Lovell Minnick Partners LLC, a private equity firm, has agreed to buy Kanaly Trust, a wealth management firm with approximately $2 billion in assets under management, according to an announcement from Kanaly.

The terms of the buyout were not made public. The deal is expected to be completed during the fourth quarter of this year.

Kanaly, based in Houston, serves as the trustee or executor for estates totaling more than $2.5 billion, and provides financial planning and trust and estate services to families, individuals and estates with assets in excess of $1 million. Lovell Minnick, based in Philadelphia and Los Angeles, provides buyout and growth capital to companies in the financial services industry and has raised more than $850 million from private and institutional investors.

Lovell Minnick conducted an extensive search to identify a firm with a leading trust and wealth management platform, said James E. Minnick, Lovell Minnick's president and managing director.

Drew Kanaly will remain chairman of Kanaly Trust and Jeff Kanaly will serve as vice chairman. Bill Rankin, who was most recently president and CEO of Shelterwood Financial, is expected to join Kanaly Trust as CEO.

Proceeds from the transaction will be used to provide liquidity to certain existing shareholders and promote future company growth, Kanaly says. The Kanaly family, along with members of the Kanaly Trust's senior management team, will still have an investment in the firm and work with clients.

"Lovell Minnick has the expertise and resources to help Kanaly Trust get to the next level, and it is comforting to know that Kanaly Trust has a succession plan that will benefit our clients and personnel for years to come," says Jeff Kanaly.

-Karen DeMasters