Neuberger Berman Buys Stake in Mariner in Latest RIA Deal
The deal is the latest example of major investments into the RIA space, with much of the funding coming from private equity.
Major financial firms just can’t get enough of the advice industry lately.
Just this week, Neuberger Berman Capital Solutions and funds managed by NB Private Markets acquired a “significant” minority stake in Mariner — it’s one of the largest RIAs in the country, with more than $245 billion in combined assets. The new funding will be used to help scale the Overland Park, Kansas-based RIA’s national advisor workforce to 5,000 advisors, according to a release. NB joined Mariner’s board of directors, and Mariner CEO and president Marty Bicknell will continue to lead the company.
The deal is the latest example of major investments into the RIA space, with much of the funding coming from private equity. Mariner already took on PE funding in 2021 when Leonard Green & Partners made a minority investment and joined its board.
Crazy For RIAs
The deals are coming in fast. In the first half of 2024, minority investments accounted for 11% of all transactions at RIAs, according to DeVoe & Company. Plus, the size of RIAs selling minority stakes spiked above historic norms, as over half of the deals involved “mega-sellers” with more than $5 billion in AUM.
The most notable deal in this recent RIA frenzy happened this summer, when Texas-based Fisher Investments sold a minority stake to PE group Advent International and Abu Dhabi’s sovereign wealth fund that valued the wealth management firm at $12.75 billion. And now it seems like everyone wants to get in on the RIA action:
- PE giant TPG splurged in September, acquiring minority stakes in both Homrich Berg and Creative Planning.
- Dynasty Financial Partners — an advisor services platform — closed a minority capital raise with backing from groups including BlackRock, JPMorgan, and Charles Schwab.
Stay or Leave? While many advisors welcome PE funding and minority investments — saying that the deals can help professionalize a firm and provide more capital for scaling — others still prefer to keep their distance.
Some 40% of advisors are considering leaving their current firm within the next two years, according to a J.D. Power report. And PE involvement plays a major role in that, said Craig Martin, J.D. Power’s executive managing director.
“With private equity coming in snapping up different firms, advisors are saying, ‘This is not what I signed up for,’” he told The Daily Upside in July. “You are more focused on growth than you are on me.”