The Diamond Podcast: Arax, RedBird’s PE Partnership
Private equity has become a powerful force in wealth management, but not every investor approaches the opportunity the same way. Haig Ariyan, CEO of Arax, and Mike Zabik, partner at RedBird Capital Partners, share how they built a firm from scratch rather than acquiring an existing platform, growing it to approximately $50B in assets and 230 financial advisors.
In this conversation with Jason Diamond, they explore what it means to be a partner rather than an acquirer, why advisor equity ownership can accelerate organic growth, and how a hybrid platform can deliver wirehouse-level capabilities with greater flexibility. They also address the questions surrounding private equity valuations, leverage, and exit timelines, along with the opportunities they see in wirehouse team liftouts, ultra-high-net-worth wealth management, and AI-driven advisor productivity.
The Storyline
There’s no shortage of private equity firms looking to invest in wealth management. And with valuations reaching historically high levels, the competition to acquire established RIAs and recruit successful financial advisors has become increasingly intense.
Yet the partnership between Arax and RedBird Capital Partners began with a different premise.
Rather than acquire an established wealth management platform and find someone to run it, RedBird set out to find an experienced operator with whom it could build a business from the ground up.
That search led Mike Zabik to Haig Ariyan, a veteran wealth management executive whose experience included leadership roles at Alex. Brown and Raymond James.
Together, they envisioned a business that would combine the resources, infrastructure, and capital of a large financial institution with the flexibility, ownership opportunities, and entrepreneurial culture of an independent firm.
The result was Arax, which has grown to approximately $50B in assets and 230 financial advisors.
Their guiding philosophy is to become a “partner of choice, not an acquirer of choice.”
But what does that actually mean for financial advisors?
For Haig, it means building a platform where advisors help shape the capabilities they use, maintain control over how they serve clients, and participate meaningfully in the equity value of the enterprise they’re helping to grow.
For Mike, it means investing in the right people, prioritizing organic growth alongside acquisitions, and resisting the pressure to make business decisions around a predetermined private equity exit timetable.
Their discussion with Jason goes well beyond the Arax growth story.
They examine the economics of private equity-backed wealth management, including why Mike believes certain businesses can justify EBITDA multiples exceeding 20 times, how leverage complicates the outlook for the largest consolidators, and what advisors should understand about the eventual return of investor capital.
They also explore why relatively few PE-backed firms have successfully recruited wirehouse teams directly, despite the significant opportunity, and why Haig considers transition execution just as important as recruiting.
Looking ahead, both see opportunities in increasingly complex client needs, the growth of ultra-high-net-worth wealth management, and AI technology that expands advisor capacity.
It’s a conversation about the relationship between capital and entrepreneurship, and how the right partnership can influence the business an advisor builds, the clients they serve, and the value they ultimately create.
Topics Covered
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How Arax and RedBird built a wealth management platform from scratch
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The difference between private equity investors and true operating partners
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Why Arax emphasizes advisor equity ownership and entrepreneurial culture
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How hybrid RIA and broker dealer capabilities support sophisticated advisors
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What wirehouse advisors gain, and what changes, when joining an independent platform
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The relationship between organic growth, M&A, and enterprise value
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How advisor equity can create additional incentives for growth
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Why integrated capabilities, technology, and organic growth influence valuations
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Private equity EBITDA multiples, leverage, and the potential for RIA IPOs
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RedBird’s philosophy on exit timing and long-term capital partnerships
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Why direct wirehouse team liftouts remain an underdeveloped opportunity
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How AI can improve client onboarding, reporting, prospecting, and advisor productivity
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The growing opportunity in ultra-high-net-worth wealth management
