The move follows a number of cases where US private equity money is being used to invest in wealth management on this side of the pond.
Parthenon will work with Titan Wealth to support growth in the business, including investment in technology and client service, enhancing Titan’s ability to deliver integrated investment and platform services through its client to custody strategy, the firm said in a statement.
This investment, which is subject to approval from the UK’s Financial Conduct Authority, also provides access to additional capital to support future M&A.
On completion, Parthenon will become the majority shareholder in Titan, which represents its first platform investment in the UK. Existing Titan Wealth investors, Ares, Hambleden Capital and Maven Capital Partners will remain invested and committed to the business, the firm continued.
With rising valuations of US wealth managers, as a result of a number of mergers and acquisitions, US private equity firms are increasingly looking at the UK/European market for deals.
Andrew Fearon, joint CEO and head of M&A at Titan Wealth, said: “Parthenon is a standout investor and we look forward to working with them.”
James Kaberry, joint CEO and executive chairman at Titan Wealth, added: “Andrew and I are very proud of what our team has accomplished in a short period of time. Parthenon has deep financial services expertise and, with their support, we will continue to provide innovative, industry-leading solutions to the wealth management sector.”
Andrew Dodson, managing partner at Parthenon Capital, said: “Titan Wealth is an outstanding business to partner with for our first platform investment in the UK. The management team has demonstrated a strong track record of growth and their vertically integrated, client-to-custody strategy is differentiated from other players in the wealth management sector.”
Anthony Orazio, partner at Parthenon Capital, added: “As longstanding investors in the US wealth market, we have been working for several years to identify a distinctive UK wealth platform to partner with. We are excited to leverage our industry expertise and resources to accelerate investments and build upon Titan Wealth’s success to date.”
Parthenon is a private equity firm, with offices in Boston, San Francisco, and Austin, and a track record of partnering with management teams to build franchise companies in the wealth management sector.
Titan Wealth was advised by Myles Phillips, Continuum Advisory Partners, Ross Allardice, White & Case and James Dingwall. Thistle Initiatives Limited provided regulatory compliance advice, Kirkland & Ellis LLP served as legal counsel and Evercore acted as financial advisor to Parthenon.
UK-based Titan is a fund management / wealth and asset management business, targeting £50 billion ($61 billion) in assets under administration over the next three to five years and assets under management of £40 billion.