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  • Seller
  • Buyer
  • Type
  • Date Announced
  • Seller AUM
  • WealthTrust, Inc.
  • Circle Peak Capital, LLC
  • Wealth Management Firms
  • November 13, 2006
  • $6.5 Billion

Seller Details

WealthTrust, Inc. is a Nashville, TN strategic financial partner for U.S.-based investment counseling firms which provide comprehensive wealth management services to select families, individuals and public and private entities. WealthTrust currently has ownership interests in ten affiliated firms on a national basis, and collectively manages more than $6.5 billion in assets. WealthTrust strengthens its affiliates by providing support and expertise in the areas of compliance, back office support, technology, operations, and client services, augmenting investment advisors' ability to focus on client-related objectives.

Buyer Details

Circle Peak Capital LLC is a private equity investment firm based in New York, NY founded in 2002, that invests in or acquires established small- and mid-sized private companies in the consumer and asset management sectors, with a focus on building brands and sustainable competitive advantages. Circle Peak's principals and advisors are experienced in acquiring, managing and building companies between $25 million and $500 million in sales. Circle Peak's existing investment portfolio includes Luxury Optical Holdings LLC, Shari 's Restaurants Management Corp, and Hill & Valley LLC. Circle Peak is dedicated to partnering with proven management, building profitable businesses, and realizing significant returns on capital for its principals, management teams and investors.

Transaction Summary

Circle Peak Capital LLC acquired and recapitalized WealthTrust, Inc., a subsidiary of Morgan Keegan & Co. and Regions Financial Corporation. Circle Peak Capital partnered with management in the transaction, and junior capital provider Falcon Investment Advisors, LLC, based in Boston, MA and New York, NY, a leading private investment firm that manages in excess of $650 million. Terms of the deal were not disclosed. Circle Peak believes "the WealthTrust model of offering attentive service and customized solutions tailored to clients' evolving financial needs is a compelling strategy in today's competitive marketplace" and its "experienced management team has demonstrated tremendous success in identifying, supporting, and growing affiliate relationships -- key building blocks for profitable and aggressive future expansion."

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