EP Wealth Advisors, an acquisitive Torrance, Calif.-based registered investment advisor with $36 billion in assets under management as of June 2025, has issued a $400 million seven-year term loan and $100 million five-year revolving credit facility, according to S&P Global Ratings and Moody’s.
“This financing reflects the strength and growth of EP Wealth,” said EP Wealth Chief Financial Officer Christopher Toumajian, in a statement. “By lowering our borrowing costs and expanding our financial flexibility, we can reinvest more into our people, our clients and strategic growth opportunities. Ultimately, this positions us to continue building long-term value while keeping our focus on delivering exceptional service to the families and individuals who trust us.”
An S&P Global Ratings report said the proceeds will be used to pay down existing debt and finance future acquisitions. The ratings agency assigned a B- credit rating to the RIA, with a stable outlook.
At the same time, Moody’s assigned a B2 rating to the firm, as well as its proposed credit facility, also with a stable outlook.
Both ratings fall into the “speculative grade” category on the agencies’ scale.
The S&P report points to EP’s organic and inorganic growth over its 26-year history.
“Since 2017, EPW has seen organic net inflows at the higher end of rated peers,” the report stated. “EPW has also actively acquired smaller wealth managers during recent years, although acquired AUM still represents a minority of overall AUM. The company’s pace of growth through acquisitions has been somewhat more measured than peers. While we view the strategy as generally prudent, this has also resulted in a smaller operating scale than rated peers.”
The company is well-positioned to integrate future acquisitions and maximize economies of scale, given that firms come under a single brand and philosophy, S&P added.
Moody’s said the transaction will increase pro forma adjusted debt-to-EBITDA to 4.9x, up from 4.4x for the year ending June 30, 2025.
“Compared to industry averages, the company boasts a diverse, relatively young and long-tenured advisor base with significant ownership in EP,” Moody’s stated. “However, the rating is constrained by the company’s earnings sensitivity to overall financial market conditions and limited business diversification due to its reliance on the retail wealth channel. Moreover, EP’s modest market share in a competitive sector, along with the need for ongoing investment in service offerings and technology, presents risk. Failure to invest adequately could result in client or advisor attrition, adversely impacting scale, profitability and cash flow.”
EP has been highly acquisitive in the RIA space. The firm has done eight deals so far in 2025, the most recent with Santa Fe, N.M.-based Better Money Decisions, with $370 million in AUM.
The RIA now has 54 offices in 19 states and nearly 200 advisors. EP received a minority investment from Berkshire Partners in 2020 to help fuel its acquisitions, but is currently seeking a new minority investment partner.
EP Wealth was founded in 1999 by Derek Holman and Brian Parker, who were childhood friends. It was originally launched as Premier Financial Management before rebranding to EP Wealth after a 2004 merger. They remain managing directors of the firm, now run by CEO Ryan Parker, who has no relation to Brian Parker.
In a previous interview, Ryan Parker said EP Wealth’s M&A strategy is focused on talent and people. However, the teams they identify are often in faster-growing metropolitan areas that “lend themselves to the entrepreneurial boutiques.”
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