Constellation Wealth Capital has agreed to make a minority investment in Confluence Financial Partners, an independent wealth management firm with approximately $7.6 billion in assets under management and an additional $400 million in 401(k) plan assets. Financial terms of the transaction were not disclosed.
The partnership will provide Confluence with additional capital and strategic resources to support its long-term growth while allowing the firm’s existing leadership team to retain control.
Confluence said its client-focused approach, leadership structure and investment philosophy will remain unchanged following the transaction.
The firm operates five offices across Pennsylvania and Florida, including locations in Pittsburgh, McMurray, Sewickley and Grove City, Pennsylvania, and Bonita Springs, Florida.
Confluence provides comprehensive financial planning and investment management services to individuals, families, businesses and institutions.
The company has expanded significantly in recent years by investing in its advisory capabilities, specialized expertise and operating infrastructure as its clients’ financial needs have become more complex.
Confluence was also recently recognized by Citywire as Pennsylvania’s fastest-growing registered investment adviser based on metrics including percentage and dollar growth in AUM and employee growth.
The new capital from Constellation is expected to support further investments in Confluence’s people, technology, capabilities and other infrastructure.
The firm also plans to pursue strategic growth initiatives while maintaining what management describes as a thoughtful and sustainable approach to expansion.
Confluence CEO and co-founder Greg Weimer said the decision was driven by the firm’s plans for the next decade rather than growth for its own sake.
The company wants to expand the resources available to its advisors while continuing to provide high-quality financial advice and create career opportunities for its employees.
Constellation Wealth Capital focuses exclusively on investing in wealth management businesses.
Its model combines long-term capital with industry expertise and strategic support while generally allowing partner firms to preserve their existing leadership, cultures and operating identities.
Constellation said Confluence has built a differentiated position in the Pittsburgh market through its focus on client service and longstanding relationships.
For Confluence clients, the firm said the partnership will not change how they work with their advisors.
Existing advisors and leadership will remain in place, as will Confluence’s approach to financial planning and investment management.
Confluence enters the partnership with approximately $8 billion when its stated $7.6 billion of AUM and $400 million of 401(k) plan assets are considered together.
The investment gives Constellation another partnership with a sizable independent wealth manager while providing Confluence with additional resources to continue expanding its platform.
KEY QUOTES:
“For us, this decision was about where we want to take Confluence over the next decade and beyond. We have ambitious plans for our future, but growth alone has never been the goal. We want to continue building a successful firm, one that strives to provide high-quality financial advice to clients, creates meaningful opportunities for our people and gives advisors the resources and support needed to serve clients effectively. We believe Constellation is the right partner to help us do that.”
“We were intentional about finding a partner who appreciates both what Confluence has become and what we believe it can be. Constellation understands our industry, respects our culture and shares our long-term mindset. That alignment was extremely important to us.”
Greg Weimer, CEO And Co-Founder Of Confluence Financial Partners
“We are highly impressed by what Greg and Gregory have built at Confluence. They have established a differentiated brand in the Pittsburgh market, built on a longstanding commitment to client service and enduring client relationships. We see a bright future for this team and are proud to support them.”
Pat McHugh, Partner And Head Of Investments At Constellation Wealth Capital
“We are thrilled to partner with the Confluence team. We are excited to be able to support their momentum and growth in Pittsburgh and we are confident that this partnership will allow the Confluence team to continue building, growing and delivering great outcomes for their clients and team.”
Karl Heckenberg, Managing Partner And Founder Of Constellation Wealth Capital
