The Private Equity World is Increasingly Interested in RIAs

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Driven by increased mergers and acquisitions (M&A) activity, the ecosystem of Registered Investment Advisor (RIA) firms has matured, developing new strategies, products, and therefore, growth opportunities. This dynamic, according to research firm Cerulli Associates, has caught the attention of major private equity firms, heightening their interest in taking part in the boom of this business.

The report, titled “The Cerulli Edge—The Americas Asset and Wealth Management Edition,” highlighted that there are over 18,000 RIAs focused on retail investors, boosting the potential for growth and scalability. According to a press release, new players are entering the market, including some of the largest private equity investors. The goal: to gain access to these increasingly important distribution channels.

Five years ago, Cerulli noted, private equity’s involvement with the RIA channel was limited to top-tier firms. However, as more opportunities have emerged in the market, more investors are seeking to deploy capital to help RIAs grow. As a result, competition has intensified for the fastest-growing advisory firms, creating bidding wars and larger-scale deals.

Moreover, despite higher interest rates and the 2022 market downturn, sector valuations have remained high.

Activity isn’t heating up solely in the large-firm segment, the report adds. While mega-deals still represent significant and growing opportunities for private equity in the RIA space, investors continue to be “very active” in segments with lower AUM, targeting firms with $2 billion to $3 billion in assets.

Given the size of the market, Cerulli emphasized that the trend still has room to grow.

Support and Competition

Given the rising interest in the sector, Cerulli stresses that private equity investors must add meaningful value to help their portfolio RIAs grow quickly.

“Core interest in RIAs remains strong, with stable revenues supported by tight-knit investor relationships, a high-growth area in wealth management, and a market composed predominantly of smaller, fragmented players,” said Stephen Caruso, Associate Director at Cerulli, in the press release.

“To better realize that growth potential, however, investors need to be prepared to support the RIAs in their portfolios, which may include backing future M&A transactions, guiding the executive team through periods of change, or developing the brand as a buyer,” he added.

Due to the attractiveness of the RIA space, Cerulli notes that private equity firms now face increasing competition from minority investors and private credit providers.

Retail investors, in particular, are seasoned industry participants with longer investment horizons. “Minority investors tend to have a more patient approach, allowing RIAs to grow without the pressure to scale quickly for an exit,” Caruso explained.

Additionally, the private credit industry has also entered the scene, offering valuable support to growth-oriented firms. “Private credit is becoming increasingly attractive to RIA channels as a non-dilutive form of capital. As firms weigh the cost of capital, those wanting to maintain control now have another option, with more providers entering the market,” the executive said.

SMBC hires Nick Stevenson

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The Sumitomo Mitsui Banking Corporation (SMBC) Americas Division has appointed Nick Stevenson as Group Head of Technology, Media, and Telecommunications (TMT) Corporate and Investment Banking (CIB). 

Based in New York, Stevenson will focus on expanding SMBC’s TMT business and will lead a team of bankers serving clients across the sector. He will report to CIB Co-Heads Stephanie Bowker and Yoshiyuki Natsuyama.

The appointment aligns with SMBC’s broader strategy to grow and diversify its corporate and investment banking platform in the Americas.

Stevenson brings more than 30 years of CIB experience, including 24 years at RBC Capital Markets, where he most recently served as Global Head of Media, Communications, and Entertainment Investment Banking. He also held senior roles at Bank of America and Citi earlier in his career.

“Nick’s industry relationships and deep knowledge of the TMT sector will continue to enhance our client franchise,” said Richard Eisenberg, Co-Head of Coverage and Capital Markets, SMBC Americas Division. 

Island Secures Investment in $5 billion Series E Round

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Enterprise browser company Island has added J.P. Morgan Private Capital Growth Equity Partners as a strategic investor in its Series E funding round, which was led by Coatue Management and values the company at nearly $5 billion. 

“Their [J.P. Morgan Growth Equity Partners’] support highlights how the Enterprise Browser solves organizations’ most complex, large-scale challenges in banking and beyond,” said Island CEO and Co-founder Mike Fey. 

