleissig, CEO of Pathstone. “LMP brings an endless supply of ideas and best practices, and in addition, they work directly alongside us to execute. LMP understands our mission and has enhanced our ability to deliver meaningful outcomes for our clients.”
The firm has offices in New York, Philadelphia and Los Angeles.
Summit Partners
When Summit Partners launched in 1984, it focused on growth stage businesses, bridging the gap between venture capital and private equity. The firm seeks to structure investments so that it best supports the goals and growth of each portfolio company, typically investing between $10 and $500 million.
Summit primarily invests in three sectors: technology, healthcare and life sciences, and growth products and services. The last sector includes wealth management firms like FNZ, Cinerius Financial Partners, RWA Wealth Partners, Vestmark and Focus Financial Partners. Overall, Summit has invested over $32 billion in more than 550 companies, which has led to over 175 IPOs and more than 250 M&A transactions.
One of Summit’s key features is its Peak Performance Group (PPG), a team that provides free, on-demand support to its portfolio companies. PPG consists of experienced professionals with functional expertise in areas such as operations, human capital, M&A, capital markets and technology and data science.
The firm has offices in New York, Boston and Menlo Park, California, as well as London and Luxembourg.
TA Associates
Founded in 1968, TA Associates funds growth companies in five sectors: financial services, healthcare, technology, consumer and business services. The company has raised $65 billion for over 560 investments, resulting in 130 IPOs and over 970 acquisitions.
Among TA’s portfolio companies are wealth management firms like Caprock, Cliffwater and Wealth Enhancement Group. TA also invests in Orion Advisor Solutions. The firm has offices in Menlo Park, California; Austin, Texas; and Boston, as well as internationally in London, Hong Kong and Mumbai.
TA provides portfolio companies with various strategic and tactical resources. In addition to its investment team, the company offers a dedicated Strategic Resource Group, which focuses on ways to improve operational and financial performance, and a Capital Markets Group, which supports growth initiatives through debt funding and capital raises. TA also offers third-party Operating Advisors, experienced executives who advise the leaders of portfolio companies.
Warburg Pincus
Warburg Pincus has over $87 billion in assets under management (AUM). Headquartered in New York with 13 other global offices, the firm has been a private partnership since 1966 and has over 55 years of experience in growth investing across sectors including financial services.
The company has backed a number of prominent platforms across the wealth and asset management industries. In February, Warburg exited its majority stake in Kestra Holdings, a leading independent wealth management platform. Over Warburg’s hold period, Kestra’s AUM roughly tripled while the business also launched new divisions like Bluespring Wealth Partners and Kestra Investment Management.
Warburg was one of the earliest private equity firms to invest in wealth management with its 2011 investment in The Mutual Fund Store. Warburg has three current wealth management investments in the U.S. and U.K.: Edelman Financial Engines (RIA with $287 billion in AUM) since 2021, Facet (tech-enabled RIA serving over 14,000 clients) since 2017 and Evelyn Partners (U.K. wealth manager) since 2020.
“From the moment we engaged with Warburg Pincus there was a real sense of partnership and commitment to shared success,” said James Poer, CEO of Kestra Holdings. “Their team was engaged, creative and curious about our business. The resources from management consulting to technology to marketing were best in class. Partnering with Warburg applied a wealth of talent that was aligned in helping us achieve and accelerate our business plans.”
Janeesa Hollinghsead, Contributing Editor at Wealth Solutions Report, can be reached at editor@wealthsolutionsreport.com.
