American registered investment advisors (RIAs) Miracle Mile Advisors and Karp Capital Management have signed a merger deal with an aim to create a national wealth advisory firm with more than $4bn in assets under management.
The financial terms of the deal were not disclosed.
The combined entity will be backed by private equity firm Corsair Capital through a significant investment.
Based in the San Francisco Bay area, Karp Capital Management is a wealth management firm. Founded in 2004, the company offers investment advice, financial planning, and retirement services to business owners and high-net-worth individuals.
With specific expertise in the automotive sector, Karp Capital Management manages more than $1.2bn in client assets.
Karp Capital founder Peter Karp said: “Miracle Mile and Karp Capital coming together is a unique partnership. We share a strong cultural alignment and dedication to providing clients with highly customised, fiduciary advice.
“Our focus on providing wealth management services to the automotive, RV, and powersports spaces complement Miracle Mile’s broad foundation in advanced financial planning and wealth advisory services.”
Miracle Mile Advisors, which was founded in 2007, is a Los Angeles-based wealth advisor.
The RIA caters to high-net-worth families, individuals, business owners, and institutions with financial planning and custom investment management services.
Miracle Mile Advisors managing partner Duncan Rolph said: “We are fortunate to have developed an amazing culture and growth track record that has attracted some of the best and brightest advisory teams in the industry, and the addition of Karp Capital is a perfect example.
“As we scale the combined firm and enhance the service offering to our clients, we have found an incredible partner in Corsair. Their deep industry expertise and network will be instrumental in our future success.
“With our combined capabilities, we believe we can offer a differentiated partnership, culture, and set of resources to other wealth management firms looking to grow and thrive.”
The merger deal and subsequent investment from Corsair Capital are anticipated to be completed in November 2022, and are subject to customary conditions.