Carlyle invests in wealth manager

The firm, led by David Rubenstein, is acquiring a minority position in Avalon Advisors, which is partially owned by CapStreet spin-out Platform Partners.

The Carlyle Group has made an investment in a wealth management firm based in Houston that manages $4 billion, adding to its roster of financial services organisations and building up its fee-generating assets ahead of a potential public filing.

Carlyle announced a minority investment in Avalon Advisors, a Houston-based wealth advisor and asset manager. Details of the transactions were not disclosed.

Carlyle made the investment from its $1.1 billion financial services fund, which it closed last year. Platform Partners, a private investment firm, will also take part in the recapitalisation with its existing stake in the firm, according to a statement from Carlyle. Platform, based in Houston, as co-founded by Fred Lummis, who co-founded The CapStreet Group, was formerly called Summit Capital.

Carlyle has been on an acquisition spree over the past year, making investments in financial services firms like Claren Road Asset Management, a $4.5 billion hedge fund, and Emerging Sovereign Group, an emerging markets equities firm.

The firm also acquired AlpInvest earlier this year, one of the biggest limited partners in the industry.

While the firm has not disclosed its plan, media reports over the past year have said the firm is preparing a public filing. A Bloomberg report from late last year quoted firm co-founder William Conway as saying the firm was preparing for a public share sale to raise permanent capital.