# Aggregators, integrators and minority investors: the RIA buyer types compared

URL: https://www.financialadvsr.com/guides/ria-aggregators-explained
Updated: 2026-10-10
Publisher: Financial ADVSR (https://www.financialadvsr.com)

An RIA aggregator is a firm that buys all or part of many independent registered investment advisers, usually with private equity backing, and lets the acquired firms keep much of their brand, leadership and investment process while supplying capital and shared services. An integrator, by contrast, folds acquired firms into a single brand and operating platform, and a minority investor buys a non-controlling stake while the founders keep control. All three models are central to RIA consolidation, which Echelon Partners said reached a record 466 announced deals in 2025.

Key points:
- Echelon Partners counted 466 announced wealth management transactions in 2025, up 27.3% from 2024, with financial sponsors involved in 75.8% of activity.
- Focus Financial Partners was taken private by funds affiliated with Clayton, Dubilier & Rice and Stone Point Capital in a deal completed Aug. 31, 2023, at an enterprise value above $7 billion.
- Focus has said in SEC filings that it generally bought 40% to 60% of a partner firm's earnings before partner compensation, taking a cumulative preferred position.
- TPG Capital took a minority stake in Creative Planning in 2024, joining General Atlantic (a 2020 investor), while CEO Peter Mallouk kept a majority stake.
- Mubadala Capital completed its take-private of CI Financial, parent of U.S. wealth firm Corient, on Aug. 12, 2025.
- Mercer Advisors added Altas Partners as an investor alongside Genstar Capital and Oak Hill Capital in 2023, in a recapitalization InvestmentNews said raised more than $1 billion.
- Aggregators often fund acquisitions with debt; in early 2023 InvestmentNews reported private financing priced near SOFR plus 600 basis points as rates rose.

## What is an RIA aggregator?

An RIA aggregator is a company that acquires ownership in many independent advisory firms and runs them as a group. The acquired firms typically keep a large measure of independence: their own brand, local leadership, client service model and often their investment approach. The aggregator supplies capital, back-office operations, technology, compliance support and access to a larger balance sheet for further acquisitions.

The term is used loosely in the industry. Some buyers take stakes in firms and leave branding and investment decisions largely with the acquired firm; others absorb acquired practices as branches or teams under one brand; and many combine elements of both. Many large buyers now describe themselves as partnerships or platforms rather than aggregators.

## How do aggregators, integrators and minority investors differ?

The aggregator or partnership model leaves much of the acquired firm intact. Focus Financial Partners is the best-documented example. In its public filings, Focus said it generally bought 40% to 60% of a partner firm's earnings before partner compensation (EBPC), paid a multiple of that share in cash, equity and contingent consideration, and took a cumulative preferred position in a defined level of base earnings. The selling principals kept the remaining earnings through a management company under a management agreement.

The integrator model brings acquired firms fully under one brand, registration and operating system. Mercer Advisors is a commonly cited example. WealthManagement.com reported that Mercer does not operate as an aggregator and instead folds acquired firms into its operations and culture, and that it updated its brand to reflect its position as a national RIA with a fully integrated offering. Integrators trade local autonomy for consistency in service, technology and investment management.

A minority investor buys a non-controlling stake, leaving the founders in charge. In the RIA market this is most often a private equity fund investing in a large firm, such as TPG's 2024 stake in Creative Planning or Carlyle's 2023 investment in CAPTRUST. Minority deals give owners liquidity or growth capital without handing over control.

## What role does private equity play?

Private equity is the main source of capital behind RIA consolidation. Counting both their direct investments and the acquisitions made by platforms they back, private equity and other financial sponsors had a hand in 353 of the 466 wealth management deals announced in 2025 (75.8%), according to Echelon Partners. Echelon attributed the record year in part to repeat acquirers, private equity recapitalizations, new platform investments and more minority investments.

Private equity firms rarely hold a wealth platform indefinitely. A recapitalization is a transaction in which the ownership group is reshuffled: an incoming investor buys out some or all of an existing one, new equity is often raised, and management may sell part of its stake. These deals provide liquidity to earlier investors and employee owners while resetting the firm's valuation and capital for more acquisitions.

Mercer Advisors shows how ownership can layer over time. In 2023, Altas Partners joined existing backers Genstar Capital and Oak Hill Capital in a deal InvestmentNews reported would raise more than $1 billion in common equity and value Mercer at more than $3 billion, with most proceeds providing liquidity to existing investors.

