Wealth Capital firm, Constellation, plans to invest in Merit Financial through a minority share purchase.
In a significant move, alternative asset manager Constellation Wealth Capital (CWC) has agreed to take a minority stake in Merit Financial Advisors, an Atlanta-based RIA. This partnership is set to accelerate Merit's strategic initiatives, aiming to fuel its national expansion, enhance technology, and improve client services.
Last month, Merit Financial Advisors announced the acquisition of RCM Investments, marking its first office in Utah and adding $281 million in assets to its portfolio. With the strategic purpose of supporting Merit's continued expansion, CWC's investment will provide capital for Merit to scale its advisor platform, pursue further acquisitions, and boost advisor recruitment, practice management support, and client experience initiatives.
The deal with CWC is scheduled for completion in the third quarter of 2025, subject to customary closing conditions. The partnership replaces Merit's previous minority investors and is expected to accelerate its strategic initiatives without changing Merit’s independence, operations, or leadership structure. Merit intends to continue operating under its current name and maintain its culture.
In 2025, Merit Financial Advisors has completed eight acquisitions, bringing its total to 40 offices across the US and a workforce of over 300. The firm manages $19.94 billion in assets, including $14.06 billion in advisory, $2.6 billion in brokerage, and $3.28 billion in retirement plan and ESOP assets.
The strategic collaboration aligns with Merit Financial Advisors' goals to scale its advisor platform and expand its national presence. Goldman Sachs acted as the financial advisor to CWC in the deal with Merit Financial Advisors, while Ardea Partners, supported by William Blair, served as the lead financial advisor to Merit Financial Advisors. Legal counsel was provided to Merit Financial Advisors by Holland & Knight, and Kirkland & Ellis offered legal advice to CWC.
Merit Financial Advisors' CEO, Rick Kent, believes CWC is the right partner for Merit's next phase of growth due to their deep experience, cultural alignment, and long-term mindset. This investment marks a significant step forward for Merit Financial Advisors, setting the stage for continued growth and expansion.
In this strategic partnership, Constellation Wealth Capital's investment in Merit Financial Advisors will support enhanced wealth management through technology advancements and clients services, particularly in areas like AI and finance, facilitating investing and wealth management business. The partnership allows Merit Financial Advisors to increase capital for scaling its advisor platform, pursuing further acquisitions, and boosting advisor recruitment, practice management support, and client experience initiatives. This collaboration aligns with Merit Financial Advisors' objective of growing and expanding its national presence, with the ultimate goal of managing more assets and improving overall service quality.
