Captrust Financial Advisors, an independent registered investment advisor with $390 billion in client assets under advisement, has received a 25 percent minority growth investment from Chicago-based private equity firm GTCR. The investment reflects a $1.25 billion valuation of Captrust.
Fielding Miller, Captrust co-founder, chairman, and CEO, will continue to lead the firm and remain its largest shareholder, the company said.
Captrust began the process of identifying a capital partner in mid-2019. After completing 40 transactions since 2006, the firm said that it was anticipating the opportunity to deploy additional capital to support its plans to further expand the business nationally.
“We see tremendous opportunities ahead, and to execute them successfully, we needed a strong capital partner,” said Miller. “It was important to find a partner that not only understands our Captrust mission, our people, and our strategy, but also respects our passionate commitment to independence and focus on the long term. GTCR has a notable track record of partnering with companies considered to be best-in-class in their respective industries and helping them accelerate success.”
GTCR is investing in Captrust with a minority interest and a minimum 7-year investment horizon, and it will hold two of the nine seats on the board.
The leadership and employees of Captrust will continue to hold the majority interest in the firm following the transaction. A portion of the proceeds from the investment will provide partial liquidity to shareholders and a portion will be held as primary capital to fund acquisitions.
“We see great potential in the independent RIA space and believe that Captrust is uniquely positioned to continue its extraordinary growth trajectory through the current market conditions and beyond,” said Collin Roche, managing director of GTCR. “They have a history of being aggressive when markets are uncertain, so this is an ideal time to partner with Fielding and his deep bench of talented professionals.”
Captrust has more than 700 employees and 43 offices in 21 states. The firm has more than $390 billion in assets under advisement, including more than $45 billion in managed assets for private clients and institutional investors.
GTCR has invested more than $15 billion in more than 200 companies since its 1980.
Founded in 1997 in Raleigh, North Carolina, Captrust is an independent RIA with more than 700 employees nationwide and provides investment advisory, asset management, and planning services to affluent private clients and institutional investors.