Reverence to Take Stake in $16B RIA SEIA

What You Need to Know

Reverence Capital Partners — a PE firm and the parent company of Advisor Group — is planning to take an unspecified equity stake in Signature Estate & Investment Advisors, a Los Angeles-based RIA.
Advisor Group also says it will make an unspecified investment to support SEIA’s growth.
The companies say the deal will help SEIA advisors offer RIA and BD services to clients via a unified wealth management platform.

Reverence Capital Partners — the private-equity firm that owns 75% of Advisor Group — is planning to take an unspecified equity stake in Signature Estate & Investment Advisors, a Los Angeles-based RIA that manages over $16 billion in client assets, the companies said Wednesday.

In connection with the recapitalization, SEIA will work with the newly formed broker-dealer Signature Estate Securities.

The equity investment from Reverence is “part of SEIA’s long-term growth and continuity strategy,” according to the companies. The Reverence partnership, meanwhile, “will provide the capital to enable SEIA to invest in the business while continuing to enhance the level of service and product offerings the firm provides,” they added.

Following the close of the transactions, Brian Holmes will remain the CEO and president of SEIA and SIA. The firm’s founding partners, management team, advisor teams and employees will all “remain in place, and the brand will remain Signature Estate & Investment Advisors,” SEIA said.

At closing, SEIA will have broader equity ownership across its partners, advisors and employees than it did before the transactions, the companies said — with advisors maintaining full ownership of their practices.

The deal will help enable SEIA advisors to offer RIA and BD services to clients via a unified wealth management platform and “will result in greater access to alternative investments, elevated client-facing technology, and more comprehensive family office services,” the companies said.

In addition to Los Angeles, SEIA has four other locations in California — in Newport Beach, Pasadena, Redondo Beach and San Mateo — as well as offices in Beaverton, Oregon; Denver; Houston; and Tysons Corner, Virginia.

Meanwhile, SEIA’s turnkey asset management platform, Signature Investment Advisors, will now be available to advisors across the independent BD and RIA community, the firms noted.