The funding will support the Island’s continued product development, with a focus on expanding security, governance and user experience features tailored to enterprise IT and security teams. The company’s browser is used by over 450 enterprise clients, including six out of the ten largest U.S. banks. 

Island’s technology embeds security and compliance features directly into the browser, allowing organizations to control data access and monitor user activity without additional tools. The company has seen adoption across financial services, healthcare, government and other regulated sectors.

J.P. Morgan Growth Equity Partners, part of J.P. Morgan Asset Management, focuses on growth-stage investments in software, AI, cybersecurity and fintech. 

“Cybersecurity is a top strategic priority for the world’s largest enterprises,” said Paris Heymann, Co-Managing Partner of J.P. Morgan Growth Equity Partners. “We’re thrilled to support a pioneering company like Island in this space.” 

Ocorian expands its US presence with new appointment

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Global asset services provider Ocorian has appointed Deborah Buscema as Commercial Director for its U.S. funds business, further strengthening its North American sector. Based in New York, Buscema will report to Markus Jolic, Head of Sales Excellence and support the firm’s commercial growth across key markets. 

“The commitment to expansion and customer service excellence at Ocorian makes it an exciting time to be joining the company and I look forward to working with existing and new clients,” said Buscema. 

The announcement comes shortly after Ocorian signed an agreement, pending regulatory approval, to acquire the Fund Solutions division of Element 78 Partners LLC, a Chicago-based professional services provider. The acquisition is expected to enhance Ocorian’s fund servicing capabilities and client reach in the U.S.

Buscema brings over two decades of experience in senior business development roles. She most recently worked at Cority Software Inc. and previously held leadership positions at Apex Group and BNP Paribas, serving investment managers across the U.S., Canada, and Latin America. 

“Deborah’s extensive experience and deep expertise will be a significant asset to our funds business, supporting Ocorian’s continued growth in this strategically important area,” added Jolic. 

Avenue Sees a Future with More Internationalization Amid Wealth Transition in Brazil

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Trillions of reais abroad, seeking wealth allocation through sophisticated technological channels; Avenue foresees a major transformation in offshore investments by Brazilians in the future.

The topic was the focus of the second edition of Avenue Connection, which began on Wednesday, the 16th, in São Paulo, concentrating on the progress of international investment in Brazil, driven by the generational wealth transition.

The central theme of the event was the “Wealth Diaspora,” a concept that guided discussions on global allocation, changes in investor profiles, and new financial advisory structures.

At the opening conference, Daniel Haddad, Chief Investment Officer of Avenue, emphasized the urgency of diversification. “We are facing a real wealth diaspora. This capital needs to be planned with a long-term vision and geographic diversification,” he stated. According to him, “investing abroad is no longer a choice between alternatives, but a necessary component to preserve wealth against the loss of purchasing power of the local currency.”

This assessment is based on data from UBS, which estimates that $124 trillion will change hands by 2048 in the largest wealth transfer in history. Brazil ranks as the second-largest market in this process, with $9 trillion in transition.

Roberto Lee, CEO of Avenue, stated: “We are only at the beginning of what I call a great Brazilian wealth diaspora. We want to lead this movement, transform the market, and finally build a structural allocation abroad here. This is something that will have an impact for decades.” According to him, the change will be driven by the new generations. “For them, investment advisors who cannot offer products abroad are irrelevant.”

Lee also shared data about the profile of investors on the platform. As of 2023, over 80% were under 45 years old, with approximately one-third between 18 and 30 years old. “These young investors are making their first contributions directly into publicly traded companies in the United States. Instead of accumulating their savings in Petrobras shares, they are investing in companies like Nvidia, Tesla, Google, and Coinbase,” he said.

Another key point of the event was the advocacy for the fee-based advisory model, in which the professional is compensated with a percentage of the invested volume. “I don’t know if it will be next year or the year after, but fee-based will be dominant here. For us, this is already strategic in day-to-day operations, and we are building the entire infrastructure to be the best partner for anyone who wants to lead this change,” said Lee.

T. Rowe Price and SurgoCap Partners Lead iCapital’s Capital Raise

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iCapital’s latest capital raise brought in two new investors, joining follow-on investments from familiar faces to the fintech, helping the raise surpass $820 million. The round was led by T. Rowe Price and hedge fund SurgoCap Partners.

