10/20/2020
SACRAMENTO, CA and SAN FRANCISCO, CA – Parthenon Capital (“Parthenon”), a leading growth-oriented private equity firm, announced today it has signed a definitive agreement to sell its position in Allworth Financial (“Allworth” or the “Company”), a leading provider of comprehensive, planning-centric retirement and wealth management solutions to mass-affluent and high net worth clients. The transaction represents the culmination of a successful partnership with Allworth’s management team, led by Co-CEOs Scott Hanson and Pat McClain. Lightyear Capital LLC, a New York-based private equity firm focused on financial services, and Ontario Teachers’ Pension Plan Board, Canada’s largest single-professional pension plan, are leading the new investment in the Company while Allworth’s management team and advisors will retain a significant ownership position. The transaction is expected to close in the fourth quarter of 2020, subject to customary closing conditions.
“The Allworth team has made tremendous progress in our mission to build a national wealth management firm where clients can receive comprehensive, planning-centric retirement and wealth management advice regardless of where they live,” said Scott Hanson, Co-Founder and Co-CEO of Allworth. “Parthenon has been a fantastic partner, and we are appreciative of their strategic support of this mission over the past several years.”
Founded in 1993 and headquartered in Sacramento, CA, Allworth, has grown to approximately $10 billion in assets under management and currently serves over 13,000 households nationwide. The Company has completed 10 add-on acquisitions over the past three years, with two more anticipated to close prior to the end of the year. In addition, Allworth continues to invest in industry-leading technology and services in support of its best-in-class client experience and the firm’s education-centric approach to financial planning.
Allworth Co-Founder and Co-CEO Pat McClain added, “Three years ago, we partnered with Parthenon Capital because of their expertise in the wealth management sector, the functional resources they have on staff, and, most importantly, their aligned vision for what we could accomplish together. Fast forward to today, we have grown assets under management from less than $3 billion to approximately $10 billion, completed 10 acquisitions of like-minded firms, invested in our team and technology, and continue to offer best-in-class client service.”
Allworth has been recognized as a market leading firm by numerous industry publications including Barron’s “Top 50 RIA Firms” (2019) and the Financial Times “Top Financial Advisors” (2020, 2019). In addition, Allworth has received numerous awards for its culture and work-environment having been recognized as a 2020 “Best Place to Work for Financial Advisors” by InvestmentNews and a 2019 “Circle of Excellence Award” winner for both customer and employee satisfaction by National Business Research Institute.
Andrew Dodson, Managing Partner at Parthenon, said, “Partnering with Scott, Pat, Pete and the entire Allworth team has been a pleasure. We have thoroughly enjoyed working with everyone at the Company and are extraordinarily proud of what we have achieved together. We look forward to following their continued success.” Brian Golson, Managing Partner and Co-CEO at Parthenon, added, “Prior to investing in Allworth, Parthenon spent several years trying to find the ideal wealth management platform that fit our vision for the future of the industry. The Company accomplished a tremendous amount over the past three years, and we are confident that they are well positioned to continue their success far into the future. We wish the team all the best.”
Raymond James & Associates, Inc. and Moelis & Company LLC are serving as financial advisors to Allworth and Parthenon. Kirkland & Ellis LLP is acting as legal advisor for Allworth and Parthenon.
About Allworth Financial
With its direct and educational approach to advising, Allworth Financial is a full-service independent investment financial advisory firm that specializes in retirement planning, investment advising, tax planning & preparation, estate planning, and 401(k) management. Allworth delivers long and short-term investment planning solutions and guidance to help clients achieve their goals and plan strategically for retirement. For more information, visit www.allworthfinancial.com.
About Parthenon Capital
Parthenon Capital is a leading growth-oriented private equity firm with offices in Boston, San Francisco, and Austin. Parthenon utilizes niche industry expertise and a deep execution team to invest in growth companies in service and technology industries. Parthenon seeks to be an active and aligned partner to management, either through recapitalization transactions or by backing new executives. Parthenon has particular expertise in financial and insurance services, healthcare, and technology services, but seeks any service, technology or delivery business with a strong value proposition and proprietary know-how. For more information, visit www.parthenoncapital.com.