A Connecticut RIA has accepted minority investment from Karl Heckenberg’s Constellation Wealth Capital.
Procyon Partners, an $8bn RIA, said Thursday that the deal with serial RIA investor Constellation will allow the firm to scale its operations and facilitate hiring.
Sources told Citywire in December that Procyon was in the market for a minority investor. Citywire also reported last month that Constellation Wealth Capital and Rise Growth Partners were in talks to invest in the RIA.
In seeking an investor, Procyon co-founder and chief executive Phil Fiore said he wanted help with strategic planning, including for future M&A. Fiore said his firm plans to acquire independent RIAs and pursue wirehouse liftouts.
‘Having a strategic thinker by our side who has been there done that, to have that sounding board when thinking about our evolution, is immensely important for us,’ Fiore said. ‘A lot of this is making sure we have capital to go out there and do really good deals.’
He said Procyon already has a few deals in the works, with a focus on expanding on the East Coast in the near term. Speaking further about his plans, Fiore said he hopes to bring services like accounting and insurance in-house, possibly via acquisition.
Procyon told the Securities and Exchange Commission (SEC) in a March filing that it counts more than 1,200 individuals as clients. Procyon also serves pension plans and businesses. The RIA reported a presence in New York City, Melville, N.Y. and Fulton, Md. According to Fiore, the firm has 60 employees and 13 partners.
The Shelton, Conn., RIA was launched in 2017 when Fiore and four other founding partners broke away from wirehouse UBS, where they had overseen more than $400m in wealth assets and $8bn for institutional clients. Dynasty Financial Partners supported their move and has provided the RIA with technology, compliance and other services ever since.
In a phone call, Fiore said he expects things to remain ‘business as usual’ with Dynasty.
‘We are excited to support Procyon Partners’ vision and momentum,’ Heckenberg, president and managing partner of Constellation, stated. ‘Their team has built a compelling, advisor-driven business with a clear growth trajectory.’
Heckenberg, who previously ran RIA investor Emigrant Partners, launched Constellation in late 2023, unveiling plans to take non-controlling investments in large and mid-sized RIAs. Constellation has invested in a handful of RIAs, including Lido Advisors, Perigon Wealth Management and Cresset.
Constellation closed a $1bn capital raise in December, with contributions from undisclosed insurance firms, endowments, foundations, asset managers and family offices.
Houlihan Lokey advised Procyon Partners on the deal. Dynasty said its investment bank also provided assistance.
