EP Wealth

KYCO: Know Your Company

Reveal Profile

24 October 2025

1) Overview of the Company

EP Wealth Advisors, LLC is a fee-only registered investment advisor and financial planning firm headquartered in Torrance, California, founded in 1999 by childhood friends Derek Holman and Brian Parker. The company operates over 54 offices across 19 states and manages approximately $40 billion in assets under management as of August 31, 2024. EP Wealth serves over 15,000 clients nationwide, ranging from individuals and families to businesses, trusts, estates, and charitable organizations.

The firm operates as a fee-only fiduciary, providing comprehensive wealth management services including financial planning, investment management, tax planning, estate planning, business planning, and family office services. EP Wealth requires a minimum investment of $500,000 in investable assets, though this may be waived at the firm’s discretion. The company is employee-owned, led, and operated, with over 490 employees and approximately 90 individuals holding equity stakes in the firm.

EP Wealth’s strategic growth has been fueled by an aggressive acquisition strategy, completing 48 acquisitions since inception, including 8 transactions in 2024 alone. The firm received minority investment backing from Wealth Partners Capital Group in 2017 and Berkshire Partners in 2020. In September 2024, EP Wealth announced that Ares Management Private Equity funds signed a definitive agreement to acquire a significant minority stake in the company, joining Berkshire Partners as co-investors. The firm issued a $400 million seven-year term loan and $100 million five-year revolving credit facility in 2024 to support future acquisitions and pay down existing debt.

2) History

EP Wealth Advisors, LLC was founded in 1999 in California by childhood friends Derek Holman and Brian Parker, who had worked together behind the counter at a San Diego frozen yogurt shop during high school. The firm began operations under the name Premier Financial Management before later becoming EP Wealth Advisors when the founders merged with veteran advisor Stephanie Enright. The company was established on the principle of providing objective, conflict-free financial planning and investment advice after the founders became dissatisfied with a wealth management industry that seemed to prioritize profits over people.

A critical milestone occurred in 2011 when Patrick Goshtigian became CEO, overseeing explosive growth across virtually every metric including assets under management, geographic presence, and team members. Under Goshtigian’s leadership, the firm expanded from modest beginnings with secondhand desks in an executive suite to a national presence. When EP Wealth reached the $1 billion assets under management milestone, the founders made the strategic decision to step back from day-to-day operations, recognizing that their passion lay in working with clients rather than managing a large organization.

In July 2023, the firm announced a CEO transition with Ryan Parker, who had joined EP Wealth in mid-2021 and became President in early 2022, ascending to the CEO role. Parker brought 25 years of industry experience, including previous CEO roles at Wealth Management for Citizens and Edelman Financial Services. Patrick Goshtigian transitioned to Executive Chairman, focusing on strategic initiatives and mergers and acquisitions while providing guidance to the new leadership.

The firm’s growth strategy has been significantly fueled by external capital partnerships. In 2017, EP Wealth received minority investment backing from Wealth Partners Capital Group, followed by Berkshire Partners in 2020. In September 2024, the firm announced that Ares Management Private Equity funds signed a definitive agreement to acquire a significant minority stake, joining Berkshire Partners as co-investors to support continued expansion.

EP Wealth’s expansion has been characterized by an aggressive acquisition strategy, completing 48 acquisitions since inception. The firm has systematically expanded its geographic footprint from California to over 19 states, maintaining its headquarters in Torrance, California, while establishing a national presence through strategic partnerships with like-minded entrepreneurial advisors who share the company’s client-centric approach.

3) Key Executives

Ryan Parker serves as Chief Executive Officer of EP Wealth Advisors since July 2023, having previously held the role of President from March 2022 to July 2023. Parker brings over 25 years of industry experience, including previous CEO roles at Wealth Management for Citizens and Edelman Financial Services. He earned a Bachelor of Arts in Political Science from the University of Michigan and completed Executive Education in Finance and Accounting from Stanford Graduate School of Business. Parker also served as Vice Chairman for Lefteris Acquisition Corp and held senior positions at LPL Financial, Russell Investments, Franklin Templeton Investments, and Putnam Investments.

Patrick Goshtigian, CFA holds the position of Executive Chairman, having transitioned from CEO in July 2023 after leading the firm since 2011. Prior to joining EP Wealth, Goshtigian served as Head of Nuveen Global Operations in Chicago and Los Angeles for Nuveen Investments and its affiliates. He earned a Bachelor of Science degree in Economics from the Massachusetts Institute of Technology, an MBA from the UCLA Anderson School of Management, and earned the Chartered Financial Analyst designation in 1995.

