RIA Merit Financial Advisors has sold a minority stake to Constellation Wealth Capital, as the firm’s present stakeholders are set to exit the deal. 

Chicago-based Constellation Wealth Capital, founded in 2023, a private equity firm with a specialization in providing advisory services to wealth managers, will assist Atlanta-based Merit Financial Advisors with its expansion through acquisitions, advisor recruitment, advanced technology, and personalized client experience initiatives, the firm said. 

The funding comes as Merit seeks to grow its advisor base and bolster its outreach across the country.  

The partnership will “reinforce” Merit’s “commitment to delivering high-quality, personalized financial planning and wealth management services to high-net-worth individuals, families, and those navigating life transitions,” the company said. 

“This investment marks an exciting chapter in Merit’s journey,” Kay Lynn Mayhue, president of Merit Financial Advisors, said. “CWC’s support will allow us to accelerate our strategic initiatives and further strengthen our capabilities for our advisors and their clients. We remain focused on growing the right way through values-driven leadership and by empowering our team to thrive in service of others.” 

Currently, Wealth Partners Capital Group, a financial services firm, and equity firm HGGC have held a minority stake in Merit Financial Advisors since December 2020.  

The transaction is expected to close in the third quarter of this year. Financial terms were not disclosed.  

Last July, Merit Financial Advisors parted ways with LPL Financial, after being associated with the firm as an office of supervisory jurisdiction since 2010. 

New York-based Ardea Partners, an investment bank, William Blair, Holland & Knight, and Kirkland & Ellis, respectively, served as the lead financial advisor and legal counsel to Merit Financial Advisors. Goldman Sachs served as financial advisor, and Gibson, Dunn & Crutcher served as legal counsel to Constellation Wealth Capital. 

Merit Financial Advisors manages approximately $19.94 billion in assets under advisement across 40 offices, the firm said.