Carlyle and Bain Capital are the last remaining bidders in a process to acquire Wealth Enhancement, a registered investment adviser overseeing close to USD 160 billion in client assets, according to people familiar with the matter. The two private equity groups are competing to buy the platform from its current owners, TA Associates and Onex, at a valuation of roughly USD 7 billion including debt.
Under TA Associates and Onex, Wealth Enhancement has pursued an acquisition strategy, buying at least six smaller registered investment advisers since 2025 in an effort to add scale. The firm is among the larger private equity-backed independent wealth managers that have driven consolidation across the sector in recent years.
Registered investment advisers, commonly referred to as RIAs, compete with banks in advising wealthy individuals and business owners on investment strategy in exchange for fees. Their recurring revenue models and stable client bases have made them attractive targets for private equity investors seeking predictable returns.
Wider trend of private equity interest
The bid for Wealth Enhancement follows a series of comparable transactions in the wealth management space. Mubadala Capital agreed an USD 8.8 billion take-private deal for CI Financial in 2025, following Clayton Dubilier & Rice's USD 7 billion buyout of Focus Financial Partners in 2023. Advent International has also taken a minority equity position in Fisher Investments, while TPG has invested in Creative Planning, both companies with a significant footprint in the sector.
Despite this run of dealmaking, some private equity executives have expressed concern that the wealth management industry may now be overinvested, noting that certain long-held positions have not delivered anticipated returns. Valuations of listed wealth managers, including LPL Financial, have also declined this year, partly reflecting uncertainty over how artificial intelligence could affect financial advisory services in the coming years.
TA Associates and Onex engaged Evercore in recent months to run the sale of Wealth Enhancement. The process is understood to be at an advanced stage, though people familiar with the matter cautioned that a deal is not guaranteed, and the current owners could ultimately choose to retain the asset.
