Dallas-based True North Advisors is the latest registered investment advisory firm to receive a minority, non-controlling investment from Wealth Partners Capital Group and HGGC’s Aspire Holdings platform, a pair of private equity shops focused on the independent wealth management space.
With about $3.3 billion under management across more than 600 individual clients and around 30 institutional investors, True North was founded by CEO Scott Wood and President Mark Gehlbach. Serving entrepreneurs, business owners and families, the 50-person multi-family office includes 19 financial planners, a 10-person investment group and six people providing business operations support.
The firm also offers turnkey access to an alternative investment platform with a menu of “institutional-quality private investments,” called Western Alternative Strategies.
Since celebrating its 20th anniversary in July 2020, True North has grown assets by $1.3 billion.
The investment, terms of which were not disclosed, will support regional expansion through a deliberate inorganic growth strategy after two previous deals in 2017 and 2018, one of which established a second True North location in Fort Worth.
The goal is to start slowly, “ideally one or two this year,” and gain transaction expertise as the firm expands regionally across Texas and the Southwestern U.S., according to Gelbach.
“True North is well positioned to expand its platform, and we are pleased to bring additional resources to help the firm continue its momentum through both organic growth and strategic M&A,” HGGC President Neil White said in a statement. “We look forward to supporting the management team on these and other business-building initiatives in the coming years.”
“We are confident that this partnership will open up new opportunities for growth, creativity, and success,” added Gehlbach.
This isn’t the first time HGGC and WPCG have teamed up to buy a piece of a rapidly growing RIA in support of inorganic growth. Currently, the investment vehicles both own stakes in Merit Financial, Waverly Advisors and Apella Capital.
WPCG, which debuted in 2017 with investments in EP Wealth Advisors, Forbes Family Trust and MAI Capital Management, also joined forces with Galway Holdings when it bought a majority of MAI. Since launching, WPCG has supported $33 billion in asset growth across all portfolio firms.
