The Pritzker Organization (TPO), a merchant bank representing the business interests of the Tom Pritzker family, has closed on a $100 million minority growth investment in Steward Partners Global Advisory LLC, an independent wealth management firm headquartered in Washington, D.C., the companies announced in a news release.
“The Pritzker family's "buy to build" strategy is the opposite of the typical private equity "buy to sell" mentality,” Steward Partners CEO Jim Gold said in the news release. “Their permanent capital base gives The Pritzker Organization the ability to invest for long-term appreciation."
Steward Partners is one of the country's fastest growing independent wealth management firms, with 170 advisors in 27 offices managing $23 billion in client assets nationwide. TPO’s minority investment will reportedly give Steward Partners additional capital to expand into new markets, while giving TPO two seats on Steward Partner’s independent Board of Directors.
TPO principal Jason Sussman said in the news release that his organization had been studying the wealth management industry for several years before deciding to invest in Steward.
“We selected Steward Partners because they align perfectly with our mission of finding great partners to grow and build businesses alongside,” he said. "Steward Partners has an impressive management team, and we were particularly impressed with their ability to drive and manage their growth."
Over the past 60 years, TPO has invested in over 200 firms representing $30 billion in equity value, the news release said. Its minority investment in Steward Partners is only the second time the firm has accepted outside capital.
The Cynosure Group, a Salt Lake City-based private investment firm serving families and foundations, made a $50 million investment in Steward Partners in March of 2019, and will remain fully invested.
The Pritzker Organization worked with advisory partner Scott Roulston on the investment, and received legal advice from Latham and Watkins. Goldman Sachs & Co. LLC acted as exclusive financial advisor to Steward in connection with the transaction, and Goodwin Procter provided legal advice.
