Summit Partners Seeks Exit from $20 Billion RWA Wealth Partners Stake Amid Shifts in Asset Management
Investment firm Summit Partners now seeks a chance to sell its share in RWA Wealth Partners. This registered investment advisor manages about $19.7 billion in assets. Sources say the step fits a trend by private equity in wealth management.
Background on RWA Wealth Partners
RWA Wealth Partners formed when two well-known RIAs joined. Summit Partners first bought a leading part of Adviser Investments in late 2020 in Newtown, Massachusetts. Adviser Investments then grew by buying Ropes Wealth Advisors in 2023. After the two combined, the group took on the name RWA Wealth Partners. The firm works in states such as Massachusetts, California, Florida, Michigan, and Illinois. It handles private wealth and family office work. Michelle Knight, who led Ropes Wealth Advisors as president and chief economist, now runs the firm.
The Sale Process Underway
Summit Partners hired Raymond James to check out possible buyers. Talks have included a range of firms, from other private equity groups to large financial companies. Neither Summit Partners nor RWA Wealth Partners has made any public comment. Public records show that several Summit funds still hold parts of the original 2020 deal. Founders and partners of RWA Wealth also own shares that came after the merge.
Market Context: Private Equity Activity in Wealth Management
This move comes as many private equity firms choose to sell investments made in the past few years. Many investments in the RIA area, dating from 2019 and early 2020, now have grown large. For example, Canadian firm Onex Partners sold its stake in RIA OneDigital, while Aquiline Partners gave up control of SageView Advisory Group in a deal with Creative Planning. This trend ties market shifts to a rise in mergers among RIAs. RWA Wealth Partners itself grew when it bought a San Francisco-based RIA in August.
Summit Partners’ Broader Investment Focus
Based in Boston, Summit Partners works with companies in many areas. Its portfolio covers consumer services, technology, healthcare, and life sciences. In financial services, the firm has a history with both wealth management and wealthtech. It helped Focus Financial Partners in its early stage and now owns a part of VestMark, a provider of wealthtech solutions.
The Road Ahead
Summit Partners hopes that selling its large share in RWA Wealth Partners will change trends in market consolidations. The sale may set a mark for how similar RIA platforms are valued. A good result here might lead to further moves in the RIA space, which has seen steady asset growth and more demand for planned wealth services.
Alex Ortolani is a senior reporter with WealthManagement.com, who covers deals, staff moves, and shifts in the Registered Investment Advisor sector.
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