According to a press release, the round also included additional participation from State Street and increased commitments from three of the company’s long-standing backers: Temasek, UBS, and BNY. Altogether, this raised the company’s valuation to over $7.5 billion.

The capital will be used, according to the statement, to accelerate iCapital’s global acquisition strategy, geographic expansion, and technological innovation.

“The resources from this capital raise will be strategically deployed to accelerate our acquisition efforts, with a focus on enhancing our technology platform and expanding our data capabilities,” said Michael Kushner, Chief Financial Officer of the fintech, in the press release.

This marks a continued path of consolidation for iCapital, which was founded in 2013. In total, the company noted it has invested over $700 million into its platform and completed 23 strategic acquisitions, including recent purchases of Mirador, AltExchange, and Parallel Markets.

Currently, iCapital has $945 billion in assets under service globally on its platform. This includes $257 billion in alternative assets, $203 billion in structured investments and pending annuities, and $485 billion in client assets.

Moreover, the fintech emphasized that the last 12 months have seen a surge in global activity on its platform, with the number of funds rising to 2,100 and the number of financial professionals using the platform increasing to 114,000.

“This capital raise reflects our investors’ enthusiasm for the opportunity we have to transform the investment experience,” said Lawrence Calcano, Chairman and CEO of iCapital.

The capital round included Goldman Sachs as financial advisor and placement agent, while legal counsel was provided by Ropes & Gray.

Nymbus Integrates Bud Financial’s AI-Powered Tools

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Nymbus announced its partnership with Bud Financial to enhance its digital banking services. Bud will provide its financial management tools directly within the Nymbus platform. 

With Bud’s widgets integrated, financial institutions can give customers a clearer view of their finances, deliver more relevant tools and content, and personalize experiences across digital channels. The goal is to help banks go beyond basic digital services and offer smarter, more engaging interactions. 

This move supports Nymbus’ broader strategy following the launch of Nymbus Engage, a solution designed to help banks use customer data more effectively and build deeper relationships. 

“Together, we’re enabling their clients to move beyond legacy data into a new era of intelligent, insight-driven banking,” said Edward Maslaveckas, CEO at Bud

Bud, which has applied AI to financial data since 2015, helps institutions structure raw transaction data into actionable intelligence. The move positions Nymbus to serve community financial institutions better, looking to modernize their digital infrastructure and compete through smarter, data-led engagement strategies. 

“This integration supports our mission of providing banks and credit unions with the tools they need to grow, differentiate and deliver modern, personalized banking experiences,” said Jeffery Kendall, CEO and Chairman at Nymbus. 

Paul Weisenfeld Joins CIM Group

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CIM Group has appointed financial services veteran Paul Weisenfeld as Head of National Accounts, a move to grow its Private Wealth Group. Based in New York, Weisenfeld will lead efforts to expand CIM Group’s presence across the private wealth landscape, including wirehouses, broker-dealers, RIAs and independent financial advisors. 

With over 30 years of experience in wealth and asset management, Weisenfeld is known for his success in scaling distribution strategies and developing innovative investment solutions in both traditional and alternative asset classes. In his new role, he will oversee the National Accounts team and spearhead strategic initiatives aimed at enhancing CIM’s distribution footprint and deepening key partnerships. 

“I look forward to leveraging my experience to drive growth and provide innovative solutions across real estate, infrastructure and credit for our clients,” said Mr.Weisenfeld. 

Weisenfeld brings experience from serving as Senior Relationship Manager at Allspring Global Investments, where he led distribution efforts for new ETFs and helped double sales for three consecutive years at a key wealth management partner. 

Before that, he headed Key Accounts at Wells Fargo Asset Management and held senior roles at firms like Morgan Stanley and Citigroup Global Wealth Management. His early career began in law, with a focus on alternative investments at Smith Barney. 

“His leadership as Head of National Accounts will be instrumental as we broaden our reach in delivering innovative solutions to our partners and clients,” said Barry Schanker, Managing Director, Head of Private Wealth at CIM Group.

