TPG Acquires Minority Stake in Wealth Manager Homrich Berg, According to Reuters

By David French and Milana Vinn

Private equity firm TPG has agreed to acquire a minority stake in Homrich Berg, a move that will enable the wealth management company to explore growth opportunities, as announced by both parties on Thursday.

The financial details of the investment were not disclosed, but sources indicated earlier in the day that TPG’s investment places Homrich Berg’s valuation at approximately $1 billion.

Following the TPG agreement, the management team of Homrich Berg will continue to maintain control of the business. Notably, private equity firm New Mountain Capital is also a minority stakeholder in the firm.

The investment from TPG Growth, the middle market and growth equity arm of the buyout firm, is expected to enhance Homrich Berg’s capacity, attract high-caliber talent, and improve client services.

The wealth management sector has consistently attracted interest from private equity investors, who favor companies with reliable cash flows. Additionally, the industry’s fragmented character often allows for rapid scaling through the acquisition of competitors.

Homrich Berg, based in Atlanta, is an independent financial advisory and wealth management firm with a presence in Georgia, Florida, South Carolina, and Tennessee. It ranks among the top 50 registered investment advisers in the United States and manages over $18 billion in assets. New Mountain Capital made its initial investment in Homrich Berg in 2021.