Derek Holman, CFP®, AIF® is Co-Founder and Managing Director of EP Wealth Advisors, having founded the firm in 1999 alongside childhood friend Brian Parker. Holman continues to serve clients while providing leadership guidance to the organization. He holds the Certified Financial Planner and Accredited Investment Fiduciary designations and remains actively involved in the firm’s strategic direction.

Brian Parker, CFP® serves as Co-Founder and Managing Director of EP Wealth Advisors, having established the company in 1999 with Derek Holman. Parker holds the Certified Financial Planner designation and graduated from the University of California, Santa Barbara. Like his co-founder, Parker continues to work directly with clients while maintaining his leadership role in the organization.

Jorge Bernal was appointed Chief Operating Officer in 2024, bringing over 30 years of experience in financial services and wealth management. Bernal previously served as chief operating officer and head of wealth management at SageView Advisory Group and held senior roles at Goldman Sachs, United Capital, Fidelity, and JPMorgan. He oversees the firm’s wealth advisory, marketing, investments, and wealth management services teams from the Seattle office.

Christopher Toumajian, CPA serves as Chief Financial Officer, overseeing capital planning, financial reporting, human resources, real estate, and M&A integration. Under his leadership, the firm has grown to nearly $40 billion in assets under management. Toumajian has been instrumental in creating and implementing strategic roadmaps, policies, and corporate governance as part of the executive committee.

Megan Glover holds the position of Chief People Officer, marking the firm’s first appointment to this C-suite role in August 2024. Glover brings over 20 years of experience in HR leadership, primarily within financial services. She previously served as managing director and chief human resources officer at SMBC MANUBANK and held leadership positions at PIMCO, Macquarie, and Moelis.

Mario Chilin, IACCP®, CCEP®, CSCP serves as Managing Director of Compliance and Risk, holding professional certifications including Investment Adviser Certified Compliance Professional, Certified Compliance and Ethics Professional, and Certified Securities Compliance Professional. Chilin oversees the firm’s regulatory compliance framework and risk management protocols.

Justin Mikhalevsky holds the role of Chief Product and Technology Officer, leading the firm’s technology initiatives and product development strategies. His position reflects EP Wealth’s focus on technological advancement and innovation in client service delivery.

Alan Berkshire serves as Chief Administrative Officer and General Counsel, providing legal oversight and administrative leadership for the organization. His role encompasses both operational administration and legal guidance for the firm’s expanding national operations.

4) Ownership

EP Wealth Advisors maintains a distinctive ownership structure as an employee-owned, led, and operated firm with approximately 90 individuals holding equity stakes in the company. The firm’s co-founders, Derek Holman and Brian Parker, established a foundation of meaningful employee ownership when they founded the company in 1999, maintaining this philosophy throughout their expansion. The company’s management team retains control over strategic and day-to-day decisions while operating with financial backing from institutional partners.

In September 2024, EP Wealth announced a significant evolution in its ownership structure when Ares Management Private Equity funds signed a definitive agreement to acquire a significant minority stake in the company. This transaction brings Ares alongside Berkshire Partners, which has served as a minority equity partner since 2020. The Ares investment was expected to close in October 2024, creating a three-way ownership structure where Ares, Berkshire Partners, and EP Wealth’s management team each hold non-majority, non-controlling positions.

The relationship with Berkshire Partners began in 2020 when the Boston-based private equity firm made a minority investment to support EP Wealth’s growth strategy. Prior to Berkshire’s involvement, Wealth Partners Capital Group took a stake in EP Wealth in 2017, marking the firm’s first institutional investment partnership. According to sources familiar with the transaction, Wealth Partners Capital Group is expected to exit its investment when the Ares transaction completes, while Berkshire Partners will retain its position.

EP Wealth’s leadership has emphasized that despite external investment, the firm’s co-founders Derek Holman and Brian Parker will maintain meaningful ownership in the organization and continue in their current roles as active advisors and leaders. This ownership continuity reflects the firm’s commitment to preserving its entrepreneurial culture and governance structure while accessing capital for growth initiatives. The management team’s retention of control over the company and its board of managers ensures operational independence despite the presence of institutional investors.

The firm’s ownership evolution supports its aggressive acquisition strategy, having completed 48 acquisitions since inception, including 8 transactions in 2024 alone. To facilitate future expansion, EP Wealth secured a $400 million seven-year term loan and $100 million five-year revolving credit facility in 2024, receiving credit ratings from S&P Global Ratings and Moody’s that reflect the firm’s growth trajectory and capital structure. This financial architecture positions EP Wealth for continued expansion while maintaining its employee-centric ownership model and management control.

