TPG in lead to buy stake in Creative Planning at $15 billion valuation, sources say
By Milana Vinn and David French
Sept 28 (Reuters) -Buyout firm TPG TPG.O has emerged as the frontrunner to pick up a minority stake worth $2 billion in Creative Planning, in a deal that could value the wealth management firm at more than $15 billion, people familiar with the matter said on Saturday.
The deal would mark TPG's second such bet on a wealth manager within a week and underscores the burgeoning demand for dealmaking in the sector that generates lucrative fee income for managers. On Thursday, TPG clinched a deal to buy a minority stake in Homrich Berg.
San Francisco-basedTPG is set to prevail in an auction for the stake in Creative Planning that drew interest from other buyout firms, including Permira,the sources said, requesting anonymity as the discussions are confidential. The deal could be announced in the coming days, the sources added.
If the talks are successful, TPG would become one of the owners in the wealth manager, alongside private equity firm General Atlantic which acquired a minority stake in Creative Planning in 2020.
TPG and Permira declined to comment. Creative Planning did not immediately respond to requests for comment.
Wealth managers have traditionally attracted robust interest from private equity firms who like to back companies that generate steady cash flows. The wealth management industry's fragmented nature also means companies can grow quickly through acquisitions of rivals.
Overland Park, Kansas-based Creative Planning offers services including financial and tax planning, retirement plans and financial consultancy for businesses, and managed more than $300 billion of assets at the end of 2023, according to its website.
Last year, Creative Planning agreed to buy the personal financial unit of Goldman Sachs GS.N, after the Wall Street bank undertook a strategic overhaul at its wealth management unit to focus on high net-worth individuals, following its exit from the consumer lending business.
Founded in 1992 by private equity executives Jim Coulter and David Bonderman, TPG had about $229 billion in assets under management as of the end of June, up 65% from a year earlier. The firm, which is currently led by Jon Winkelried, posted a 60% jump in fee-related income from managing assets in its most recent quarter.
Reporting by Milana Vinn and David French in New York; Editing by Anirban Sen and Chizu Nomiyama
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
