$375B Creative Planning Sells Minority Stake to TPG

Creative Planning announced that alternative asset manager TPG has made a “substantial” minority investment in the company. TPG is investing in the business through TPG Capital, its U.S. and European private equity platform. Terms of the transaction were not disclosed.

The announcement follows a Reuters report indicating that TPG was a leading candidate to acquire a $2 billion minority stake in Creative Planning, a transaction that could value the company at over $15 billion.

TPG Capital joins existing investor General Atlantic, who made a minority investment in 2020. Creative Planning president and CEO, Peter Mallouk, will continue to lead the business and maintain a majority stake.

“This new investment from TPG Capital is recognition of the unique value we create for our clients and the growth and expansion opportunities ahead for our business,” said Mallouk.

The transaction represents TPG’s second investment in a wealth management firm within a week and highlights the increasing desire for transactions in a sector that produces substantial fee income for managers.. Last week, the buyout firm announced a minority stake in Homrich Berg, an Atlanta-based registered investment advisor with $18 billion in assets under management.

Overland Park, KS-based Creative Planning oversees $375 billion in combined assets under management and advisement.

Goldman Sachs acted as exclusive financial advisor to Creative Planning, and Paul Weiss provided legal counsel. J.P. Morgan Securities LLC and RBC Capital Markets acted as financial advisors to TPG Capital, and Davis Polk provided legal counsel.