Rise Growth Partners, an RIA growth investor led by United Capital founder Joe Duran, today announced it has received a $250 million investment from Charlesbank Capital Partners.
The capital will be used to continue investments in RIAs, according to a press release. Rise plans to buy minority stakes in select RIAs, offering them financial and operational support, including "advice on how to optimize operations, cultivate organic growth and build a repeatable acquisition and/or recruiting process,” the release said.
“Joining forces with Charlesbank marks a significant milestone for our firm,” Duran, who serves as executive managing partner of Rise, said in the release. “Their team emphasizes integrity, collaboration, and excellence, all qualities that resonate deeply with our ethos. As we embark on this journey to transform the wealth management industry for the better, we’re confident we have the right capital partners in our corner.”
Rise plans to focus on firms with $1 billion to $5 billion in assets under management, the announcement said, with its first partners to be announced this year. In contrast, United Capital acquired controlling interest in much smaller firms, typically RIAs with $400 million in AUM or less.
That model was successful until it was sold to Goldman Sachs for $750 million in 2019. After several years of struggling to be integrated into the Goldman system, the giant Wall Street investment bank jettisoned the business and sold it to Creative Planning last year.
“We have been thoroughly impressed with the Rise management team and their vision to become the preeminent growth accelerator in the wealth management industry,” David Katz, managing director at Charlesbank, said in the press release. “Rise offers a unique value proposition grounded in the leadership team’s extensive industry and growth experience, its partnership culture, and its differentiated investment process.”
Additional terms of the transaction were not disclosed in the announcement.