Exclusive-TPG in lead to buy stake in Creative Planning at $15 billion valuation, sources say By Reuters

Written by Milana Finn and David French

(Reuters) – Buyout firm TPG has emerged as the front-runner to take a $2 billion minority stake in Creative Planning, in a deal that could value the wealth management company at more than $15 billion, people familiar with the matter said on Saturday.

The deal will mark TPG’s second bet on a wealth manager within a week, and underscores the growing demand for deal-making in a sector that generates lucrative fee income for managers. On Thursday, TPG closed a deal to buy a minority stake in Homrich Berg.

San Francisco-based TPG is set to prevail in an auction for a stake in Creative Planning that has drawn interest from other buyout firms, including Permira, said the sources, who requested anonymity because the discussions are confidential. The sources added that the deal may be announced in the coming days.

If the talks succeed, TPG will become one of the owners in the wealth manager, along with private equity firm General Atlantic, which took a minority stake in Creative Planning in 2020.

TPG and Permira declined to comment. Creative Planning did not immediately respond to requests for comment.

Wealth managers have traditionally attracted strong interest from private equity firms that want to back companies that generate consistent cash flows. The fragmented nature of the wealth management industry also means that companies can grow quickly by acquiring competitors.

Overland Park, Kan.-based Creative Planning offers services including financial planning, tax, retirement plans and corporate financial consulting, and managed more than $300 billion in assets at the end of 2023, according to its website.

Last year, Creative Planning agreed to buy Goldman Sachs’ personal finance unit, after the Wall Street bank undertook a strategic overhaul of its wealth management unit to focus on high-net-worth individuals, following its exit from the consumer lending business.

Founded in 1992 by private equity executives Jim Coulter and David Bonderman, TPG had about $229 billion in assets under management as of the end of June, up 65% from a year earlier. The company, currently led by John Winkelried, posted a 60% jump in fee-related income from asset management in the latest quarter.