5) Financial Position

EP Wealth Advisors has established a solid financial foundation, managing approximately $40 billion in assets under management as of August 31, 2024, representing substantial growth from its founding in 1999. The firm’s revenue model is based on a fee-only structure with a tiered fee schedule that decreases as client assets grow, ranging from 1.00% for the first $1 million to 0.55% for assets above $10 million. This structure provides predictable recurring revenue streams while aligning the firm’s financial success with client asset growth and market performance.

In September 2024, EP Wealth secured a $500 million debt package consisting of a $400 million seven-year term loan and a $100 million five-year revolving credit facility. Credit rating agencies S&P Global Ratings and Moody’s assigned the firm speculative-grade ratings of ‘B-‘ and ‘B2,’ respectively, both with stable outlooks. The firm’s pro forma adjusted debt-to-EBITDA ratio is expected to increase to 4.9x from 4.4x, representing a highly leveraged capital structure that supports the company’s aggressive acquisition strategy while creating elevated financial risk.

The debt financing was structured to refinance existing obligations and provide capital for future growth initiatives, particularly the firm’s ongoing acquisition program. EP Wealth has completed 48 acquisitions since inception, including 8 transactions in 2024 alone, requiring substantial capital investment for integration and expansion activities. The revolving credit facility provides additional flexibility for opportunistic acquisitions and working capital needs as the firm continues to expand its geographic footprint and service capabilities.

EP Wealth’s financial growth has been supported by strategic institutional partnerships. In September 2024, Ares Management Private Equity funds signed a definitive agreement to acquire a significant minority stake in the company, joining existing minority partner Berkshire Partners. This investment provides additional capital resources while maintaining the firm’s employee-owned structure and management control. The three-way ownership arrangement ensures no single investor holds majority control, preserving the firm’s entrepreneurial culture and decision-making autonomy.

The firm’s substantial asset base of $40 billion generates significant fee income, though the company faces typical wealth management industry challenges including market sensitivity and client concentration risks. The fee-only model eliminates commission-based revenue conflicts but creates dependence on asset-based fees that fluctuate with market performance and client portfolio values. The firm’s minimum investment requirement of $500,000 in investable assets focuses the business on high-net-worth clients, providing revenue stability but also creating sensitivity to economic conditions affecting affluent client segments.

EP Wealth’s financial position reflects the broader wealth management industry’s capital-intensive growth model, where expansion requires significant investment in technology, personnel, office infrastructure, and acquisition financing. The firm’s rapid growth to over 490 employees across 54 offices in 19 states demonstrates successful scaling but also creates ongoing operational costs and complexity that must be managed alongside debt service obligations and integration expenses from recent acquisitions.

6) Market Position

EP Wealth Advisors has established itself as a significant player in the registered investment advisor (RIA) market, ranking among the largest independent wealth management firms in the United States with approximately $40 billion in assets under management. The firm’s consistent recognition on prestigious industry lists demonstrates its market standing, including seven consecutive years on Barron’s Top 100 RIA Firms list, ranking #13 in the most recent edition. EP Wealth has also been featured on Forbes Top RIA Firms lists for 2024, USA Today’s Best Financial Advisory Firms list for three consecutive years, and the Inc. 5000 list of fastest-growing private companies for six straight years.

The firm operates in the highly competitive wealth management sector, competing with both independent RIAs and larger financial institutions for high-net-worth clients. EP Wealth’s differentiation strategy focuses on its fee-only fiduciary model, comprehensive service offerings, and nationwide presence through 54 offices across 19 states. The firm’s minimum investment requirement of $500,000 positions it in the affluent client segment, competing with regional wealth management firms, independent RIAs, and the private wealth divisions of major financial institutions.

EP Wealth’s market expansion strategy has been characterized by aggressive acquisition activity, completing 48 transactions since inception to build national scale and geographic diversification. This acquisition-driven growth model has enabled the firm to compete effectively against larger institutional competitors while maintaining the personalized service approach valued by high-net-worth clients. The firm’s ability to integrate acquired practices successfully while preserving client relationships has contributed to its market position and growth trajectory.

