Merchant Investment Management, a New York–based private partnership that provides growth capital and other support to independent financial services firms, among them RIAs, has made a minority stake investment in another registered investment advisor—this time in Miracle Mile Advisors, a Los Angeles–based firm with $2 billion in assets under management.
Merchant, which now has about 25 partner RIAs, takes a noncontrolling, minority stake in wealth management firms, with the goal of helping them grow and scale over time.
The news follows Merchant’s minority investments in Corient, a Newport Beach, Calif.–based RIA with $3.1 billion in AUM, in September 2020, and Baldwin Brothers, a Boston-based RIA with $1.2 billion in AUM, last month.
Miracle Mile President Matt Granski
Miracle Mile has more than 30 employees operating out of multiple offices in Southern California. The firm focuses on organic growth and recruiting younger advisors.
The RIA has grown 387% cumulatively since January 2016, or at a compounded annual growth rate of 31%. The partnership with Merchant will allow the firm to sustain its growth rate.
"As a firm built by advisors to create a work environment tailored to supporting advisors, we know how important it is to reinvest back into our firm," said Matt Granski, president at Miracle Mile, in a statement. "We are excited to partner with Merchant as they support our emphasis on recruiting and cultivating next-generation talent, identifying and implementing difference-making technology and fostering an enriched client experience."