There has been a trend of investment houses putting money into RIAs that want to make acquisitions, part of an M&A trend in North American wealth management.

Charlesbank Capital Partners, a US middle-market investment firm, has committed $250 million into Rise Growth Partners. Rise will use the capital to acquire “significant” minority stakes in RIAs.

Rise is targeting firms with assets under management ranging from about $1 billion to more than $5 billion, a statement from the firm said yesterday. On its website, Rise calls itself "the ultimate growth partner for exceptional advisory firms."

“Its approach includes supporting management teams that are looking to accelerate the growth of their firms with the backing of industry experts and growth-oriented capital partners,” Rise said. 

The move highlights how private equity and other money continues to enter the RIA space, driving M&A activity as firms seek to tap into a rising wealth management market. 

Alongside Joe Duran (pictured), executive managing partner of Rise, the firm’s leadership team consists of Darius Mirshahzadeh, executive managing partner, Terri Kallsen, managing partner and operating partner, Brian Shenson, MP and chief operating officer, and MPs Mike Mirshahzadeh, Dan Newhall, and Phil Jacobson.

An important rival for Duran in the business of taking minority stakes is Karl Heckenberg, raising money for his venture, Constellation Wealth Capital. As noted late last month by US correspondent for FWR Charles Paikert, Constellation Wealth Capital bought stakes in Lido Advisors, a Los Angeles-based firm with more than $19 billion in AuM and San Francisco-based Perigon, with $6.5 billion in assets.

Rise said it intends to announce its select group of initial partner RIAs during this year.

Ardea Partners served as the exclusive financial advisor to Rise in conjunction with the transaction. Simpson Thacher & Bartlett provided legal counsel to Charlesbank, and Kilpatrick Townsend & Stockton provided legal counsel to Rise.