Steward Partners, an employee-owned independent financial services firm specializing in comprehensive wealth management solutions, raised $475 million in strategic capital from Ares Credit funds, comprising a significant expansion of its lending relationship and a non-controlling minority investment. Ares joins Steward Partners’ existing institutional partners, Cynosure Group and The Pritzker Organization (TPO), in backing the firm. Strategic direction and day-to-day decision-making remain with Steward Partners’ leadership and partners.
“This is another defining milestone for Steward Partners,” Jim Gold, CEO of Steward Partners, said. “This transaction is a strong affirmation of everything our partners have built over more than a decade. Our team has created meaningful value through years of deep commitment to our mission, and we are thrilled to see the commitment of our partners rewarded.”
Hy Saporta, president and chief operating officer of Steward Partners, said, “We weren’t looking for capital alone; we were looking for alignment, vision and partnership. Ares stood out because they respect independence, understand collaboration and support our long-term vision. This structure preserves everything that makes Steward Partners special.”
Scott Rosen, partner in Ares Credit, said, “Ares is pleased to provide flexible capital to support Steward Partners in its next phase of growth, and this transaction reflects our confidence in the company’s leadership and market position. We’re proud to work with a company that has deep alignment across employees, management and investors.”
Keith Taylor, board chairman of Steward Partners, said, “Jim and Hy had a vision for creating an exceptional, employee-owned, advisory firm and, importantly, one that also distributed cash flow to the employee owners in both profit-sharing as well as capital events. This is a terrific way to recognize and reward partners for their contributions. Cynosure’s investment in 2019 was the first of what is now three investments that strengthen Steward and return money to employee owners. I know I speak for TPO as well when I say that the company performance thus far has been amazing, but the best is yet to come and we are excited to remain invested for that future.”
Jason Sussman of TPO said, “Steward has redefined what a partnership model can look like in wealth management, and they have sustained it at scale. We look forward to the next leg of growth.”
Saporta concluded, “We’re extremely proud of what we’ve built, we’re grateful to the partners who got us here, and we’re beyond energized by the opportunities that lay ahead as we continue building a firm that is durable, independent and truly differentiated in the wealth management space.”
Piper Sandler served as the exclusive financial advisor to Steward Partners. Ropes & Gray and Latham & Watkins served as legal counsel to Steward Partners. Cahill Gordon & Reindel served as legal counsel to Ares.
