In a significant move within the financial advisory industry, RIABiz reports that private equity firm Rise Growth Partners has made its first capital placement by acquiring a minority stake in Bleakley Financial Group, a rapidly growing RIA based in Fairfield, New Jersey. This investment marks a strategic shift for both firms, aiming to expand Bleakley's presence beyond its strongholds in the Northeast and Midwest.

For the private equity firm, the deal is different because Rise Growth Partners, launched in September 2023 with a $250 million commitment from Charlesbank Capital Partners, initially planned to acquire 30 percent stakes in RIAs with $750 million to $5 billion in assets under management. However, the deal with Bleakley, with $10 billion in AUM, reflects a strategic pivot, focusing on fewer, larger investments to build a stronger national brand.

RIABiz reports that, for Bleakley, the deal is attractive as the firm seeks to regain its competitive edge, particularly in attracting top talent. Despite its steady growth and success as Northwestern Mutual's largest wealth management practice before breaking away in 2015, Bleakley faced challenges in competing with larger firms that could offer equity in recruitment packages. The Rise investment provides Bleakley with the resources to introduce firm equity as a recruiting tool, significantly enhancing its attractiveness to high-producing advisors.

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