Key Takeaways
- • Audax Private Equity announced a strategic investment in Congress Wealth Management, a Boston-based independent RIA with over $5 billion in assets under management, in a transaction where CI Financial (TSX: CIX) is selling its stake.
- • Terms of the recapitalization were not disclosed.
- • Congress serves approximately 2,300 HNW and family office clients across seven U.S. offices and has completed six acquisitions since 2019.
- • The deal is the latest addition to Audax's Financial Services vertical, launched in 2021, following investments in Stout and Harbourfront Wealth Holdings.
- • Gladstone Associates advised on the transaction, with Kirkland & Ellis counseling Audax and ArentFox Schiff counseling the sellers.
Summary
Audax Private Equity, described by the firm as a leading alternative investment manager and capital partner to middle market companies, has made a strategic investment in Congress Wealth Management, a Boston-based, SEC-registered independent registered investment advisor. According to the announcement distributed via Business Wire, Audax is partnering with management to recapitalize Congress, with CI Financial (TSX: CIX) divesting its stake. Terms of the transaction were not disclosed.
Founded in 2009, Congress provides wealth management, financial planning, and investment advisory services to high-net-worth individuals, foundations, endowments, and family offices. The firm reports more than $5 billion in assets under management, seven offices across the U.S., and approximately 2,300 HNW and family office clients. Congress has grown through new client acquisition and six acquisitions completed since 2019, and it positions itself on a client-first, fully integrated approach to financial planning.
Paul Lonergan, Founder and CEO of Congress, said the partnership positions the firm to scale its offering and expand into new geographies and existing markets. Bill Allen, Managing Director at Audax, cited the fragmented and evolving wealth management landscape and said independent RIAs continue to attract clients, describing Congress as a compelling platform for accelerated growth. Scott Dell'Orfano, Chief Strategic Officer at Congress, said the partnership will support both organic and inorganic growth by combining Congress's pipeline and relationships with Audax's Buy & Build approach. Adam Abramson, a Partner at Audax, praised the firm's company-wide culture of partnership.
The investment will join Audax Private Equity's Financial Services vertical, one of six core industry specializations within its Flagship fund. Audax launched the vertical in 2021, and the Congress deal follows its recent investments in financial advisory firm Stout and Canadian wealth manager Harbourfront Wealth Holdings. Since its 1999 founding, Audax Private Equity reports more than 160 platform investments and 1,200 add-on acquisitions, with approximately $16 billion in assets under management. Audax Group, of which the private equity arm is part, manages approximately $36 billion. Gladstone Associates, LLC advised on the transaction, Kirkland & Ellis, LLP acted as counsel to Audax, and ArentFox Schiff represented the sellers.
Founded in 2009, Congress provides wealth management, financial planning, and investment advisory services to high-net-worth individuals, foundations, endowments, and family offices. The firm reports more than $5 billion in assets under management, seven offices across the U.S., and approximately 2,300 HNW and family office clients. Congress has grown through new client acquisition and six acquisitions completed since 2019, and it positions itself on a client-first, fully integrated approach to financial planning.
Paul Lonergan, Founder and CEO of Congress, said the partnership positions the firm to scale its offering and expand into new geographies and existing markets. Bill Allen, Managing Director at Audax, cited the fragmented and evolving wealth management landscape and said independent RIAs continue to attract clients, describing Congress as a compelling platform for accelerated growth. Scott Dell'Orfano, Chief Strategic Officer at Congress, said the partnership will support both organic and inorganic growth by combining Congress's pipeline and relationships with Audax's Buy & Build approach. Adam Abramson, a Partner at Audax, praised the firm's company-wide culture of partnership.
The investment will join Audax Private Equity's Financial Services vertical, one of six core industry specializations within its Flagship fund. Audax launched the vertical in 2021, and the Congress deal follows its recent investments in financial advisory firm Stout and Canadian wealth manager Harbourfront Wealth Holdings. Since its 1999 founding, Audax Private Equity reports more than 160 platform investments and 1,200 add-on acquisitions, with approximately $16 billion in assets under management. Audax Group, of which the private equity arm is part, manages approximately $36 billion. Gladstone Associates, LLC advised on the transaction, Kirkland & Ellis, LLP acted as counsel to Audax, and ArentFox Schiff represented the sellers.
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