Exclusive: TPG Leads Investment in Creative Planning Valued at $15 Billion, Sources Report

By Milana Vinn and David French

A buyout firm has reportedly positioned itself as the leading candidate to acquire a minority stake valued at $2 billion in Creative Planning, potentially valuing the wealth management firm at upwards of $15 billion, according to sources familiar with the situation.

This deal would mark the firm’s second investment in a wealth manager within a week, highlighting the growing interest in the sector known for its substantial fee income. Just days ago, the firm secured a minority stake in Homrich Berg.

Based in San Francisco, this buyout firm is expected to emerge victorious in a competitive bidding process for the stake in Creative Planning, which attracted attention from other private equity firms, such as Permira. The sources, who wished to remain anonymous due to the confidential nature of the discussions, indicated that an announcement could be made in the near future.

If successful, this acquisition would make the firm a co-owner of the wealth manager, sharing this position with private equity firm General Atlantic, which purchased a minority stake in Creative Planning back in 2020.

Both firms and Creative Planning have declined to comment on the ongoing discussions.

Wealth management firms tend to draw strong interest from private equity investors who favor businesses that can deliver consistent cash flows. Additionally, the fragmented nature of the wealth management sector allows for potential rapid growth through the acquisition of competitors.

Creative Planning, located in Overland Park, Kansas, provides a range of services including financial and tax planning, retirement strategies, and business financial consultancy, managing over $300 billion in assets as of late 2023.

Last year, Creative Planning announced its intention to acquire the personal financial division of Goldman Sachs as the investment bank pivoted its focus within the wealth management sector towards high net-worth clients, abandoning its consumer lending activities.

Founded in 1992 by private equity executives Jim Coulter and David Bonderman, this buyout firm had approximately $229 billion in assets under management as of the end of June, reflecting a significant 65% year-over-year increase. Under the leadership of Jon Winkelried, the firm experienced a 60% rise in fee-related income from asset management in its most recent quarter.