PE Firms Invest In $9 Billion Utah RIA

Estancia Capital Partners, LLR Partners To Buy About 60% Of Soltis Investment Advisors
Brent D. Moore, Managing Partner, and Kim D. Anderson, CEO and President, Soltis Investment Advisors
Brent D. Moore, Managing Partner, and Kim D. Anderson, CEO and President, Soltis Investment Advisors
Jeff Berman, Contributing Editor & Reporter, Wealth Solutions Report
Jeff Berman, Contributing Editor & Reporter, Wealth Solutions Report

Private equity (PE) firms Estancia Capital Partners and LLR Partners have entered into an agreement with Soltis Investment Advisors, a Utah-based RIA managing or providing advisement on over $9 billion of client assets, to invest in the advisory firm and help support its next growth phase, the companies said Thursday.

“Estancia and LLR will be purchasing around 60% of the firm,” Brent D. Moore, Managing Partner of Soltis, told Wealth Solutions Report by email. “The agreements have been completed and final closing should occur within 45-60 days,” he said.

How much the PE firms will be paying was not disclosed.

The agreement will help provide Soltis with an “infusion of growth capital, as well as additional value creation resources and expertise to support the firm in delivering comprehensive wealth management and retirement plan services,” according to the press release.

The investment was also designed to help Soltis selectively grow its team of financial advisors and also “explore potential acquisitions and enhance service offerings,” according to the release.

Soltis has served clients across the U.S. from its St. George, Utah, headquarters since 1993 and expanded to Salt Lake City in 2015.

Over the past five years, the advisory firm’s growth led to the openings of additional offices in Boston; Dallas; Novi, Michigan; Phoenix; and Seattle.

Along with wealth management and financial services to individuals, high net worth clients and family offices, Soltis serves as a plan fiduciary under ERISA 3(21) and 3(38) for retirement plan clients, endowments and foundations.

“We’ve spent the last year evaluating our next phase of expansion and who our new institutional partner should be to help fuel growth in a competitive, financially secure way,” according to Kim D. Anderson, Soltis CEO and President.

“Our chosen partner had to share our vision for growth and help us expand our capabilities,” Anderson said. “We identified Estancia and LLR as the ideal fit.”

Dana Alan Kurttila, Managing Director, Estancia Capital Partners
Dana Alan Kurttila, Managing Director, Estancia Capital Partners

He added: “As we expand our brand nationwide, this strategic partnership will help to augment our expertise and the services we offer our clients. We’ll have the capital to continue to expand our company ownership to additional partners and employees. We’ll also benefit from added compliance oversight and advisement, and from Estancia and LLR’s expanded knowledge of best practices they’ve observed throughout the industry.”

The Soltis management team will continue in their current roles and all current partners will retain ownership interests, with the new capital partnership helping to offer broader ownership opportunities for Soltis employees and capital to support growth initiatives, according to the press release.

“The continuing ownership by current partners and the addition of new partners in the future will better align our leadership team, motivate our entire firm to maintain our culture and values, and enhance client engagement,” according to Anderson.

“The wealth management industry in the U.S. is large and fragmented with many firms,” said Dana Alan Kurttila, Managing Director of Estancia. “Soltis represents the upper echelon of these firms, in terms of its collegial culture, dedicated advisor teams, and highly satisfied clients. This has led to Soltis advisors attracting a growing number of clients at an industry-leading pace.”

Sam Ryder, Principal, LLR Partners
Sam Ryder, Principal, LLR Partners

“The RIA industry is at an exciting inflection point that presents firms like Soltis with the opportunity to accelerate growth both organically and through acquisitions,” according to Sam Ryder, Principal at LLR Partners.

“Soltis is a unique RIA platform with a highly talented team that we believe is well positioned to continue to capitalize on industry tailwinds in favor of the independent RIA offering,” Ryder said.

As a result of the new agreement, Emigrant Partners will “exit its investment in Soltis,” the release said.

“As a Strategic Investor since 2010, Emigrant has provided capital and resources to assist Soltis in progressing to achieve our long-term objectives to deliver world class service to our clients and growth opportunities for our entire team,” said Hal G. Anderson, a Founder of Soltis and its Chairman.

Soltis was advised by Moelis & Company and Alston & Bird. Estancia was advised by Ardea Partners and Dechert, and LLR was advised by William Blair and Company and Goodwin Procter.

Jeff Berman, Contributing Editor & Reporter at Wealth Solutions Report, can be reached at jberman@wealthsolutionsreport.com.

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