Cresset Sells $150M Minority Stake to Constellation Wealth Capital
Cresset has secured a $150 million minority investment from Constellation Wealth Capital, the private equity firm established by former Emigrant Partners CEO Karl Heckenberg late last year to invest in the expanding RIA sector. The investment constitutes a stake of under 10%.
Cresset Asset Management, which has more than $60 billion in assets under management, will be the capital to further enhance the registered investment advisor’s platform, technology, and recruitment efforts. Cresset remains independent, with employees and clients being the majority owners of the business.
“We are pleased to welcome the Constellation team as partners in our mission to reinvent the way clients experience wealth. 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.
In 2017, former private equity executives Eric Becker and Stein established Cresset in collaboration with Doug Regan, the former Midwest regional head of JP Morgan Private Bank. All three men hold the position of co-chairmen at the company.
Constellation has acquired stakes in multiple large RIAs, including $24.1 billion Los Angeles-based Lido Advisors and $72 billion AlTi Tiedemann Global.
Key advisors to the deal included Moelis & Company LLC, Goldman Sachs, Latham & Watkins, ArentFox Schiff, Deloitte, KPMG, Kirkland & Ellis, Houlihan Lokey, and William Blair.
