Betting Big On Minority Stakes Investments
Authored by: Chris Latham
Contributors: Stan Gregor Of Summit Financial Holdings; Jeff Nash Of Bridgemark Strategies, Louis Diamond Of Diamond Consultants And David Reynolds Of Berkshire Global Advisors
Pursuing minority stakes investments has become a frequent strategy in the independent wealth management M&A space for growth-oriented buyers and sellers.
This year, such deals began to pick up steam in February, when Rise Growth Partners announced a minority stake in $5.7 billion Grimes & Company. In May, Raymond James announced that it would offer advisors growth financing in return for minority stakes in their businesses. Constellation Wealth Capital (CWC) announced minority investments in $8 billion Procyon Partners in April, and in $20 billion Merit Financial Advisors in July. In June, $12 billion Concurrent Investment Advisors launched its own minority investment venture for RIAs.
According to Fidelity’s wealth management M&A transaction reports, 13 minority-stake investments were tallied in the first quarter of 2025, and seven minority investment deals were announced in July alone. According to Echelon’s RIA M&A Deal Report, between Q1 and Q2 2025, the average assets per minority investment deal increased from $2.5 billion to $9.2 billion, with private equity playing a significant role in the first half of the year.
