Carlyle acquires MAI Capital Management

Carlyle has struck a deal to acquire a majority stake in MAI Capital Management, a Cleveland-based registered investment advisor (RIA), valuing the firm at over $2.8 billion. Funds managed by Carlyle will gain control, while current minority owners Galway Holdings, Oak Hill Capital, and Harvest Partners will exit their positions. The deal is set to close in the second quarter of the year, underpinning Carlyle's continued expansion into the wealth management sector.

Originally, Carlyle backed MAI in 2021 through an investment in Galway Holdings, which had acquired MAI. Under the terms of the new transaction, Carlyle becomes the majority stakeholder, seeking to leverage its resources to enhance MAI's service offerings, capabilities, and client experience. Despite this ownership change, MAI will maintain its brand, leadership, and strategic direction, and its employees will retain a significant minority ownership stake.

Rick Buoncore, CEO and Chairman of MAI, emphasized the alignment with Carlyle's culture as a pivotal factor in the decision. He stated that deepening its partnership with Carlyle will enable MAI to augment its resources while sustaining its mission as a top choice for clients and fiduciary-minded advisors. Carlyle’s Jim Burr and Jitij Dwivedi pointed to the scalable advisor-led platforms and holistic wealth management models as ongoing industry trends favoring such expansions. They anticipate that MAI will benefit from these trends and further solidify its market position.

The acquisition underscores the heightened interest in registering investment advisors within the financial services space, where industry tailwinds continue to favor well-integrated and scaled platforms. With 40 offices and assets under management of $50.9 billion as of January, MAI is poised to leverage Carlyle's industry insights and financial backing for further growth. The firm's acquisition of LA-based Evoke Advisors last year, which added $16.1 billion in assets, illustrates its strategic intent to expand its footprint.

Moving forward, the deal's closure will depend on satisfying customary regulatory approvals, and completion is anticipated in the coming months. As Carlyle assumes the helm, the focus will remain on enhancing value through strategic investments in MAI's infrastructure and resources without disrupting existing client relationships and service agreements.