CAPTRUST Financial Advisors today announced that global investment firm Carlyle has become a strategic investor, providing capital that will be used to pursue strategic inorganic growth opportunities.

Carlyle is the second institutional capital partner for the Raleigh, N.C.-based CAPTRUST. In 2020, private equity firm GTCR acquired a minority stake in the firm to support its strategic plans to further expand the business nationally, at a valuation of $1.25 billion. CAPTRUST has since added 29 firms that broadened the company’s capabilities and geographic footprint, the company said in the release.

Neither GTCR nor any of CAPTRUST’s executive leadership teams will be selling secondary shares as part of the transaction, the release said.

CAPTRUST’s valuation, the release noted, has increased to more than $3.7 billion, with its equity value increasing by more than $2 billion to more than $3 billion. The new growth equity from Carlyle will be used to further drive the company’s M&A strategy, a news release said.

Additional terms of the deal were not disclosed.

“CAPTRUST was founded on the belief that everyone is best served by working with financial advisors that serve as fiduciaries, providing objective, conflict-free advice. Fast-forward more than 25 years, and that core belief remains the foundation of our tremendous growth,” Fielding Miller, co-founder and CEO of CAPTRUST, said in a prepared statement. “We remain focused on our clients first and have built out the infrastructure and advisor force to deliver world class solutions.”

Miller will continue to lead the firm and remain the largest individual shareholder, the release said. It also noted that more than half of CAPTRUST employees participate in one or more of the firm’s equity programs.

“The culture at CAPTRUST is driven by unity, or as we say, One Unified Practice. Our shareholder program is one of the ways that we show our people just how important they are to the success of our organization,” added Miller.

Jim Burr, head of global financial services at Carlyle, said, “CAPTRUST is one of the premier brands within the RIA industry, with a deep bench of expertise and resources that support a premium and ever-expanding service model.” He added that “the firm has the unique position of leveraging its size and scale to benefit not only clients, but also to benefit the communities it serves. This differentiated position, coupled with CAPTRUST’s vibrant culture and strong leadership, makes us incredibly excited to collaborate with our new partners."

“CAPTRUST has established a well-defined position within the RIA industry thanks to the firm’s scale across wealth management, retirement plans, and endowments and foundations,” said Collin Roche, GTCR co-CEO and managing director. “We believe in the future of this business and are pleased to maintain our full commitment as an investor and a strategic partner. We look forward to continuing to work with the management team to further build on CAPTRUST’s growth.” 

Founded in 1997, CAPTRUST has nearly 1,500 employees across 85 locations nationwide. The firm oversees more than $832 billion in assets, including just over $688 billion in nondiscretionary assets under advisement and just over $143 billion in discretionary managed account assets, as of June 30.

Carlyle has $385 billion of assets under management as of June 30. The firm employs more than 2,200 people in 29 offices across five continents.

GTCR was founded in 1980. Based in Chicago with offices in New York and West Palm Beach, Fla., the firm manages more than $35 billion in equity capital. It has invested more than $25 billion in more than 270 companies.