Carlyle Group, an investment firm, plans to purchase a majority stake in RIA aggregator MAI Capital Management in a transaction valued at more than $2.8 billion. 

Carlyle’s investment in MAI Capital adds to the firm’s existing relationship with the RIA, after initially investing in MAI in 2021 through its investment in Galway Holdings, which acquired MAI that year. 

Following the acquisition, which is expected to close in the second quarter of this year, Galway Holdings and private ⁠equity firm Oak Hill Capital will exit from MAI. 

Additionally, MAI employees will retain a large minority equity stake in the firm, Carlyle said. 

Through the investment, MAI Capital will gain access to Carlyle’s suite of resources, and Carlyle will provide support to MAI to help the RIA further expand its services. 

After exiting its position from MAI, Galway Holdings will maintain its position as partners and will sell insurance-related products to clients. 

“As we looked for a long-term partner to help us achieve that vision, Carlyle stood out for its alignment with our culture and values along with their deep industry knowledge and expertise,” Rick Buoncore, CEO and chairman of MAI, said. “Deepening our partnership with Carlyle will unlock the next chapter for MAI, enabling us to expand our resources while maintaining the firm’s commitment to being a preeminent destination for clients and the fiduciary-minded advisors who serve them.” 

Following the closing of the deal, Carlyle will hold board seats and work with MAI’s management team. 

Carlyle’s move in MAI Capital comes after the RIA purchased Los Angeles-based Evoke Advisors, an asset firm, in November, marking the deal the largest acquisition for MAI. 

Buoncore, Evoke Advisors’ managing partner David Hou, alongside other employees, hold minority stakes in the firm, according to its latest Form ADV. 

Recently, Carlyle Group acquired Invesco’s investment management and financial planning arm, Intelliflo, for $200 million, which signaled the investment firm’s entry into the financial planning space. 

Cleveland-based MAI Capital Management, founded in 1973, currently manages $72.6 billion in assets under management.