By Andrew Welsch

Lido Advisors, a Los Angeles-based wealth management firm that manages about than $30 billion of client assets, sold a majority stake to investment funds managed by HPS Investment Partners, a global alternative investment firm.

HPS will soon become a part of asset-management giant BlackRock, which announced in December it planned to buy HPS for $12 billion. The acquisition is expected to close in mid-2025 and would bolster BlackRock's private markets business.

HPS joins Lido's existing backer, Charlesbank Capital Partners, which sold some of its stake in Lido but remains invested in the wealth manager, says Ken Stern, president of Lido.

Lido also has 135 employees who own equity in the company.

Stern says HPS is a good partner for Lido because of its expertise within financial services. "I've been so impressed with the quality of their teams and sophistication," he says. "That is what I want when I am thinking about who I can call for insights. That is invaluable."

Lido is aiming to further build its capabilities to serve clients' tax, estate, trusts, and investment needs. Stern says the company is also trying to scale up, adding that he'd like to see it hit $100 billion in assets under management.

The firm has been growing organically and through acquisitions of other registered investment advisor firms, which have boosted Lido's capabilities, assets, and geographic footprint. In December, it acquired Avitas Wealth Management, a Los Angeles-based firm that had $1.1 billion. In October, Lido bought Pegasus Partners, a Mequon, Wis.-based RIA with more than $3 billion in assets.

"One way to ensure we have the right team members to work with clients is through acquisition," Stern says.

      Founded in 1999, Lido Advisors is ranked No. 23 on Barron's   Top 100 RIAs for 2024. 

Write to Andrew Welsch at andrew.welsch@barrons.com

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May 22, 2025 16:01 ET (20:01 GMT)

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