The firm’s technology infrastructure and service platform provide competitive advantages in client acquisition and retention. EP Wealth utilizes advanced technology solutions including cloud-based file sharing, integrated CRM systems, and sophisticated cybersecurity protocols to deliver institutional-quality service while maintaining boutique-style client relationships. The recent appointment of a Chief Product and Technology Officer reflects the firm’s commitment to technological advancement as a competitive differentiator in the evolving wealth management landscape.

EP Wealth’s market position benefits from industry trends favoring independent RIAs over traditional brokerage and bank-based wealth management models. The firm’s fee-only structure and fiduciary obligations align with increasing client demand for transparent, conflict-free investment advice. The regulatory environment has generally favored RIA growth through initiatives such as the Department of Labor’s fiduciary rule and increased scrutiny of commission-based compensation models in the wealth management industry.

The firm’s national presence provides competitive advantages in serving clients with multi-state financial needs while offering local accessibility through regional offices. This geographic diversification also provides market risk mitigation compared to firms concentrated in specific regional markets. EP Wealth’s scale enables investment in technology, research capabilities, and specialized expertise that smaller independent firms may not be able to access, while maintaining the personalized service model that differentiates independent RIAs from larger institutional competitors.

EP Wealth faces competitive pressures from multiple sources, including consolidation among independent RIAs, technology-driven robo-advisory platforms, and increased competition from traditional financial institutions expanding their wealth management capabilities. The firm’s substantial debt leverage creates pressure to maintain growth rates and profitability levels to service debt obligations while continuing to invest in competitive capabilities and acquisition opportunities.

7) Legal Claims and Actions

Based on the available sources, EP Wealth Advisors, LLC has maintained a relatively clean regulatory record over the past decade, with limited public legal actions or enforcement proceedings. The firm’s Form CRS disclosure states that “as a firm, EP Wealth Advisors, LLC does not have any legal or disciplinary history.” However, several employment-related legal matters and general business disputes have emerged that warrant analysis from an institutional due diligence perspective.

The most significant legal action identified involves an employment dispute filed in March 2024 by Ryan T. Ragoza against EP Wealth Advisors Admin LLC, a Delaware limited liability company related to EP Wealth. The case, filed in Los Angeles County Superior Court, alleges multiple violations of the California Fair Employment and Housing Act (FEHA) and wrongful termination claims. The matter was subsequently moved to binding arbitration through a stipulation and order filed in April 2024, with the case placed in special status pending completion of arbitration proceedings. The arbitration status reflects a common approach to employment disputes in the wealth management industry, though the specific nature of the allegations and their resolution remain confidential due to the arbitration process.

An additional employment-related matter surfaced through court records involving Beach District Surgery Center v. EP Wealth Advisors, LLC, filed in February 2024 in federal court. This case involves labor and Employee Retirement Income Security Act (ERISA) claims, with the defendant seeking removal from state to federal court. The matter was subsequently remanded back to Los Angeles County Superior Court in April 2024, indicating jurisdictional disputes over the nature of the claims. The underlying facts and resolution of this ERISA-related dispute are not detailed in the available court records.

A third legal matter from 2021 involved EP Wealth Advisors as plaintiff against Mark Farrelly and Cairn Investment Group Inc., filed in San Mateo County Superior Court for unlimited business tort and unfair business practice claims. This case was ultimately dismissed with prejudice in August 2021, suggesting either a settlement resolution or successful defense of the claims. The matter appears to involve competitive business practices or potential advisor recruitment disputes, which are common in the wealth management industry during periods of rapid expansion.

The regulatory compliance landscape for EP Wealth reflects the broader industry focus on anti-money laundering (AML) and know-your-customer (KYC) requirements. The firm’s Chief Compliance Officer, Mario Chilin, holds professional certifications including Investment Adviser Certified Compliance Professional (IACCP), Certified Compliance and Ethics Professional (CCEP), and Certified Securities Compliance Professional (CSCP). Chilin has participated in industry compliance forums and regulatory preparation workshops, indicating active engagement with evolving compliance requirements.

From a pattern analysis perspective, the limited number of legal actions over EP Wealth’s 25-year operating history suggests effective risk management and compliance oversight relative to the firm’s substantial growth through acquisitions. The employment-related disputes appear consistent with typical workforce management challenges during rapid organizational expansion, particularly given the firm’s completion of 48 acquisitions since inception and recent growth to over 490 employees. The resolution of these matters through arbitration and dismissal indicates the firm’s preference for confidential dispute resolution, which is standard practice in the wealth management industry.

The ERISA-related litigation may reflect the complexity of employee benefit plan administration during the firm’s significant growth phase and multiple acquisition integrations. Such matters often arise during organizational transitions and benefit plan consolidations, particularly when employee benefit obligations transfer between related entities during corporate restructuring.

