Lido Advisors has sold a stake to HPS Investment Partners, which joins prior investor Charlesbank Capital Partners in fueling Lido’s push to grow beyond its current $30 billion in assets under management.
On Wednesday, Los Angeles-based Lido announced it entered into a “strategic partnership” with the alternative investment firm, owned by BlackRock since December 2024.
HPS joins private equity firm Charlesbank Capital Partners, which became a majority owner in 2021, and Lido’s 135 employee-owners. The firm also got a non-controlling stake from Constellation Wealth Capital in 2024. The firms did not disclose the size or terms of the investments, but said the HPS deal is expected to close in the third quarter of 2025.
Lido was founded in 1999, focusing on high-net-worth individuals, families and institutions. Since Charlesbank’s investment stake, it has grown rapidly, more than tripling assets under management and working with clients across investment management, estate and tax planning, and alternative investing.
“We are thrilled to partner with the HPS team. Their collaborative approach and long-term vision align perfectly with our goals, and we’re eager to begin this next phase of growth together,” CEO Jason Ozur said in a statement.
Dan Seivert, founder and CEO of Echelon Partners, said it’s not uncommon for RIAs to have two or three external stakeholders in the current environment, with investors bringing different skill sets and benefits. For instance, one may help with acquisition targets, while another could bring different investment options.
More broadly, Seivert said many private equity investors in the sector are deciding whether to “blow out” stakes completely in trades with other investors, taking just some money off the table, or even swapping out among their own funds to stay fully invested. Each scenario speaks to the strength of the RIA space for investors.
“Average private equity returns for the last 10 to 15 years have been around 11%, and most of the investment in the wealth management space are getting somewhere between 20% to 40%,” Seivert said.
The high required rates of return can create competing interests for private equity players, he said. On the one hand, they can cash out and mark a substantial gain for a fund. On the other hand, they can “keep their money in and keep getting the great return.”
Ardea Partners was the lead financial advisor on the deal, with additional advisement from Houlihan Lokey and Piper Sandler.
In May, Lido acquired a $729 million RIA based in Arizona, following the announcement the month prior of a deal for an $870 million firm in Menlo Park, Calif.
The firm has made nine acquisitions since January 2019, according to tracking by data and analytics firm RIA Growth Catalyst.
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