Constellation Wealth Companions, the non-public 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 contains companions starting from insurance coverage corporations and endowments to foundations, asset managers and fund-of-funds. In keeping with the agency, the fund was oversubscribed, and Heckenberg confused the “vital market alternative” in working with wealth administration companies at “inflection factors” of their development paths.
“We imagine our deep sector data, expertise and talent to offer tailor-made capital and advisory options make us a super accomplice for wealth managers targeted on constructing worthwhile companies over the long run,” Heckenberg mentioned.
Heckenberg based Constellation in late 2023, seeking to take minority stakes in rising wealth administration companies nationwide, providing fund buyers risk-adjusted returns.
Constellation presents development capital for rising companies organically and inorganically, in addition to further companies to spice up and scale their efficiency and recruit and retain expertise.
In keeping with 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 non-public fairness companies, which usually write greater checks. In keeping with 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 International, Avior Wealth Administration, CV Advisors, Lido Advisors, Perigon Wealth Administration and Requisite Capital Administration.
Moreover, the agency introduced earlier this month that it had taken a minority stake in Cresset Asset Administration. Constellation invested $150 million, representing lower than 10% of Cresset’s whole 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.)