Alternative asset manager The Carlyle Group has made a minority investment in Avalon Advisors, LLC, a Houston-based wealth advisor and asset manager with nearly USD4 billion in assets under management. The transaction was signed late last week but financial terms have not been disclosed.
Equity for the investment comes from Carlyle Global Financial Services Partners, a USD1.1 billion fund that invests in a range of financial services companies. Platform Partners, a private investment firm, will participate in the recapitalisation with a significant portion of its existing stake in Avalon and continue to serve as a strategic partner.
Carlyle Managing Director, Randy Quarles (pictured), says: "We are pleased to form this partnership with Avalon. The firm has committed leadership, a talented team and an excellent track record of investment performance and client service. Avalon has deep market penetration and focused expansion plans that we look forward to supporting."
Robert Gauntt, one of the founding partners of Avalon, says: "We believe this new partnership will better enable us to expand our spectrum of investment solutions with a partner who can provide expertise in complementary asset capabilities. This investment by Carlyle is in line with our desire to maintain operating independence with a partner who understands our business, our client base and works collaboratively with management."
Fred Lummis, Chairman and CEO of Platform Partners, says: "Despite a very difficult economy over the past several years, Avalon has performed extremely well in large part because they delivered on their promises of client service. In times of stress, this means team continuity, advisor access, investment accountability and nimble product development. It is not surprising that more individuals and institutions are looking for this type of service, and we look forward to working with Carlyle to support the Avalon team."