Chicago-based Cresset has sold a small stake to Constellation Wealth Capital. private equity firm founded by former Emigrant Partners CEO Karl Heckenberg late last year to invest in the growing RIA channel. Constellation has invested $150 million, representing less than 10% of Cresset's equity.
Cresset Asset Management, which has more than $60 billion in assets under management, expects to use the funds to upgrade its technology and recruit teams of advisers. RIA will remain majority owned by employees and customers.
“Constellation invests long-term capital exclusively with wealth management businesses and multifamily offices, bringing significant experience that will serve our clients and team well,” said Avy Stein, co-founder and co-chairman of Cresset. “This investment serves as a strong validation of Cresset's vision, business model, market position and growth trajectory.”
Cresset was founded by Eric Becker and Stein in 2017 to manage the assets of their families. The pair came out of the private equity world and the firm has focused on bringing private placements to its high net worth clients. It serves high net worth clients, including entrepreneurs, CEOs and executives, as well as multigenerational families. Cresset offers boutique family office services, personalized wealth management, private investment opportunities and a community focused on peer-to-peer learning.
Started last year from former CEO of Emigrant Partners Karl HeckenbergConstellation buys minority stakes in high-performing firms and provides them with the money, resources and expertise to take them to the next level of growth.
The firm has acquired stakes in a number of large RIAs, including Los Angeles-based Lido Advisorswith $24 billion in AUM, and AlTi Tiedemann Global, an international publicly traded wealth management and alternative investment corporation with over $72 billion in assets across its subsidiaries.