Key Takeaways
- • Prime Capital Financial has grown from about $2.5 billion in AUM at its January 2018 launch to $52 billion today, with 95% of AUM managed by advisors who hold equity in the firm, according to CEO Glenn Spencer.
- • Carlyle has taken a minority stake of roughly 24-25% in a recapitalization completed in August, succeeding Abry Partners, which exited its investment; advisors and employees hold roughly 75% of equity.
- • The firm has 170 partner-owners, up from 75 after a 2021 equity distribution to 70 additional advisors, and it says its dispersed cap table lets it provide shareholder liquidity without a controlled sale.
- • Prime targets doubling its value every four to five years, which management says requires roughly 25% annual growth through about three or four acquisitions, recruiting 12 to 15 advisors, and organic growth near 10%.
- • Ares leads Prime's credit facility, which includes a term loan B, a delayed-draw term loan and a revolver, and Carlyle has committed to additional equity if needed.
Summary
Prime Capital Financial traces its roots to Lawing Financial, a life insurance business dating to the 1980s that added advisors in 1997 and formed one of the first registered investment advisors in Kansas that year. In 2017, a group of advisors led by CEO Glenn Spencer bought the company from Kerry Lawing, and the firm launched as Prime Capital Financial in January 2018 with about $2.5 billion in AUM. According to Spencer, the firm has since completed about 30 acquisitions, recruited hundreds of advisors, and grown from 40 advisors to 225, reaching $52 billion in AUM.
According to Wealth Management, which interviewed Spencer and President Scott Duba, the firm's ownership model was intended from the outset to be advisor-owned, modeled on partnership structures at professional services firms. Equity was distributed to 70 additional advisors in 2021, bringing owners to 75; the firm now has 170 partner-owners. Carlyle holds about 25% following its recent recapitalization, and a passive family office investor also holds equity. Spencer said that any advisor joining with a significant book of business is required to become an equity holder. Duba said nearly all advisors own equity and that this alignment was a key factor in attracting Carlyle.
Prime's capital history includes a 2019 transaction in which it exchanged equity for debt, retiring its acquisition borrowings, with LNC Partners as the first equity investor. Abry Partners replaced LNC in 2023 and has now exited. Spencer described the dispersed ownership as enabling liquidity without a controlled transaction, noting that about 85% of owners took some liquidity when Carlyle invested. Duba described the Ares-led credit facility as similar to typical private equity senior facilities.
Management outlined growth priorities of acquisitions, recruiting, and organic growth, and said the firm has about $2.5 billion in alternative investments and roughly 20% of revenue from ancillary services such as tax advisory, trust and estate services, a multi-family office, banking, and institutional consulting. Spencer said he would not rule out a future majority outside stake, though he could not foresee outside capital reaching 90%. Duba is slated to succeed Spencer under the firm's succession plan, following his appointment as president in January.
According to Wealth Management, which interviewed Spencer and President Scott Duba, the firm's ownership model was intended from the outset to be advisor-owned, modeled on partnership structures at professional services firms. Equity was distributed to 70 additional advisors in 2021, bringing owners to 75; the firm now has 170 partner-owners. Carlyle holds about 25% following its recent recapitalization, and a passive family office investor also holds equity. Spencer said that any advisor joining with a significant book of business is required to become an equity holder. Duba said nearly all advisors own equity and that this alignment was a key factor in attracting Carlyle.
Prime's capital history includes a 2019 transaction in which it exchanged equity for debt, retiring its acquisition borrowings, with LNC Partners as the first equity investor. Abry Partners replaced LNC in 2023 and has now exited. Spencer described the dispersed ownership as enabling liquidity without a controlled transaction, noting that about 85% of owners took some liquidity when Carlyle invested. Duba described the Ares-led credit facility as similar to typical private equity senior facilities.
Management outlined growth priorities of acquisitions, recruiting, and organic growth, and said the firm has about $2.5 billion in alternative investments and roughly 20% of revenue from ancillary services such as tax advisory, trust and estate services, a multi-family office, banking, and institutional consulting. Spencer said he would not rule out a future majority outside stake, though he could not foresee outside capital reaching 90%. Duba is slated to succeed Spencer under the firm's succession plan, following his appointment as president in January.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.