MINNEAPOLIS and TORONTO, Aug. 24,
2021 /CNW/ -- Wealth Enhancement Group (WEG), an independent
wealth management firm with nearly $40.2
billion in client assets*, and Onex Corporation (TSX: ONEX),
an investment firm and asset manager, today announced a new equity
investment from Onex Partners V and certain Onex co-investors,
including Onex Corporation (together "Onex"), to help drive WEG's
next stage of organic growth and M&A expansion. Upon completion
of the transaction, expected later this year, Onex will join WEG's
current institutional shareholder, TA Associates (TA), as equal
capital partners. Financial terms of the transaction were not
disclosed.
The investment from Onex reflects WEG's position as one of the
nation's fastest-growing independent advisory firms. The backing of
Onex and TA further bolsters WEG's dual-pronged strategy of
generating robust organic growth while serving as the destination
of choice for successful independent wealth management businesses
seeking to join forces with a leading national RIA platform. Year
to date, WEG has added more than $2.4
billion in assets organically while also entering definitive
agreements on ten acquisitions representing $10.4 billion in total assets.
Jeff Dekko, Chief Executive Officer of Wealth Enhancement Group,
said, "Our new investment from Onex augments our continued
relationship with TA, bringing together two of the most
accomplished private equity investment firms in the world. Wealth
Enhancement Group has created a remarkable level of organic and
acquisitions-based growth over the years, with our firm well on its
way to becoming the premier wealth management platform across the
country. As we embark on the next stage of our growth vision, this
is the perfect moment to bring aboard an additional partner with a
long history of successful financial services investments."
Going forward, WEG will continue to be a privately held,
independent firm, under its existing leadership team, brand and
strategy. In addition to the firm's capital partners TA and Onex, a
large number of employees will continue to hold equity stakes in
the firm, reflecting a strong alignment of interests across WEG's
capital base, employees, financial advisors and their clients.
In addition to Jeff Dekko, WEG's senior management team
encompasses some of the most seasoned leaders in the wealth
management industry today, including Jim
Cahn, Chief Investments & Business Development Officer;
Kelly Windorski, Chief Financial
Officer; Utkarsh Patel, Chief
Digital & Marketing Officer; and Terri
Kallsen, Chief Operating Officer.
Mr. Dekko continued, "Similar to TA, Onex will be a strong
capital partner to WEG, with a proven track record and commitment
to making the investments that allow the companies it partners with
to thrive. They embrace our focus on the full continuum of
activities necessary for the long-term success of our strategy:
This includes attracting high-quality wealth management businesses
to become part of our national RIA platform, combined with
continuous investments in the talent, technology and resources our
financial advisors need to deliver a truly exceptional client
service experience that leads with holistic financial
planning."
Todd Clegg, Managing Director at
Onex, said, "We are delighted to partner with Wealth Enhancement
Group and TA to invest in the future of wealth management. Wealth
Enhancement Group has established a leading national wealth
management platform with a client-centric approach and a culture of
striving for continuous improvement in everything the firm does,
which has driven positive outcomes for clients and the business.
WEG's management team has demonstrated its ability to succeed
across a broad spectrum of industry, market and economic cycles.
Looking ahead, we're confident that WEG remains uniquely
well-positioned to keep growing, both organically and by continuing
its track record of well-executed acquisitions."
Roy Burns, Managing Director at
TA, said, "When we invested in Wealth Enhancement Group in 2019,
the firm's potential and success to date were very clear. Since
then, the firm's leadership team under Jeff Dekko has exceeded our
expectations by generating consistent growth and strong client
retention rates, even in the face of extraordinary events such as
the pandemic and its resultant disruptions on the markets and our
economy. We believe the best is yet to come with WEG's next chapter
of growth, and we're excited to welcome Onex as a fellow capital
partner in assisting WEG with accomplishing its strategic goals and
continuing to add value to its clients."
Raymond James & Associates,
Inc. served as exclusive financial advisor to Wealth Enhancement
Group on the transaction. Goodwin Procter LLP, acted as legal
counsel to TA Associates and Wealth Enhancement Group. Fried Frank
served as legal representation for Onex in the transaction.
About Wealth Enhancement Group
Wealth Enhancement
Group is a Greater
Minneapolis-based independent wealth management firm
offering comprehensive and customized financial planning and
investment management services. Founded in 1997, Wealth Enhancement
Group serves clients nationwide. Wealth Enhancement Group
specializes in providing retail clients with the team-based
knowledge and resources they need to simplify their financial life.
For more information, please visit www.wealthenhancement.com.
About Onex
Founded in 1984, Onex manages and invests capital on behalf of
its shareholders, institutional investors and high net worth
clients from around the world. Onex' platforms include: Onex
Partners, private equity funds focused on mid- to large-cap
opportunities in North America and
Western Europe; ONCAP, private
equity funds focused on middle market and smaller opportunities in
North America; Onex Credit, which manages primarily
non-investment grade debt through tradeable, private and
opportunistic credit strategies as well as actively managed public
equity and public credit funds; and Gluskin Sheff's wealth
management services. In total, as of June
30, 2021, Onex has approximately $46
billion of assets under management, of which approximately
$7.5 billion is its own investing
capital. With offices in Toronto,
New York, New Jersey, Boston and London, Onex and its experienced management
teams are collectively the largest investors across Onex'
platforms.
Onex shares trade on the Toronto Stock Exchange under the stock
ticker symbol ONEX. For more information on Onex, visit its
website at www.onex.com. Onex' security filings can also be
accessed at www.sedar.com.
About TA Associates
TA is a leading global growth
private equity firm. Focused on targeted sectors within five
industries – technology, healthcare, financial services, consumer
and business services – the firm invests in profitable, growing
companies with opportunities for sustained growth, and has invested
in more than 550 companies around the world. Investing as either a
majority or minority investor, TA employs a long-term approach,
utilizing its strategic resources to help management teams build
lasting value in high quality growth companies. TA has raised
$47.5 billion in capital since its
founding in 1968 and is committing to new investments at the pace
of over $3 billion per year. The
firm's more than 100 investment professionals are based in
Boston, Menlo Park, London, Mumbai and Hong
Kong. More information about TA can be found at
www.ta.com
*Wealth Enhancement Group and its Registered Investment Advisor,
Wealth Enhancement Advisory Services, had $38.8 billion in client brokerage and advisory
assets as of 7/31/2021. With the addition of previously announced
acquisitions that closed in August and are expected to close in
October, Wealth Enhancement Group is projected to have $40.2 billion in client brokerage, advisory and
trust assets as of October 2021.
Advisory services offered through Wealth Enhancement Advisory
Services, LLC (WEAS), a registered investment advisor. Certain, but
not all, investment advisor representatives (IARs) of WEAS are also
registered representatives of and offer securities through LPL
Financial, Member FINRA/SIPC. Wealth Enhancement Group and Wealth
Enhancement Advisory Services are separate entities from LPL
Financial. Wealth Enhancement Group is a registered trademark of
Wealth Enhancement Group, LLC.
For Further Information
For Wealth Enhancement Group: For Onex:
Joseph Kuo / Chris
Clemens
Haven Tower
Group Jill
Homenuk
424 317 4851 or 424 317
4854 Managing Director –
Shareholder Relations and Communications
jkuo@haventower.com Onex
or
cclemens@haventower.com 416
362 7711
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SOURCE Wealth Enhancement Group