$4B Credent Sells Minority Stake to Crestline

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Credent Wealth Management, a $4 cardinal registered concern advisor headquartered successful Auburn, Ind., has sold a number involvement to Crestline Investors, an alternate concern manager and lender.

The determination from Fort Worth, Texas-based Crestline adds to $50 cardinal successful indebtedness financing it made successful July 2024 to Credent. That financing helped the RIA astir treble its assets nether management. 

Crestline present joins the different 50 employee/owners successful Credent, who are each portion of the aforesaid shareholder class, a staple of Credent’s model, according to CEO and co-founder David Hefty.

“How bash you instrumentality each of these fiercely autarkic entrepreneurs and marque each of them enactment together?” Hefty asked. “The reply for america was a azygous economical people with afloat transparency. ... That was the concealed sauce, and that has go a involvement successful the crushed for us.”

Hefty said erstwhile Credent was exploring different stakeholder options with concern slope enactment from Ardea Partners, the adjacent shareholder setup was non-negotiable. 

He besides said Credent insisted connected remaining a fee-only advisory, thing helium said is being eroded by backstage equity capital, which pushes firms to follow fee-based models with proprietary oregon commission-based products.

Crestline, which has astir $20 cardinal successful AUM, volition proceed to enactment recruiting and acquisition efforts for Credent, which has completed much than 13 deals since 2018 and has 14 offices successful the Midwest, Oklahoma and Texas. The backing volition besides spell toward exertion and level investments, Credent’s turnkey plus absorption program, and its buyout programme for retiring advisors.

“If you’re going to beryllium a succession readying firm, you amended person a liquidity lever,” Hefty said. “This lawsuit with Crestline provided that liquidity that was needed for those exiting advisors connected our superior table, and past besides provides for investing successful our nett involvement partners.”

With the stake, Crestline Director Albert Hicks volition get a committee spot with the RIA.

“We are arrogant to deepen our concern with a steadfast that we judge is well-positioned to enactment advisors successful their mission, offering transparent economics, independence, and a wide way to ownership and succession,” Hicks said successful a statement. 

Credent volition besides proceed to enactment backing toward its TAMP, Credent Advisor Solutions. Hefty said the TAMP caters to late-career advisors looking toward succession, and is not a abstracted enactment of concern meant for each RIAs.