Private equity firm CIVC Partners has acquired a controlling interest in Cary Street Partners, a Richmond, Virginia-based wealth and asset manager overseeing approximately $10bn in assets under management, according to a report by CityWire.
While the exact terms of the deal have not been disclosed, Cary Street CEO Joe Schmuckler confirmed that CIVC now holds a slight majority stake in the firm. The transaction included significant equity rollover from insiders, with 35 employee and executive shareholders reinvesting nearly all of their existing equity.
The deal marks a strategic recapitalisation for Cary Street Partners, aimed at reinforcing its balance sheet and supporting future growth, particularly in M&A.
“This is about as close to a 100% roll for the insiders as can be,” said Schmuckler. “We’re excited to give our early investors an opportunity for liquidity, while positioning the firm for its next phase of expansion.”
Previous backers Atlantic Union Bank and Ducera Partners have both reduced their stakes as part of the transaction. Atlantic Union, which became an investor through Cary Street’s 2022 acquisition of its $1.6bn RIA subsidiary Dixon, Hubard, Feinour & Brown, has exited entirely. Ducera retains a minority interest.
Founded originally as an investment bank in the early 2000s, Cary Street entered wealth management in 2004 and has been an active acquirer of RIAs since 2007. Today, it operates 19 offices across seven states, offering services across wealth management, asset management, and insurance. Earlier this month, it added Fort Worth-based Keene & Dorchak, a $200m AUM RIA, to its platform.
CIVC, a Chicago-based private equity firm founded in 1970, specialises in middle-market business services and typically invests between $20m and $100m in companies with EBITDA of $5m to $30m. Cary Street marks its only current investment in an independent wealth manager.
The deal is expected to close pending regulatory approval. Dalphia Partners advised Cary Street Partners on the transaction, while Sherman & Company advised CIVC. Legal counsel was provided by Williams Mullen, Reed Smith, and Ropes & Gray.
