Wealth Management reports that Sowell Management, a registered investment adviser with more than $6.5 billion in assets under management, has sold a minority stake to Merchant, a New York-based private partnership focused on supporting independent financial services firms.
Sowell plans to use the investment to launch its Advisor Partnership Program, an initiative that allows both new and existing advisors to access equity ownership and growth capital.
Firm leadership emphasized that scale has become increasingly important as the wealth management industry continues to consolidate. Following a due diligence process, Sowell selected Merchant as a strategic partner based on its experience in the RIA space and alignment with the firm's growth objectives.
The investment follows several recent strategic initiatives. Wealth Management notes that Sowell recently launched Cache River Private Wealth, a division focused on clients with at least $5 million in net worth.
Sowell also expanded its platform through partnerships formed in October. The firm partnered with Rayliant to integrate investment research and strategies into its outsourced chief investment officer platform, with Rayliant's founder assuming the role of chief investment strategist. In addition, Wealth Management reports that Sowell partnered with Capital Connect to provide merger and acquisition advisory services, valuation, and exit planning resources to clients who own small and mid-sized businesses.
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