Updated
Updated · The 401(k) Specialist · Aug 7
Carlyle Invests $600 Million in Prime Capital, Valuing Wealth Firm Above $1.8 Billion
Updated
Updated · The 401(k) Specialist · Aug 7

Carlyle Invests $600 Million in Prime Capital, Valuing Wealth Firm Above $1.8 Billion

3 articles · Updated · The 401(k) Specialist · Aug 7

Summary

  • $600 million from Carlyle’s Global Credit platform will give Prime Capital Financial hybrid capital, a minority owner and a strategic partner as the deal heads toward a mid-September close.
  • The transaction values the Overland Park, Kansas-based wealth manager at more than $1.8 billion and gives Carlyle two of seven board seats while leaving leadership, the advisor-led model and majority employee ownership intact.
  • Abry Partners is exiting after a three-year investment period in which Prime Capital expanded to 68 offices and nearly $50 billion in assets under management through acquisitions, advisor recruiting and infrastructure spending.
  • Prime Capital said the new backing should fund its next growth phase after more than 30 acquisitions since 2017, integration of over 50 advisory teams and roughly 10% annual organic growth.

Insights

Can Prime Capital sustain its aggressive acquisition spree without sacrificing the employee-owned culture that fueled its valuation?
Why are private equity giants increasingly using bespoke hybrid capital to quietly dominate the booming wealth management industry?