Carlyle Ups Interest in MAI Capital with Majority Stake
MAI Capital Management, the $72.6 billion registered investment advisor, is set to have a familiar new owner.
Private equity firm Carlyle has gone from owning a stake in MAI through its investment in Galway Holdings to agreeing to acquire the Cleveland-based RIA outright. The purchase, which is expected to close in the second half of 2026, values MAI at more than $2.8 billion and sees previous Galway investors Harvest Partners and Oak Hill Capital exit their positions.
Carlyle makes the move a year after MAI made one of last year’s larger pure RIA acquisitions for Los Angeles-based Evoke Advisors, which gave it a major boost to its asset count and ability to work with upper-high-net-worth clients that include Hollywood actors, musicians, media executives and pro athletes. Chairman and CEO Rick Buoncore, who bought MAI in 2007 when it had $900 million in assets, said Carlyle was a natural fit as it had been witnessing the firm’s growth from the sidelines as a minority stakeholder.
“What’s great about Carlyle is that they appreciate the management team we have, and we’ve built a really deep bench now,” Buoncore said. “When I talk to them, I’m not explaining the business; we’re talking about the business, and there’s a big difference there.”
Buoncore also noted that MAI will be Carlyle’s only majority bet in the RIA sector. Carlyle also holds a minority interest in RIA aggregator Captrust.
When the deal is complete, Carlyle will hold board seats and work alongside Buoncore and MAI’s management team. Buoncore, Evoke Managing Partner David Hou, and other firm employees hold minority stakes, according to its Form ADV.
Buoncore said he is rolling over 100% of his equity in the deal to continue his bet on the firm’s growth as a scaled RIA. Some senior leaders are taking some chips off the table, such as cashing out 20% and keeping in 80%, he said.
“By and large, management’s rolling significant amount of money into this, because we see the next five to 10 years in our industry to be as good as they’ve ever been,” he said. “You have had this transition from the old wirehouse model to the RA model. … We get to do whatever the client needs to help their life goals, and that’s the big other theme I see happening in our business, which is that it’s going from a wealth management business to life management.”
Ardea Partners was MAI’s financial advisor, and Houlihan Lokey advised Carlyle.
Washington, D.C.-based Carlyle is one of the largest private equity firms in the U.S., with $435 billion in AUM. It’s doubling down on MAI, showing its interest in the RIA sector and its belief that it can keep growing a firm that had $9.2 billion in assets as of 2021, when it initially invested in the firm through Galway.
“We believe in the multi-decade-long industry tailwinds supporting scaled advisor-led platforms with integrated business models and holistic wealth management capabilities,” said Jim Burr, Carlyle’s co-head of global financial services, and Partner Jitij Dwivedi, in a statement.
The change in ownership is part of an ongoing cycle of private equity and bank investment in the RIA sector that ramped up around 2020. According to two people familiar with the move, Lightyear Capital and the Ontario Teachers’ Pension Plan Board are currently on the market to exit their majority positions in the $36.5 billion RIA, Allworth Financial.
MAI’s leadership team and “strategic priorities” will remain in place after the deal, and Galway Holdings and its insurance subsidiaries will continue providing insurance options to MAI clients.
MAI’s recapitalization with Carlyle will be used to expand service offerings, invest in organic and inorganic growth initiatives, and continue training programs, including MAI University, which Buoncore said currently has 100 employees out of 700 in programs.
Buoncore said his goal for MAI is not just growth, but to be “the best firm in the industry.” He equated adding Evoke and all the other additional services and teams to MAI to playing chess with additional pieces.
“I’m not a great chess player,” he said. “I can play, but now I don’t need to be a great chess player to win, because I have two queens, I have three rooks, I have four bishops, I have five knights. So let’s go play.”