Chicago-headquartered Cresset has sold a minority stake to Constellation Wealth Capital, the private equity company created by former Emigrant Partners CEO Karl Heckenberg late last year to invest in the growing RIA channel. Constellation has invested $150 million, representing less than 10% of Cresset’s equity.
Cresset Asset Management, which has more than $60 billion in assets under management, expects to use the funds to improve its technology and recruit advisor teams. The RIA will remain majority-owned by employees and clients.
“Constellation invests long-duration capital exclusively with wealth management businesses and multi-family offices, bringing significant experience that will serve our clients and team well,” said Avy Stein, co-founder and co-chairman of Cresset. “This investment serves as a strong validator of Cresset’s vision, business model, marketplace position and growth trajectory.”
Cresset was founded by Eric Becker and Stein in 2017 to manage their own families’ assets. The duo came out of the private equity world, and the firm has focused on bringing private placements to its wealthy clients. It serves high-net-worth clients, including entrepreneurs, CEOs and executives, as well as multigenerational families. Cresset provides boutique family office services, personalized wealth management, private investing opportunities and a community focused on peer-to-peer learning.
Launched last year by former Emigrant Partners CEO Karl Heckenberg, Constellation buys minority stakes in high-performing firms and provides them with cash, resources and expertise to take them to the next level of growth.
The firm has acquired stakes in a number of large RIAs, including Los Angeles-based Lido Advisors, with $24 billion in AUM, and AlTi Tiedemann Global, a publicly-traded international wealth management and alternative investments corporation with over $72 billion in assets across its subsidiaries.
