Private equity firm Sixth Street Partners has agreed to invest $500m in Merchant Investment Management, as part of a $750m capital raise for the New York-based RIA minority investor, according to a report by CityWire.
The report cites unnamed sources familiar with the deal as confirming that Sixth Street, known for its stakes in companies like Spotify and the San Antonio Spurs, has joined a consortium of investors backing Merchant, though the other participants have not been identified.
Both Merchant and Sixth Street declined to comment on the transaction.
Merchant, which invests in RIAs and related businesses, has been working on the capital raise since 2023, when it initially sought $250m before increasing the target to between $400m and $550m. The firm’s leadership has reportedly told affiliates that its eventual aim is to go public.
Merchant, led by managing partners such as Tim Bello, Matt Brinker, and Bryan Staff, takes minority stakes of less than 20% in its RIA investments and also provides lending services to firms. Its portfolio includes New Jersey-based Private Advisor Group, Nashville-area SageSpring Wealth Partners, and Ohio-based OneSeven.
Last month, Merchant also acquired a minority stake in Republic Capital Group, an investment bank specialising in M&A advice for RIAs.
Sixth Street, headquartered in San Francisco, manages approximately $80bn in assets.
