Rockford, Ill.-based Savant Capital Management announced on Monday that it has raised an additional $50 million in funding plus additional future capital commitments that will allow it to remain among the largest U.S. independent RIAs.
The additional capital addresses a retiring founder’s liquidity needs and creates a capital structure and investor group to support future opportunities for mergers and acquisitions.
The transaction closed on Friday, said Savant in a company press release.
The funding comes directly from Cynosure Group, an asset manager and an investment advisor to large family offices; three well-known single family offices, the Vlasic Group, Bootstrap Capital and Nonami Investments; Kingsway Financial Services, a publicly traded merchant bank; Charlie Johnston, the retired CEO of Smith Barney and president of Morgan Stanley Smith Barney; principles from Carson Group and Beaird Harris Wealth Management; 12 other private investors; and debt financing from a local community bank.
Brent Brodeski, CEO and founder of Savant, also made a large new equity investment.
“I am very excited about our new capital structure and ownership group,” said Brodeski in released comments. “With nearly 50 employee owners, we solidified Savant’s team to assure long-term continuity for our clients. Employee ownership attracts, retains and incentivizes key employees. In addition, the outside investors are providing Savant both capital and expertise to support our growth and assure we remain independent.”
Savant says that its private capital investors are long-term oriented and cannot require Savant to sell the firm.
Employees now own more than 75 percent of Savant, and the employee ownership group has been expanded from 19 to 47 participants.
Savant now has $4.7 billion in assets under management, placing it among the largest independent RIAs in the U.S.