8) Recent Media

Media coverage of EP Wealth Advisors between 2023 and 2024 has been overwhelmingly characterized by its aggressive acquisition strategy, significant capital market activities, and numerous industry accolades, with an absence of material adverse reports. In September 2024, the firm announced that Ares Management signed a definitive agreement to acquire a significant minority stake, joining existing minority equity partner Berkshire Partners. The deal, expected to close in October 2024, is intended to provide additional capital for mergers and acquisitions, talent acquisition, and technology investments while ensuring EP Wealth’s management team retains control. This equity partnership announcement followed EP Wealth’s issuance of a $500 million debt package in September 2024, consisting of a $400 million seven-year term loan and a $100 million five-year revolving credit facility, to refinance existing debt and fund future growth. Credit rating agencies S&P Global Ratings and Moody’s assigned the firm speculative-grade ratings of ‘B-‘ and ‘B2,’ respectively, both with stable outlooks.

The firm’s expansion has been a primary focus of media reports. In 2024, EP Wealth completed eight acquisitions, ranking it among the most active RIA acquirers for the year. These transactions included the January 2024 announcement of its acquisition of Executive Wealth Management, a Michigan-based RIA with approximately $1.6 billion in assets, marking EP Wealth’s largest deal to date. Subsequent 2024 acquisitions included San Francisco-based Peninsula Wealth with over $660 million in assets in April; Kentucky-based AlphaMark Advisors with approximately $385 million in assets in April; Southern California-based NBS Financial Services with over $230 million in assets in April; Idaho-based Buffington Mohr McNeal with nearly $900 million in assets in June; Chicago-based Rappaport Reiches Capital Management, a majority-women RIA with over $1.2 billion in assets, in July; and Santa Fe-based Better Money Decisions with approximately $370 million in assets in August.

This acquisition pace continued from previous years, with media outlets reporting on multiple deals throughout 2023 and 2024. In 2024, the firm acquired Atlanta-based CornerCap, which managed $1.1 billion. In October 2023, EP Wealth acquired Arizona-based Foothills Financial Planning & Wealth Management and California-based Marble Capital, which added a combined $191 million in assets. CEO Ryan Parker has been frequently quoted discussing the firm’s M&A strategy, which he described as talent-led rather than geography-led, with a focus on partnering with like-minded, planning-first entrepreneurs.

The firm’s growth has been accompanied by strategic C-suite appointments. In August 2024, EP Wealth announced it had hired Justin Mikhalevsky, formerly of Kestra, for the newly created position of Chief Product and Technology Officer. This followed the August 2024 appointment of Megan Glover as the firm’s first Chief People Officer, an executive with over two decades of human resources experience at firms including SMBC MANUBANK and PIMCO.

EP Wealth has also received consistent recognition from industry publications. In 2024, Barron’s ranked the firm #13 on its “Top 100 RIA Firms” list, marking its seventh consecutive year of inclusion. The firm was also named to the Forbes “Top RIA Firms” lists in 2024 and USA Today’s “Best Financial Advisory Firms” list for three consecutive years through 2024. Additional accolades include being named to the Inc. 5000 list of fastest-growing private companies for six straight years through 2024 and being ranked #7 on RIA Channel’s 2024 “Top 50 Wealth Managers” list. Regionally, the firm was recognized as a “Best Place to Work” by the Los Angeles Business Journal, Orange County Business Journal, Denver Business Journal, and Salt Lake City Tribune between 2023 and 2024.

9) Strengths

Extensive Industry Recognition and Awards

EP Wealth Advisors has established itself as a consistently recognized leader in the wealth management industry, earning prestigious accolades from multiple reputable publications. The firm has been included on Barron’s Top 100 RIA Firms list for seven consecutive years through 2024, ranking #13 in the most recent edition. Additionally, EP Wealth has been featured on the Forbes Top RIA Firms lists for 2024, and earned recognition on USA Today’s Best Financial Advisory Firms list for three consecutive years through 2024, ranking #11 in the most recent listing for firms with over $5 billion in assets under management. The firm has also been included on the Inc. 5000 list of fastest-growing private companies for six straight years through 2024 and was ranked #7 on RIA Channel’s 2024 Top 50 Wealth Managers list.

