Southwestern Investment Group, a $5.8 billion registered investment adviser based in Franklin, Tennessee, has taken theĀ plunge into a private equity partnershipĀ by selling a minority stake to Merchant Investment Management.
Like virtually all RIAs succumbing to the lure of PE capital, SWIG Chief Executive Jeff Dobyns said the move was about building scale in aĀ fast-consolidating wealth management industry.
āIn our search for growth partners, Merchant stood out with its deep, practical understanding of capital structure and a team of experts that truly understands how financial advisers serve their clients and thrive as businesses,ā Dobyns said inĀ a statement.
āMerchantās flexibility in approach to equity and debt capital and willingness to go the distance with us has been one-of-a-kind,ā Dobyns said.
Private equity investors have beenĀ flooding into the wealth managementĀ space with increasing momentum over the past several years, and Merchant has emerged as one of the higher-profile PE players ever sinceĀ Matt Brinker joined as a managing partner a year ago.
āWe jumped into this partnership with Jeff and the team because they are building an advisory firm that can sustain for decades to come,ā Brinker said in the statement.
