Carlyle's Global Credit platform has agreed to invest roughly $600 million in hybrid capital into Prime Capital Financial, a move that values the Overland Park, Kansas-based registered investment advisor at an enterprise value exceeding $1.8 billion. The transaction, disclosed late Thursday, also marks the exit of Boston-based private equity firm Abry Partners, which had backed Prime Capital since 2023.
According to Abry, its partnership with Prime Capital's management helped expand the firm's family office and tax-planning capabilities while funding the operational infrastructure for its next growth phase. Vidur Khatri of Abry noted that Prime Capital's leadership quality and differentiated strategy made it stand out from the start, adding that the firm's acquisition and advisor recruiting momentum positions it well for continued success.
Prime Capital's growth since Abry's initial investment has been substantial. The firm has expanded from roughly $2.5 billion in assets under management and seven offices in 2017 to 68 offices and nearly $50 billion in assets today, driven by more than 30 acquisitions and the integration of over 50 advisory teams. CEO Glenn Spencer emphasized that the firm measures success by client value creation, not just asset totals, and that Carlyle shares that long-term perspective.
Under the new structure, Prime Capital's approximately 180 advisor-owners will retain majority employee ownership, with the leadership team and business model remaining unchanged. Gary Jacovino, a partner in Carlyle's Global Credit unit, cited Prime Capital's "differentiated institution with a distinctive culture, exceptional leadership and a compelling long-term vision" as key attractions.
The transaction, advised by William Blair, Goldman Sachs, Kirkland & Ellis, Spencer Fane, and KPMG for Prime Capital and Abry, is expected to close before September 15, pending regulatory approval. Carlyle was advised by Debevoise & Plimpton.
Carlyle's expanding wealth management footprint
The investment extends Carlyle's recent RIA dealmaking spree. In March, Carlyle took a majority stake in Cleveland-based MAI Capital Management, valuing that RIA at over $2.8 billion—its first controlling interest in a wealth manager. That followed a minority position in RIA aggregator CapTrust. MAI's CEO, Rick Buoncore, indicated the new capital would support further acquisitions, similar to its prior tie-up with Evoke Advisors.
More recently, Carlyle and Bain Capital were reported as final bidders for Wealth Enhancement, a Minneapolis-based RIA overseeing nearly $160 billion in client assets, with a potential valuation of roughly $7 billion including debt. These moves underscore the aggressive pursuit of the independent wealth management industry's recurring fee-based revenue model by large private capital pools, even amid concerns of overinvestment in the sector.
Prime Capital settles poaching suit
The Carlyle transaction comes days after Prime Capital resolved a separate legal dispute with Edelman Financial Engines. Court filings submitted August 4 in Delaware established a joint permanent injunction governing advisor movement between the two firms, settling Edelman's claims of advisor poaching and client data theft. The lawsuit, filed last November, alleged Prime Capital used a "playbook" to recruit dozens of financial planners while extracting confidential information.
For more on the settlement, see the details of the injunction. The broader RIA M&A landscape remains active, as seen in recent partnerships and acquisitions.
