Neuberger Berman Capital Solutions and funds managed by Neuberger Berman Private Markets have acquired a minority stake in Mariner, a wealth management firm that advises on over $245 billion in assets across its affiliates. The RIA has raised $150 million in equity through the deal, according to Moody’s Investors Service.
Leonard Green & Partners, a Los Angeles-based private equity firm that made a minority investment in Mariner in 2021, will retain its stake. The firm will continue to be led by CEO and President Marty Bicknell, the firm’s majority shareholder.
"Mariner is fully committed to building the fiduciary service provider of the future,” said Bicknell in a statement. “With this investment and continued partnership, we are confident in our ability to reach new heights in both client service and business expansion as we continue to build a truly holistic financial services firm rooted in the vision of positively impacting the lives of many."
The investment will help Mariner continue toward its goal of building a 5,000-advisor base. The firm plans to do so through organic growth, including strategic alliances and referral partnerships, and inorganic growth via acquisitions.
Neuberger Berman will join Mariner’s board of directors alongside Leonard Green.
In conjunction with Neuberger Berman’s investment, Mariner will raise $100 million fungible incremental add-on to its $658 million first-lien loan due 2028, according to the ratings agencies. It will also add an additional $50 million to its revolving credit facility and extend its maturity to 2029.
“Each of Mariner's institutional capital partners further enhances its ability to execute against its aggressive growth goals, serving as a sounding board for new initiatives and adding value through strategic guidance,” Mariner said in a statement. “These relationships will allow Mariner to focus on driving forward its bold vision without compromising operational control or client service standards.”
S&P Global Ratings said its credit rating on Mariner was unchanged and that it expects the firm to use the funding for near-term acquisitions and for general and corporate purposes. Moody’s affirmed its ratings on the RIA, reiterating its stable outlook on the company. It assigned a Ba3 rating to the new senior secured first lien revolving credit facility, which is below investment grade.
"Recent acquisitions and organic operating leverage have improved operating results," Moody's analysts wrote. "For the twelve months ending 30 June 2024, net revenue rose by 28% to $528 million. Reported EBITDA margins have increased to about 30% and have become more consistent with peers. However, we expect that Mariner will continue to engage in M&A transactions that in addition to its higher debt burden will continue to constrain pretax earnings and margins."
Mariner used Ardea Partners to advise on the deal and Ropes & Gray as legal advisor. Neuberger Berman used Cravath, Swaine & Moore LLP as legal advisor, while LGP used Latham & Watkins.
Mariner was founded in 2006 in Overland Park, Kan., with $300 million in assets. It has since grown into one of the largest independent RIAs in the country. It has completed 36 acquisitions since June 2021.
