How Merchant snagged a stake in $3.1bn RIA Corient
Corient Capital Partners, a $3.1bn RIA based in Newport Beach, California, did its homework before signing on the dotted line.
‘We explored a bunch of different options,’ Corient chief executive James Rooney said. ‘We looked at private equity as a potential solution. We looked at other debt recapitalization options.’
Dynasty Financial Partners launched Corient in 2015 when seven ex-Merrill Lynch private banking and investing group advisors exited the wirehouse. However, Dynasty does not take equity stakes in the RIAs that make up its nationwide network.
If an RIA so desired, it could use Merchant’s services for virtually all aspects of its business, including lending. Merchant launched its own credit business in 2019.
‘I see [the Corient deal] as emblematic of the evolution that’s taking place in the wealth management industry,’ said Merchant executive chairman Marc Spilker, the former president of Apollo Global Management. ‘Businesses are aligning with an ecosystem of independent wealth firms and service providers that collectively offer full access to the most advanced industry tools and solutions.’