The story, assuming that it is confirmed, is yet another sign of the heavy involvement of private equity money in the North American wealth management consolidation story.

Private equity big hitters Bain Capital and Carlyle are battling to win a takeover of US-based Wealth Enhancement in a deal that would be valued at $7 billion, according to the Financial Times at the weekend. 

Assuming that there is an agreement at the end of any bidding contest, it would represent another turn on the M&A theme that has been present in the North American wealth sector in recent years – as analyzed here. And it also underscores the importance of private equity as a motor of such transactions.

Wealth Enhancement was founded over 25 years ago and has more than $100 billion in assets under management. It is headquartered in Plymouth, Minnesota, and its CEO is Jeff Dekko.

The firm has itself grown via M&A – and organically. In May, Wealth Enhancement acquired Wisdom Rock Financial Advisory Group, adding more than $500 million in client assets to Steward Partners' platform in its M&A channel. In the same month, it acquired $318 AuM firm Lake Tahoe Wealth Management.

Family Wealth Report has contacted Wealth Enhancement, Carlyle and Bain for comment and may update in due course. The firms had not responded at the time of going to press.