## Who are the major acquirers, and who owns them?

Focus Financial Partners, formerly listed on Nasdaq, was taken private by funds affiliated with Clayton, Dubilier & Rice and Stone Point Capital. CD&R said the all-cash deal, at $53 per share and an enterprise value of more than $7 billion, was completed on Aug. 31, 2023, with Stone Point remaining a minority shareholder. At Hightower, private equity firm THL (Thomas H. Lee Partners) said in December 2020 that it had closed a secondary transaction under which it would remain Hightower's lead investor through a new vehicle that included funds advised by Goldman Sachs Asset Management, Neuberger Berman and Coller Capital.

Wealth Enhancement Group announced on Aug. 24, 2021, that Onex would invest and become an equal capital partner with TA Associates, its existing institutional shareholder. Mariner, whose first institutional capital partner was Leonard Green & Partners in 2021, announced a minority investment from Neuberger Berman Capital Solutions in October 2024, with Leonard Green remaining on the board. CAPTRUST took its first institutional investor, GTCR, in 2020 and announced a minority growth investment from Carlyle in September 2023, saying neither GTCR nor its executives would sell shares in that transaction.

Creative Planning took a minority investment from General Atlantic in 2020 and announced a substantial minority investment from TPG Capital in late September 2024, with Peter Mallouk keeping a majority stake, according to the firm's release. Beacon Pointe announced an investment from KKR in November 2021, saying its team would continue to own more than 50% of the company and that prior investor Abry Partners would fully exit. Corient is the U.S. wealth business of CI Financial, which Mubadala Capital took private in a deal completed Aug. 12, 2025, at an enterprise value of about C$12.1 billion, according to the companies.

## What do sellers get, and what do they give up?

Sellers typically get liquidity for some or all of their equity, a succession path for founders, and access to resources they could not easily build alone, such as tax, trust and estate services, technology, marketing and compliance staff. Many deals also give sellers equity in the buyer, which lets them share in future growth and in any later recapitalization.

Consideration is usually a mix of upfront cash, equity in the buyer (often called rollover equity) and contingent payments, or earnouts, that depend on how the business performs after closing. Earnouts and rollover equity both tie part of the seller's payout to results after the deal. RIA Intel, citing Advisor Growth Strategies data, reported that RIA-to-RIA deals in 2019 averaged about 70% cash, 22% equity and 8% contingent consideration, compared with 47% cash, 41% equity and 12% contingent consideration from 2015 to 2018; mixes vary widely by buyer and over time.

What sellers give up depends on the model. In an integrator deal, they usually give up their brand, their own Form ADV and control over investment and operating decisions. In a partnership deal like Focus's, they may keep their brand and management but give the buyer a preferred claim on earnings, which, as Focus's filings describe it, means principals' share absorbs a shortfall before the buyer's base earnings do. Minority deals preserve control but add an outside owner with its own return targets and, often, a board seat.

## What are the risks of aggregator ownership?

Leverage is the most cited financial risk. Aggregators commonly borrow against earnings to fund acquisitions. In February 2023, InvestmentNews published commentary noting that financing some operators had modeled at about 5% had moved to SOFR plus 600 basis points, or over 9%, and that leverage at some private consolidators had risen from about six times earnings to as much as 7.5 to 8 times.

Integration and culture are the operational risks. Financial Planning's coverage of the Boston Private and Banyan Partners combination described the departure of the CEO and key advisors and stalled asset growth eight months after closing, which a rival executive blamed on the difficulty of blending different cultures. Integrators must also move clients onto new technology, custody and investment processes, while aggregators must keep semi-independent partner firms aligned.

Ownership change is a structural risk. Because private equity owners typically sell or recapitalize within several years, a seller who joins an aggregator may end up working under a different controlling owner later. Sellers should understand how their rollover equity is treated in a future sale, what governance rights they hold and what happens to their earnings if results fall. This guide is general information, not legal, tax or investment advice.

## Questions

**What is an RIA aggregator?** An RIA aggregator buys all or part of many independent advisory firms and runs them as a group, usually with private equity backing, while letting acquired firms keep much of their brand and leadership.

**What is the difference between an aggregator and an integrator?** An aggregator leaves acquired firms largely independent in brand and operations, while an integrator folds them into one brand, one registration and one operating platform. Many firms mix elements of both.

