Executives at Homrich Berg, an Atlanta-based RIA integrator with $18 billion in assets, will sell a small portion of the firm to TPG Growth, TPG's middle-market and growth equity platform, a firm of San Francisco-based private equity company. confirmed.
The deal values the RIA at about $1 billion, according to a Reuters report.
Homrich Berg is currently backed by New Mountain Strategic Equity, a subsidiary of private equity firm New Mountain Capital, which made a small investment in 2021. Mali i Ri will maintain its investment, alongside TPG.
In June 2022, Homrich Berg completed a debt equity roundraising $75 million through a multi-bank syndicate led by First Citizens Bank. This arrangement allowed Homrich Berg to retain majority control of the firm.
last year, Homrich Berg CEO Andy Berg resigned from his position after growing the RIA integrator for nearly three and a half decades. President Thomas Carroll took over as CEO earlier this year, and the moves were part of a planned, multiyear transition that began when Carroll was hired in 2020.
“Partnering with small investors who share a shared vision for the future of the firm enables us to continue to provide excellent service and advice within our independent model, at only reliable fees,” Carroll said in a statement. “It also allows HB to remain the largest shareholder group, with our management team retaining operational control, ensuring our mission to be a trusted financial guide to our clients remains intact.”
The investment will go towards new capabilities, improved customer services and talent recruitment.
“Homrich Berg has seen strong organic and inorganic growth over the past several years as it has expanded in the Southeast,” Jenny Tu, director at TPG Growth, said in a statement. “The firm's unwavering commitment to client service and a fee-only fiduciary approach is a proven formula for success, and we look forward to supporting HB's vision of growing their capabilities and serving even more clients.”
In April, the firm hired Andrew Pagea former director and partner at Focus partner Ancora Holdings Group, to lead M&A efforts.
Earlier this month, Homrich Berg hired Joanna Irwin as chief marketing officer. She replaced Bill Bolen, who returned to focus on customer service. Irwin joined from Randstad, a talent company, where she was global CMO.