In that respect, ACP expects to be more like Fiduciary Network and make mostly minority investments. “What determines whether it is a debt or equity investment depends on what type of growth capital the RIA wants,” Gregg says. “More often than not, our equity investments are [likely to be] minority interests.”

Gregg and other Aequitas executives believe that whether interest rates remain low for an extended period or bond yields rise (meaning that bond prices and investor principal would decline in value), advisors and their clients are going to look to alternatives as a substitute for income. Gregg noted that Aequitas historically offers fixed-income alternatives to institutions that are now available to affluent retail investors and have yields ranging from 5 percent to 9 percent for six months to three years.

Earlier this year, Aequitas acquired Maple Bay Asset Management, a Portland firm that specializes in private credit and has been participating in the fast-growing, peer-to-peer lending business.

The firms that ACP has invested in vary in nature, but share common traits. All are growth-driven RIAs that utilize alternative investments.

Sica Wealth Management in Morristown, N.J., has about $1 billion in assets and Aequitas invested in a new start-up alternative investment platform, Circle Squared Alternative Investments, which shares a common managing member, Jeffrey Sica.

Fieldstone Financial is a Boston-based RIA with more than $250 million in assets. Gregg noted that Fieldstone has been acquiring RIA firms with asset bases of $30 million to $90 million. With additional capital from ACP, it is no longer constrained and can acquire firms with up to $300 million, accelerating its growth.

“We’re looking to provide service, support, high-quality education and due diligence to aid RIAs with their growth endeavors,” Gregg said.

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