**What is a minority investment in an RIA?** A minority investment is the purchase of a non-controlling stake, so the founders keep control. TPG's 2024 stake in Creative Planning, in which CEO Peter Mallouk kept a majority stake, is one example.

**What is a recapitalization in RIA M&A?** A recapitalization reshuffles a firm's ownership: a new investor buys out some or all of an existing one, new equity may be raised and management may sell part of its stake. Mercer Advisors' 2023 deal bringing in Altas Partners is an example.

**How did Focus Financial structure its partner deals?** According to its SEC filings, Focus generally bought 40% to 60% of a partner firm's earnings before partner compensation and took a cumulative preferred position in base earnings, with principals keeping the rest through a management company.

**Who owns Focus Financial Partners?** Funds affiliated with Clayton, Dubilier & Rice acquired Focus in a take-private completed on Aug. 31, 2023, with Stone Point Capital remaining a minority shareholder, according to CD&R.

**How many RIA deals were there in 2025?** Echelon Partners counted a record 466 announced wealth management transactions in 2025, up 27.3% from 2024, including 185 deals involving firms with at least $1 billion in assets.

Sources:
- Clayton, Dubilier & Rice: Clayton, Dubilier & Rice Completes Acquisition of Focus Financial Partners (https://www.cdr.com/news/clayton-dubilier-rice-completes-acquisition-of-focus-financial-partners)
- SEC: Focus Financial Partners Inc. Form 10-Q (2021) (https://www.sec.gov/Archives/edgar/data/1651052/000155837021006056/focs-20210331x10q.htm)
- Business Wire: Creative Planning Announces Strategic Investment from TPG Capital (https://www.businesswire.com/news/home/20240929582817/en/Creative-Planning-Announces-Strategic-Investment-from-TPG-Capital)
- Wealth Enhancement Group: Wealth Enhancement Group Welcomes Equity Investment from Onex to Drive Next Stage of Growth (https://www.wealthenhancement.com/newsroom/wealth-enhancement-group-welcomes-equity-investment-from-onex-to-drive-next-stag)
- Mariner: Mariner Announces Strategic Partnership with Neuberger Berman Capital Solutions (https://marinerwealthadvisors.com/newsroom/2024/10/29/mariner-announces-strategic-partnership-with-neuberger-berman-capital-solutions)
- CAPTRUST: Carlyle Joins GTCR As Strategic Investor in CAPTRUST (https://www.captrust.com/carlyle-joins-gtcr-as-captrust-investor/)
- THL: THL Closes Secondary Transaction with Hightower (https://thl.com/articles/thl-closes-secondary-transaction-with-hightower/)
- Business Wire: CI Financial and Mubadala Capital Announce Completion of Take Private Transaction by Mubadala Capital (https://www.businesswire.com/news/home/20250812851536/en/ci-financial-and-mubadala-capital-announce-completion-of-take-private-transaction-by-mubadala-capital/)
- InvestmentNews: Mercer raises $1 billion in recapitalization deal, bringing in new private equity backer (https://investmentnews.com/mercer-raises-1-billion-in-recapitalization-deal-bringing-in-new-private-equity-backer-238431)
- WealthManagement.com: Mercer Advisors Rebrands to Reflect Its Position as National RIA (https://www.wealthmanagement.com/ria-news/mercer-advisors-rebrands-to-reflect-its-position-as-national-ria)
- Beacon Pointe: Beacon Pointe Announces Investment from KKR (https://beaconpointe.com/beacon-pointe-announces-investment-from-kkr/)
- Family Wealth Report: 2025 Was Another M&A Record For Wealth Sector: ECHELON Partners (https://www.familywealthreport.com/article.php/2025-Was-Another-M%26A-Record-For-Wealth-Sector-%E2%80%93-ECHELON--Partners?id=206930)
- InvestmentNews: Rising rates, falling revenue will dramatically change RIA M&A activity in 2023 (https://investmentnews.com/opinion/rising-rates-falling-revenue-will-dramatically-change-ria-ma-activity-in-2023/233549)
- RIA Intel: The Forces Boosting RIA Valuations and Driving a Dramatic Shift in Deal Structure (https://riaintel.com/article/b1ly8jp6sq9fj9/the-forces-boosting-ria-valuations-and-driving-a-dramatic-shift-in-deal-structure)
- Financial Planning: Culture Clash: Post-Merger, RIA and Private Bank Struggle to Integrate (https://financial-planning.com/news/culture-clash-post-merger-ria-and-private-bank-struggle-to-integrate)