Carlyle, Bain in race to buy Wealth Enhancement for $7bn – report
Carlyle and Bain Capital are in contention to acquire Wealth Enhancement in a deal that could value the wealth management platform at about $7bn including debt, the Financial Times has reported.
Wealth Enhancement oversees nearly $160bn in client assets, according to the report. Its private equity owners, TA Associates and Onex, have put the business up for sale.
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The two firms are now the final bidders in the process after other contenders dropped out, people familiar with the matter told the FT.
The sale comes as private equity groups continue to pursue independent wealth management firms, which have seen strong deal activity in recent years.
Wealth Enhancement is a registered investment adviser, or RIA. These firms compete with banks by advising wealthy individuals and business owners on investments in exchange for fees.
The sector has attracted private equity interest because of its recurring revenues and relatively stable client relationships.
Under TA Associates and Onex, Wealth Enhancement has expanded through acquisitions. Since last year, it has bought at least six smaller RIAs as part of efforts to build scale.
The company is among the larger independent wealth managers backed by private equity and has been part of a wider consolidation trend across the industry.
Other notable deals in the sector include Mubadala Capital’s $8.8bn take-private acquisition of CI Financial last year and Clayton Dubilier & Rice’s $7bn buyout of Focus Financial Partners in 2023.
More recent investments include Advent International’s minority stake in Fisher Investments and TPG’s investment in Creative Planning.
According to the FT, TA and Onex hired Evercore in recent months to run the sale process for Wealth Enhancement.
The process is at an advanced stage, although there is no certainty it will result in a transaction.
The current owners could still decide to keep the business.
Carlyle and Bain declined the FT’s request to comment.
Wealth Enhancement, TA, Onex and Evercore did not respond to requests for comment.
