Creative Planning Inc., one of the nation's fastest growing RIAs with $38 billion in client assets under management, is expanding its footprint in the Midwest market with its first acquisition, Minneapolis-based The Johnston Group (TJG).

Peter Mallouk, Creative Planning CEO, said that the acquisition marked a turning point in his fast-growing firm’s growth strategy. “Until now, we have always grown largely through referrals,” he said. "This is just us stepping into the arena."

Mallouk indicated other acquisitions were likely, adding that future acquirees would need to take "a financial planning approach" and be fee-based with no proprietary products.

While Creative Planning has no internal mutual funds or hedge funds, it does design individual stock and bond portfolios for clients. It also has an internal fixed-income and options group and offer clients opportunities to invest in alternatives like private equity, private lending and private real estate.

No price for TJG was disclosed but Mallouk said Creative Planning did not give out equity and indicated that would be unlikely except in certain special cases for future acquisitions. "Never say never but for acquisitions of this size it wouldn't be on the table," he said.

TJG provides financial planning and investment management services to investors nationwide, and has a large presence in Minnesota, North Dakota and South Dakota, the company said.TJG, owned and operated by Brad Johnston, has more than $500 million in assets under management.

Mallouk said that his firm would now explore opportunities to partner with other firms that also shared the same values and vision as TJG, a model for future growth.

Established in 1983, Creative Planning is an independent wealth management firm with 26 offices and more than 25,000 clients in all 50 states. The company is headquartered in Overland Park, Kan.

Five years ago, the bulk of its clients were in the Midwest, but its growth has changed that. Today, its three biggest states are California, New York and Florida, followed by Texas and Illinois.