TPG buys minority stake in wealth manager Homrich Berg

By David French and Milana Vinn

(Reuters) -Private equity firm TPG has agreed to buy a minority stake in Homrich Berg, an investment that would allow the wealth management firm to pursue growth opportunities, the companies said on Thursday.

No financial terms were given in their statement, which confirmed a Reuters report earlier in the day in which sources familiar with the matter said TPG’s investment valued Homrich Berg at around $1 billion.

Homrich Berg’s management team will retain control of the business in the wake of the TPG deal, with private equity firm New Mountain Capital also a minority investor.

The investment by TPG Growth, the buyout firm’s middle market and growth equity platform, will enable Homrich Berg to expand its capabilities, attract top-tier talent, and enhance its client services, the statement said.

Wealth managers have traditionally attracted strong interest from private equity investors, who like to bet on companies that generate steady cash flows. The wealth management industry’s fragmented nature also means platforms can often be scaled quickly through subsequent acquisitions of rivals.

Atlanta-based Homrich Berg is an independent financial adviser and wealth management firm with offices in Georgia, Florida, South Carolina and Tennessee, and a top-50 registered investment adviser in the United States, according to its website.

It manages more than $18 billion of assets, the statement said. New Mountain invested in Homrich Berg in 2021.