Minority capital is no longer being used primarily to provide shareholder liquidity. Increasingly, it’s funding growth.Tippapatt/iStockPhoto / Getty Images
For decades, wealth management firm owners faced a familiar dilemma: go it alone or relinquish control to access capital for the next stage of growth. Today, that equation is changing.
Minority equity investments are transforming how wealth management firms fund growth and plan succession. Unlike a traditional sale, these deals let company founders raise capital while retaining leadership. Previously limited to the largest firms, minority capital is now available to firms with less than $2-billion in assets under management (AUM).
This shift is changing the conversation for firm owners. Instead of choosing between selling or remaining independent, many now consider partnering to accelerate growth without losing control.
In a minority investment, an investor acquires a non-controlling equity stake while the current management team continues to own and operate the business. The firm’s brand and daily operations are unchanged and the new capital can support advisor recruitment, acquisitions, technology investment or partial shareholder liquidity.
Jim Dickson, founder and chief executive officer of Elevation Point Wealth Partners LLC, a Minneapolis-based investment firm that makes minority investments in independent wealth management businesses, summarized this shift in a recent LinkedIn post: “Advisors didn’t want to be acquired. They wanted to be accelerated.”
This observation reflects many founders’ priorities. Instead of giving up control, they seek partners who provide capital, infrastructure and strategic guidance while allowing them to continue building their businesses.
This distinction is increasingly appealing to firms with ambitious growth plans.
According to DeVoe & Co.’s Q1 2026 RIA M&A Deal Book, minority investment activity in the U.S. has more than doubled since 2023 and represented approximately 15 per cent of all announced registered investment adviser (RIA) transactions during the first quarter of 2026.
Even more notable is where that capital is being deployed. DeVoe & Co. observed that minority investment activity has “migrated down-market,” with firms managing less than US$2-billion in AUM accounting for an increasing share of completed transactions.
This shift reflects a broader change in how investors view wealth management businesses. Minority capital is no longer being used primarily to provide shareholder liquidity. Increasingly, it’s funding growth. Investors are backing firms with plans to recruit advisors, complete acquisitions, invest in technology and expand into new markets while allowing founders to remain in control.
The range of organizations considering or adopting this model is also expanding.
In 2025, St. Petersburg, Fla.-based Raymond James Financial Inc. introduced an equity financing program that enables advisors to exchange a minority equity stake in their practice for growth capital while retaining operating control.
The firm said the program is designed to help advisors fund succession, acquisitions and business expansion while reinforcing advisor independence and strengthening long-term retention on its platform.
Minority ownership is now seen as part of the broader competitive landscape, not just a private equity tool.
Canada is beginning to follow the same path. In 2025, Wellington-Altus Financial Inc. sold a 25-per-cent stake to U.S. private equity firm Kelso & Co., valuing the business at more than $1.5-billion and maintaining majority Canadian ownership. Last month, Harbourfront Wealth Management Inc. received a strategic investment from Berkshire Partners LLC, showing that institutional investors are increasingly willing to support Canadian wealth management firms without seeking full ownership.
When minority capital is and isn’t suitable
For founders, this trend marks an important shift. Institutional capital is no longer just about selling the business; it can also strengthen it. However, minority capital is not suitable for every firm.
Founders should assess whether they have a credible growth plan. Capital can accelerate a strategy but rarely creates one. Investors want to see clear plans for growth, such as advisor recruitment, acquisitions and new avenues for growing a firm’s client base.
Then, founders should consider whether the business can succeed without them. Institutional investors value strong management teams, clear governance and succession plans for key roles, making such firms more attractive than those centred on one individual.
Finally, founders should devote as much attention to evaluating the investor as they do to negotiating valuation. A minority shareholder may not control the business, but board representation, governance rights and shareholder agreements can affect future acquisitions, leadership decisions and eventual exit opportunities.
Minority investments will not replace outright acquisitions, but they’ve become a compelling third option for firms seeking growth without giving up independence. As capital increasingly flows into Canadian wealth management, founders will have more strategic choices than ever.
Joe Millott is a partner at Fort Capital Partners, an independent investment bank specializing in wealth and asset management mergers and acquisitions, with offices in Vancouver, Calgary and Toronto.