Under an agreement announced between the Onex Corporation’s private equity arm and TA Associates, RIA consolidator Wealth Enhancement Group’s current majority owner is selling part of its stake in the Minneapolis-based firm.

Onex and TA Associates, which purchased Wealth Enhancement two years ago from another PE firm, will be “equal capital partners” in Wealth Enhancement, according to a press release. The RIA has topped $40bn in client assets this year after acquiring 10 different RIAs. The parties didn’t disclose any additional details about the deal, which is expected to close by the end of the year.

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A company that became part of Onex’s financial services portfolio last year, OneDigital, announced five M&A deals in the second quarter, the largest number in the wealth management industry, according to investment bank and consulting firm Echelon Partners. Wealth Enhancement was second with four deals announced. Onex Partners V and certain Onex co-investors, including the parent company itself, will join TA Associates as the owners of Wealth Enhancement, which also has about 200 employees that have equity in the firm, according to CEO Jeff Dekko. Wealth Enhancement, which uses LPL Financial as its broker-dealer, has had “financial partners dating all the way back to the 2000s,” Dekko said in an interview.

 Source: Financial Planning 

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