Constellation Wealth Companions, the personal fairness agency based by former Emigrant Companions CEO Karl Heckenberg specializing in wealth managers, has closed its inaugural fund with greater than $1 billion in capital commitments.
The Constellation Wealth Capital Fund consists of companions starting from insurance coverage corporations and endowments to foundations, asset managers and fund-of-funds. In response to the agency, the fund was oversubscribed, and Heckenberg harassed the “important market alternative” in working with wealth administration companies at “inflection factors” of their progress paths.
“We imagine our deep sector information, expertise and skill to offer tailor-made capital and advisory options make us a great accomplice for wealth managers centered on constructing worthwhile companies over the long run,” Heckenberg stated.
Heckenberg based Constellation in late 2023, trying to take minority stakes in rising wealth administration companies nationwide, providing fund traders risk-adjusted returns.
Constellation presents progress capital for rising companies organically and inorganically, in addition to further providers to spice up and scale their efficiency and recruit and retain expertise.
In response to John Langston, founding father of Republic Capital Group, Constellation seeks longer-term investments in companies needing comparatively smaller bursts of money. This fills a spot left by giant personal fairness companies, which usually write greater checks. In response to SEC filings, Constellation’s enterprise mannequin entails investing between $25 million and $200 million in companies managing between $1 billion and $200 billion in shopper belongings.
Since forming in late 2023, Constellation Wealth has made eight investments out of its first fund, together with its first in AlphaCore Wealth Advisory, in addition to AITi Tiedemann Global, Avior Wealth Management, CV Advisors, Lido Advisors, Perigon Wealth Management and Requisite Capital Administration.
Moreover, the agency introduced earlier this month that it had taken a minority stake in Cresset Asset Management. Constellation invested $150 million, representing lower than 10% of Cresset’s complete fairness. The agency anticipated to make use of the funds to enhance its expertise and recruit advisors. (The agency remained majority-owned by workers and shoppers.)
