About Reverence Capital Partners

• Founded: 2013

• Headquarters: New York City, United States

• AUM: Approximately $11bn as of 2024

• Strategy: Middle-market private equity, financial and business services

• Thesis: Reverence backs founder-owned and family-owned firms in financial services through buy-and-build strategies, targeting businesses undergoing digital transformation or regulatory complexity.

• Track record: Fund IV closed at $4.3bn in 2022; prior funds include Fund III ($2.1bn, 2019) and Fund II ($1.3bn, 2016)

• Leadership: Milton Berlinski (Co-Founder and Managing Partner), Peter Aberg (Co-Founder and Managing Partner)

Reverence Capital Partners closed a continuation vehicle for Osaic, its wealth management platform, securing over $2bn through the CV and an accompanying recapitalisation. Ares Management and Lexington Partners led the transaction. The structure allows Reverence to retain its stake in Osaic while providing liquidity to existing limited partners and bringing in new institutional capital. Osaic operates as a consolidator of independent broker-dealers and registered investment advisers, a segment experiencing ongoing regulatory and technology-driven consolidation.

Continuation vehicles have become a standard tool for GP-led secondaries, but this transaction's size signals something beyond routine portfolio management. At over $2bn, the Osaic CV ranks among the larger single-asset deals closed in 2024, comparable to the $2.5bn continuation fund Bain Capital raised for cybersecurity firm Cylance in mid-2023 and the $1.8bn vehicle Thoma Bravo closed for Instructure earlier this year. The scale suggests Reverence sees material unrealized value in Osaic's rollup strategy — enough to justify retaining exposure rather than exiting outright.

The timing also reflects a shift in how financial services platforms are being valued. Osaic's business model depends on aggregating smaller advisory firms and driving margin improvement through shared infrastructure, a thesis that requires multi-year deployment cycles. Reverence originally backed Osaic in 2018; a traditional hold period would have pushed toward a 2023–2024 exit. Instead, the CV extends the runway while Osaic completes additional tuck-in acquisitions. Whether the added capital accelerates M&A or primarily funds technology upgrades will determine if this vehicle outperforms the alternatives Reverence passed on — a sale to a strategic buyer or a direct secondary to another fund.

Source: AltAssets