Parthenon Capital, a private equity firm based in Boston, has struck an agreement with Chicago-based RSM US LLP, a Top 5 accounting and auditing firm, to acquire RSM’s wealth management practice.
RSM US Wealth Management LLC will be renamed Choreo LLC, with “Choreo” as the new brand name. The deal is expected to be completed in the first quarter of the year, with a target date of Feb. 18.
Financial terms of the deal were not disclosed. RSM US Wealth Management had over $12 billion in assets under management and assets under advisement as of Nov. 30, 2021. Parthenon anticipates that all of RSM’s approximately 140 wealth management professionals will transition to Choreo, where the team will serve as the foundation for future growth of the practice.
Larry Miles, a 20-year wealth management veteran, will become CEO of Choreo, while Dave Scudder, RSM US Wealth Management’s national leader, will transition to Choreo with the rest of the wealth management team and become Choreo’s executive vice president of strategic partnerships.
The deal is part of a trend of accounting firms striking deals with private equity and other investment firms to receive capital or buy their wealth management practices. In November, Warren Averett’s wealth management subsidiary entered into a strategic partnership with Wealth Partners Capital Group and HGGC in which they acquired the majority of Warren Averett Asset Management (see story). Other firms striking deals last year with investment firms included EisnerAmper with TowerBrook Capital Partners, and Schellman & Co. with Lightyear Capital
In this case, Parthenon is outright acquiring RSM’s wealth management practice. “We’re incredibly proud of our wealth management team and their accomplishments over the past two decades,” said RSM managing partner and CEO Joe Adams in a statement Wednesday. “We believe the combination of the experienced wealth management team with the vision of Parthenon and Larry Miles puts Choreo in a strong position for the future.”
RSM US ranked No. 5 on Accounting Today’s 2021 list of the Top 100 Firms, with $28 million in annual revenue.
RSM and Parthenon said their clients would continue working with the same wealth management team they know and will receive the same investment advisory, financial planning, and other wealth management services. Meanwhile, clients can continue to receive tax and other services from RSM US LLP.
“RSM US Wealth Management is a hidden gem in the industry, and we see exciting potential for growth,” Miles said in a statement. “We’re eager to take the company to the next level by investing in the team, technology, recruiting and marketing, as well as expanding into new markets organically and through acquisitions. We look forward to building upon the culture that has contributed to a strong wealth management team, and we’re excited to drive growth that will create new opportunities for our professionals and unlock added value for clients.”