TPG Acquires Minority Stake in Wealth Management Firm Homrich Berg

TPG has struck a deal to buy a minority stake in Homrich Berg, valuing the firm at approximately $1 billion. The transaction includes ownership previously held by New Mountain Capital. The independent financial advisory firm has offices in Georgia, Florida, South Carolina, and Tennessee, managing assets worth over $17 billion.

TPG has struck a deal to acquire a minority stake in Homrich Berg, valuing the wealth management firm at around $1 billion, sources familiar with the matter revealed on Thursday.

As part of the transaction, TPG will obtain an ownership interest in the company, which is currently managed by its leadership team and private equity firm New Mountain Capital. The discussions are confidential, according to those privy to the deal. Wealth management firms like Homrich Berg often attract private equity investors due to their steady cash flow generation and the industry's fragmented nature, which allows for rapid scalability through acquisitions.

Representatives from TPG, New Mountain, and Homrich Berg did not immediately respond to requests for comment. Based in Atlanta, Homrich Berg is an independent financial advisory and wealth management firm with offices in Georgia, Florida, South Carolina, and Tennessee. The firm manages assets exceeding $17 billion, as per their website.

Homrich Berg has been seeking a new minority investor to provide growth capital and to facilitate a partial exit for New Mountain from its investment made in 2021. The financial specifics of the 2021 transaction were not disclosed.

(With inputs from agencies.)