U.S. Housing Shortage Hits Record High

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The U.S. housing shortage surged to an all-time high of 4.7 million units, according to a new Zillow analysis of recently released Census data. Despite a boom in home construction, the deepening housing deficit remains the main driver of America’s housing affordability crisis. As a result, 8.1 million families are now “doubling up,” sharing homes with people they’re not related to, often due to financial necessity rather than choice. 

While 1.4 million new homes were added to the housing supply last year, they fell short of keeping pace with the 1.8 million newly formed families, resulting in a 159,000-home increase in the housing deficit. Although this marks a slower increase compared to the 257,000-unit jump in 2022, it highlights the persistent gap between supply and demand. 

“Construction has helped prevent the housing deficit from ballooning, but it hasn’t begun to close the gap,” said Orphe Divounguy, senior economist at Zillow. “We know what works: lower building restraints to allow for more density and less expensive housing.”

Millennials are most affected by this shortage, making up 38% of households doubling up with nonrelatives, the largest share among any generation. They’re followed by Gen Z (29%), Gen X (17%), and older generations (16%). 

The housing crunch is especially severe in major urban centers. Among the 50 largest metro areas, New York, Los Angeles, Boston, San Francisco, and Washington, D.C. have the largest housing deficits. Even though mortgage rates have dipped slightly compared to last year, a median-income family in 2024 would still need an additional $17,000 in income to afford a typical home, a significant jump from affordability levels in 2019. 

Vacancy data suggests that available housing isn’t necessarily accessible. Census figures show that 3.4 million homes sat vacant and listed for rent or sale in 2023, yet affordability barriers continue to leave millions without independent living options. 

Zillow researchers point to restrictive zoning and building regulations as key obstacles. In cities and states with fewer barriers to construction, developers were able to respond more rapidly to pandemic-era demand, helping to stabilize prices and rents faster. Builders completed 1.45 million units in 2023 and 1.63 million in 2024, the highest totals since 2007. 

Experts and housing advocates, including Zillow, are calling for local and state governments to relax zoning laws and encourage higher-density development such as accessory dwelling units (ADUs), duplexes and triplexes. These “middle middle” housing types could significantly increase supply and improve, especially in high-demand urban areas. 

“More of these measures at the local level can help get more homes built and begin to ease this outsize financial burden for millions of Americans,” added Divounguy. 

Dynasty Launches Investment Banking Primer

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Dynasty Financial Partners has released its first-ever Investment Banking Primer. This educational guide, aims to provide RIAs with essential knowledge about investment banking practices-critical as the RIA space sees record levels of mergers, capital raising and succession planning. 

“For those RIAs seeking to sell or grow, or secure a transformative investment, there is a lack of resources offering the level of guidance and education necessary to consider that first step,” said Sam Anderson, C-head of Dynasty Investment Bank. 

The move comes amid a shift in the independent RIA channel, now one of the fastest-growing segments in the wealth management industry. According to Cerulli’s 2024 Industry Report, the combined hybrid and independent RIA space has expanded at a CAGR of nearly 9% over the past 10 years. Capital investments in RIAs have surged as well, growing at a 45% CAGR in the past five years. 

With 37% of financial advisors planning to exit the business in the next decade, the potential transfer of an estimated $3 trillion in assets presents both a challenge and a massive opportunity. 

“In addition to an advisor shortage, there is a human capital shortage to support advisors, which is why an M&A deal is many times not just about clients, but also about the talent that comes with it to help provide further scale and support buyers,” said Harris Baltch, co-head of Dynasty Investment Bank. 

Launched in 2023, Dynasty Investment Bank specializes in M&A, valuations, capital, underwriting and succession planning for both wealth and asset management firms. The team has advised on 15 transactions, including cross-border deals, recapitalizations and private capital raises. 

“The strength of our balance sheet gives us tremendous flexibility in facilitating transactions for our clients and our transition and RIA service team are often great resources to help with onboarding,” said Shirl Penney, Founder and CEO of Dynasty Financial Partners. 

As of today, Dynasty’s network includes 55 partner firms with over 500 advisors managing more than $105 billion in assets. Its integrated RIA platform includes transition support, capital solutions, tech infrastructure and marketing services. These offer RIAs the ability to scale without sacrificing their independence.