Osaic re-ups capital with $2B infusion from Reverence, Bain, Ares

Independent broker-dealer Osaic has secured a more than $2 billion recapitalization from its longtime private equity backer Reverence Capital Partners, along with a host of other investors including Bain Capital and an Ares Management subsidiary.

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The $2 billion will be used primarily to pay investors who invested in Osaic (formerly known as Advisor Group) when Reverence took a majority stake in the firm in 2019. The new capital will also be used to “help fund future growth initiatives,” according to a statement from Osaic and Reverence.

When Reverence Capital made its first investment in Osaic (then Advisor Group), the reported price tag was also about $2 billion. The firm at that time had $272 billion in client assets and roughly 7,000 advisors working under four different brokerage bands.

Those numbers have since increased to $747 billion in assets under administration and 10,000 financial advisors. Osaic has also gone through what it has deemed its “Journey to One” to consolidate nine different brokerages added through acquisitions under the Osaic brand, which was adopted in 2023. 

Milton Berlinski, the co-founder and managing partner of Reverence Capital, said in a statement that his firm’s new capital infusion “underscores our strong belief in Osaic’s strategy, vision and future.”

Osaic CEO on why advisor headcount isn’t everything 

Additional private equity partners come on boards

Alongside Reverence, Osaic’s financial supporters now include Bain Capital, a large investment firm that has similarly provided backing to the hybrid RIA-brokerage firm Carson Group. 

Osaic and Reverence also said they have set up a financing mechanism known as a “continuation vehicle,” on which the investment firms Ares Secondaries and Lexington Partners will be the lead investors.

“We are grateful to continue having Reverence Capital Partners with us on this journey and are thrilled to also have a new, strong group of leading investors who will provide capital to help fuel the next phase of our growth,” Osaic CEO Jamie Price said in a statement.