By Andrew Welsch
Homrich Berg, a fast-expanding wealth management firm, said it has sold a minority stake to private-equity firm TPG.
The investment will help Homrich Berg expand its capabilities, the company said. Homrich Berg, which has about $18 billion in assets under management, didn't disclose terms of the transaction.
The deal valued Homrich Berg at approximately $1 billion, according to Reuters, which cited people familiar with the matter. A Homrich Berg representative declined to comment.
Homrich Berg's management team will remain the largest shareholder group, according to the firm. Private-equity firm New Mountain Capital, which bought a stake in Homrich Berg in 2021, will remain invested in the company.
"Partnering with minority investors who hold a shared vision for the future of the firm enables us to continue delivering outstanding service and advice within our independent, fee-only fiduciary model," Homrich Berg CEO Thomas Carroll said in a statement. "It also allows HB to remain the largest shareholder group, with our management team retaining operational control, ensuring that our mission of being a trusted financial guide for our clients remains intact."
Caroll joined Homrich Berg as president in 2020 and assumed the CEO role at the start of this year, replacing Andy Berg, the firm's co-founder and current chairman.
Jenny Tu, Principal at TPG Growth, a unit of TPG, said her firm was attracted to Homrich Berg because of its strong organic and inorganic growth.
Founded in 1989, Homrich Berg has expanded beyond its Atlanta base in recent years. For example, it opened its first office outside Georgia in 2021, adding a new branch in Palm Beach, Fla. The firm also added offices in Nashville and Columbia, S.C.
In 2022, Homrich Berg acquired Oakbridge Partners, a registered investment advisor that had $1.5 billion in client assets at the time. Oakbridge was based in the Atlanta suburbs.
Recently, Homrich Berg has added new talent. Earlier this month, the firm said it recruited former Randstad executive Joanna Irwin as chief marketing officer. In April, it said it hired Andrew Page as head of corporate development; he previously worked at institutional asset manager Ancora and Focus Financial Partners, a wealth management company known for its acquisitions.
Homrich Berg is ranked No. 27 among Barron's Top 100 RIA Firms for 2024.
Write to Andrew Welsch at andrew.welsch@barrons.com
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(END) Dow Jones Newswires
September 27, 2024 12:01 ET (16:01 GMT)
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