The $24 billion advisory agency Lido Advisors is merging with Pegasus Companions, a Wisconsin-based registered funding advisor with greater than $3 billion in managed belongings.
The deal will strengthen Lido’s engagement with ultra-high-net-worth households within the Midwest area “and past,” in response to Lido Advisors President Ken Stern.
Pegasus was based in 2015 and is predicated in Mequon, Wisc., specializing in complete wealth administration and household workplace wants for UHNW households. The agency focuses on funding administration, monetary planning, household wealth transfers and different investments. It’s led by CEO Todd Krieg and President Matt D’Attilio, each of whom co-founded the agency.
“In Lido, we noticed a companion who shares our mission of placing consumer pursuits first and serving them with deep funding capabilities, selective alternate options and superior wealth planning,” Krieg mentioned.
Pegasus’s 22 staff are becoming a member of Lido as part of the deal, with most turning into companions. Park Sutton Advisors served as Pegasus’s monetary advisor within the merger.
In an interview with WealthManagement.com, Lido CEO Jason Ozur mentioned the agency was interested in Pegasus’ “strong and scalable funding course of” for alternate options, in addition to a degree of subtle due diligence on alts, significantly non-public fairness funds and different varieties of funds.
“And that’s an amazing complement to Lido Advisors different technique and our alternate options division,” Ozur mentioned.
He mentioned every M&A deal for the agency wanted to supply a mixture of expertise and geography, and Pegasus hit each requirements, with the area being an space they’d “all the time needed to plant a flag in.”
“And we’ve got a really massive consumer base in Milwaukee,” he mentioned. “Having the ability to companion up with them in that geography was really thrilling.”
The Los Angeles-based Lido Advisors was based in 1999 and has 15 bodily places of work nationwide. It serves greater than 4,700 shoppers (about 805 of whom are UHNW). Personal fairness agency Charlesbank Capital Companions is Lido’s majority proprietor, having purchased its stake within the RIA in 2021. Charlesbank oversaw investments for Harvard College’s endowment earlier than spinning off as a middle-market PE investor.
Since Charlesbank took a majority stake, the agency’s managed belongings have grown from about $6 billion to $24 billion.
Earlier this 12 months, Lido bought a minority stake to Constellation Wealth Capital, the non-public fairness agency based by former Emigrant Companions CEO Karl Heckenberg. Constellation was launched in 2023 and has invested in two California-based corporations in addition to Lido.
Days earlier than the Lido announcement, $6.5 billion AUM Bay Space-based Perigon Wealth grew to become Constellation’s second California companion, whereas Constellation invested within the $2.6 billion agency AlphaCore Wealth Advisory late final 12 months.
In June, Lido made its first deal after promoting the stake to Constellation when it acquired Shore Morgan Younger, a $615 million RIA based mostly in New Albany, Ohio (which has turn out to be often known as “The Silicon Heartland” and considered as a burgeoning tech hub).
