By David French and Milana Vinn
(Reuters) – Private equity firm TPG has agreed to buy a minority stake in Homrich Berg, an investment that would allow the asset management firm to pursue growth opportunities, the companies said on Thursday.
No financial terms were given in their statement, which confirmed a Reuters report earlier in the day in which sources familiar with the matter said TPG’s investment valued Homrich Berg at around $1 billion.
Homrich Berg’s management team will retain control of the company in the wake of the TPG deal, with private equity firm New Mountain Capital also a minority investor.
The investment by TPG Growth, the buyout firm’s mid-market and growth equity platform, will enable Homrich Berg to expand its capabilities, attract top talent and improve its customer service, the statement said.
Asset managers have traditionally attracted a lot of interest from private equity investors, who like to bet on companies that generate stable cash flows. The fragmented nature of the asset management industry also means that platforms can often scale quickly through subsequent acquisitions of rivals.
Atlanta-based Homrich Berg is an independent financial advisor and asset management firm with offices in Georgia, Florida, South Carolina and Tennessee, and a top-50 registered investment advisor in the United States, according to its website.
It manages more than $18 billion in assets, the statement said. New Mountain invested in Homrich Berg in 2021.
