Executives at Homrich Berg, an Atlanta-based RIA integrator with $18 billion in assets, will sell a minority stake in the firm to TPG Growth, the middle market and growth equity platform of TPG, a San Francisco-headquartered private equity firm, the company confirmed.
The deal values the RIA at around $1 billion, according to a Reuters report.
Homrich Berg is currently backed by New Mountain Strategic Equity, an affiliate of private equity firm New Mountain Capital, which made a minority investment in 2021. New Mountain will maintain its investment, alongside TPG.
In June 2022, Homrich Berg completed a debt capital revolver, raising $75 million through a multi-bank syndication led by First Citizens Bank. That deal allowed Homrich Berg to maintain majority control of the firm.
Last year, Homrich Berg CEO Andy Berg stepped down from his position after growing the RIA integrator for nearly three and a half decades. President Thomas Carroll took over as CEO earlier this year, and the moves were part of a planned, multi-year transition that began when Carroll was hired in 2020.
"Partnering with minority investors who hold a shared vision for the future of the firm enables us to continue delivering outstanding service and advice within our independent, fee-only fiduciary model," Carroll said, in a statement. "It also allows HB to remain the largest shareholder group, with our management team retaining operational control, ensuring that our mission of being a trusted financial guide for our clients remains intact."
The investment will go towards new capabilities, improving client services and recruiting talent.
"Homrich Berg has seen strong organic and inorganic growth over the last several years as it has expanded in the Southeast,” said Jenny Tu, principal at TPG Growth, in a statement. “The Firm’s unwavering commitment to client service and a fee-only fiduciary approach is a proven formula for success and we look forward to supporting HB’s vision for enhancing their capabilities and serving even more clients."
In April, the firm hired Andrew Page, a former director and partner at Focus partner Ancora Holdings Group, to lead M&A efforts.
Earlier this month, Homrich Berg hired Joanna Irwin as chief marketing officer. She replaced Bill Bolen, who returned to focusing on client service. Irwin joined from Randstad, a talent company, where she was the global CMO.
