Private equity firm TPG is leading the race to acquire a minority stake in wealth management company Creative Planning, valued at over $15 billion, according to sources. The potential $2 billion deal would be TPG’s second major investment in a wealth manager in just a week, following its purchase of a minority stake in Homrich Berg.
The acquisition highlights the growing demand for wealth management firms, which generate steady fee income and are attractive targets for private equity. Creative Planning, based in Overland Park, Kansas, offers financial services, including tax planning and retirement solutions, and managed over $300 billion in assets as of 2023. It also expanded last year by purchasing the personal financial unit of Goldman Sachs.
If completed, TPG would join General Atlantic, which has held a minority stake in Creative Planning since 2020. The deal could be finalized in the coming days, with TPG emerging as the winner in an auction that included rival firm Permira. TPG, founded in 1992, currently manages $229 billion in assets, and recently reported a 60% rise in fee-related income.