If Your Financial Advisor Is Now Owned by Private Equity: What You Need to Know

A local financial advisory firm near me recently caught my attention. I drive by their office almost every day, and one morning I noticed something new: they’re now owned by private equity. Out of curiosity, I looked them up online and found that their website listed thirteen different “specialties,” one of which was “working with physicians.”

I’ve never met a physician who has thirteen specializations, but it made me stop and think. Most clients don’t realize when their once-independent financial advisor becomes part of a private equity portfolio. The change happens quietly, yet it can have significant implications for the quality and motivation behind the advice you receive.

The Shift You Might Not Notice

Over the past few years, private equity ownership in advisory firms has grown dramatically. On the surface, little appears different. The same sign remains outside the office, the same advisor answers your calls, and the same friendly message arrives in your inbox announcing “new resources and opportunities for growth.”

But beneath the surface, things often change. Private equity firms operate with a clear goal: increase profitability and sell the business for a higher valuation within five to seven years. That focus can alter how advisory firms make decisions, the services they emphasize, and the products they recommend.

When ownership changes, so can the culture. Advisors may face pressure to grow assets faster, promote proprietary investments, or adopt standardized models that are easier to scale but less personal. Clients might not feel the shift right away, but over time the relationship can become more transactional than tailored.

What Private Equity Brings—and What It Takes Away

Private equity firms aren’t inherently bad. They are professional investors with a mandate to generate returns. The challenge arises when that objective starts to conflict with client-first advice. In some cases, growth and profitability targets can replace the original mission of serving clients’ best interests.

That shift can lead to higher internal fees, the promotion of in-house funds that generate more revenue for the firm, and less time devoted to thoughtful, customized financial planning. Advisors may find themselves balancing what’s best for their clients with what’s best for the firm’s next valuation.

It doesn’t mean your advisor suddenly has bad intentions. Many excellent advisors remain inside private equity–owned firms. But it does mean you should understand who ultimately controls the business and what their priorities are.

Questions Worth Asking

If you learn your financial advisory firm has sold to private equity, it’s perfectly reasonable to ask a few key questions:

• Who owns the firm now, and what is their investment horizon?
• Has your advisor’s compensation or incentives changed?
• Are certain products or funds now being recommended more often?
• If your advisor leaves the firm, will your relationship stay with them or remain tied to the company?

These questions are not confrontational. They are simply good due diligence just as you would ask similar questions in any other professional relationship where trust and transparency matter.

Why Independence Still Matters

When I founded Forward Thinking Wealth Management, I intentionally chose a different path. I wanted to remain independent so my only focus could be my clients. That meant building a structure that didn’t rely on corporate targets or investor timelines.

My firm uses a flat annual fee that covers everything: planning, investment management, and tax strategy. It’s simple, transparent, and aligned with my clients’ interests. And unlike the local firm that now lists thirteen specialties, I focus on one: physicians. This focus allows me to go deep rather than wide, offering guidance that fits the unique financial and professional realities of the people I serve.

Bringing It Home

If your financial advisor is now owned by private equity, it doesn’t automatically mean you need to leave. But it does mean you should take a closer look. The ownership change may be invisible from the outside, yet the motivations and incentives behind the scenes can shift dramatically.

The situation is like an iceberg. Above the surface, everything appears familiar, but the real risks may be hidden below. Understanding who owns your firm and how that ownership shapes the advice you receive can help you protect both your peace of mind and your long-term financial success.

If this resonates or if you know someone who has recently noticed changes at their advisory firm, share this article with them. A little transparency can go a long way toward ensuring your financial future stays on steady ground.