Modern Wealth Management (“Modern Wealth”) has secured a $200 million hybrid debt-and-equity investment from funds managed by Centerbridge Partners (“Centerbridge”). The registered investment advisory (RIA) firm will use the capital to power its next phase of growth. Funds managed by Harvest Partners SCF also joined the investment.
The deal comes just three and a half years after the firm’s founding. Moreover, it builds on Modern Wealth’s longstanding partnership with Crestview Partners (“Crestview”). Crestview will remain the largest institutional investor alongside new investor Centerbridge. In addition, more than 150 employee shareholders currently hold a stake in the company.
“Modern Wealth has distinguished itself through the strength of its leadership team, the scale it has achieved and its disciplined approach to building an integrated national platform,” said Eric Hoffman, Senior Managing Director at Centerbridge Partners. “We believe the firm is exceptionally well positioned to capitalize on the significant growth opportunities across the independent wealth management industry. We look forward to supporting its continued expansion alongside Crestview.”
Modern Wealth launched in April 2023. Gary Roth, Mike Capelle, Jason Gordo and Jason Del Col lead the firm. Since then, the company has grown to almost $17 billion in assets under management. Strategic acquisitions and organic growth both drove that expansion. Notably, the firm has completed 26 acquisitions since its launch.
The new capital will speed up the company’s acquisition strategy. It will help the company grow its presence in key markets. The money will also be used to strengthen its integrated wealth management platform. Crestview led the firm’s first $200 million equity financing in 2023. So its continued role maintains continuity as the company moves into its next phase of expansion.
Separately, David Canter has joined Modern Wealth’s board of directors. Canter serves as CEO of Finley Point Strategy LLC. He is also the former president of Bluespring Wealth Partners. Earlier, he headed Fidelity Institutional’s RIA and family office businesses. Besides joining the board, Canter made a significant equity investment in Modern Wealth through ATON Associates. That investment firm focuses on minority investments in the wealth management ecosystem.
Leadership and Investors Share Their Views
Gordo, president and co-founder of Modern Wealth, commented on the milestone.
“When we founded Modern Wealth, we set out to build a different kind of wealth management firm, one where advisors have the resources, expertise and support to grow their businesses while delivering a more comprehensive experience for clients,” said Gordo, president and co-founder of Modern Wealth. “This investment gives us the capital to accelerate our growth while continuing to invest in the people and capabilities that make our model successful. Just as importantly, remaining majority employee-owned ensures the people building this business continue to have a meaningful stake in its future.”
Existing investors also voiced their support.
“Modern Wealth has achieved extraordinary growth in a remarkably short period of time, and we couldn’t be more proud of what Jason, Gary, Mike and the entire team have built,” said Dan Kilpatrick, Partner & Head of Financial Services at Crestview Partners. “From the outset, we believed in their vision to create a differentiated wealth management platform that puts advisors and clients first.”
For Centerbridge, the investment offers a chance to back one of the industry’s rapidly expanding independent wealth management platforms. The firm points to an established leadership team, a proven acquisition strategy and significant potential for continued growth.
Meanwhile, Modern Wealth’s strategy combines two elements. First, it acquires and integrates established advisory businesses. Second, it keeps investing in specialized financial planning, tax and estate planning capabilities, technology and centralized advisor support. As a result, affiliated advisors can spend more time serving clients and pursuing organic growth. Clients, in turn, gain access to a broader range of coordinated wealth management services.
Ardea Partners served as lead financial adviser to Modern Wealth on the transaction. Houlihan Lokey also served as a financial adviser. Citizens Bank also provided financial advice.
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News Source: Businesswire.com