Comprehensive Fee-Only Fiduciary Model

EP Wealth operates under a transparent fee-only structure, ensuring complete alignment with client interests by eliminating commission-based compensation conflicts. As a registered investment advisor with the SEC, the firm maintains fiduciary obligations that legally require advisors to act in clients’ best interests at all times. The fee-only model means advisors do not receive commissions from selling investment products and are not incentivized to recommend specific investments for personal gain, providing clients with objective investment recommendations. This structure is supported by a clear, tiered fee schedule based on assets under management, with fees decreasing as client assets grow, ranging from 1.00% for the first $1 million to 0.55% for assets above $10 million.

Sophisticated Technology Infrastructure and Cybersecurity

The firm has invested significantly in advanced technology infrastructure to support secure operations and client service delivery. EP Wealth utilizes Egnyte’s cloud-based file sharing platform to protect confidential client data and support secure file sharing across its remote advisor network, implementing granular access controls and real-time auditing capabilities to meet SEC and GLBA compliance requirements. The technology stack includes sophisticated tools such as Azure Active Directory for identity management, Zscaler for security, and integrated CRM systems that enable centralized client data management while maintaining strict privacy protocols. The firm conducted cybersecurity education webinars for clients in 2024, demonstrating its commitment to both internal security and client education on digital safety.

Proven Acquisition Integration Capabilities

EP Wealth has developed exceptional capabilities in merging acquired firms seamlessly while preserving client relationships and advisor autonomy. The firm has completed 48 acquisitions since inception, including 8 transactions in 2024 alone, demonstrating consistent execution of its partnership-driven growth strategy. The company maintains dedicated integration teams that focus on smooth client onboarding through coordinated communications, documentation, and technology transitions. Acquired firms retain their advisory teams while gaining access to EP Wealth’s expanded suite of services, including enhanced investment research, estate and tax planning expertise, and advanced technology solutions. The firm’s approach emphasizes cultural alignment and shared values rather than pure financial metrics, contributing to successful long-term integrations.

Strong Capital Structure and Financial Backing

EP Wealth maintains a robust capital structure supported by sophisticated institutional partnerships that provide growth capital while preserving management control. In September 2024, Ares Management Private Equity funds signed a definitive agreement to acquire a significant minority stake, joining existing minority partner Berkshire Partners in a three-way ownership structure where no single investor holds majority control. The firm secured a $500 million debt package in 2024, consisting of a $400 million seven-year term loan and $100 million five-year revolving credit facility, receiving credit ratings from both S&P Global Ratings and Moody’s. This capital structure provides substantial resources for continued expansion while maintaining the firm’s employee-owned culture and management independence.

Specialized Expertise in Complex Wealth Management

The firm has developed specialized capabilities in managing sophisticated wealth scenarios, including concentrated equity positions, real estate-heavy portfolios, family office-style needs, and multi-generational planning. EP Wealth offers advanced strategies such as DST/1031 exchanges for clients seeking to defer capital gains taxes, options strategies for managing concentrated stock positions, and comprehensive ESG investing programs partnering with respected investment managers like Calvert. The firm provides Family Office Services for clients with $10+ million in investable assets, featuring integrated teams of advanced wealth strategists, senior estate planners, and portfolio strategists working collaboratively from initial engagement.

Comprehensive Professional Development and Credentialing

EP Wealth maintains high professional standards through extensive credentialing requirements and ongoing education programs. The firm’s advisors hold prestigious designations including Certified Financial Planner (CFP®), Chartered Financial Analyst (CFA), Certified Public Accountant (CPA), and Certified Divorce Financial Analyst (CDFA®), among others. All CFP® professionals at EP Wealth must meet rigorous education, examination, experience, and ethics requirements, ensuring clients work with highly qualified financial planning experts. The firm’s commitment to professional development is evidenced by its dedicated Wealth Management Services team comprising 63 specialists, including 33 CFPs, 12 EAs/CPAs, 9 estate professionals, and 3 CDFAs, providing subject matter expertise across complex financial planning areas.

National Scale with Local Presence

EP Wealth has successfully built a national platform while maintaining personalized, local service delivery across its client base. The firm operates over 54 offices across 19 states, providing clients with local accessibility and face-to-face service capabilities regardless of their geographic location. This extensive geographic presence allows the firm to serve diverse client needs while maintaining consistency in service quality and investment management approaches. The national scale provides operational efficiencies and resource sharing while preserving the boutique experience that clients value in their advisor relationships.

Strong Client Retention and Satisfaction Metrics

EP Wealth demonstrates exceptional client satisfaction through comprehensive testimonials and long-term client relationships spanning multiple decades. Client feedback consistently highlights the firm’s professional competence, accessibility, and personalized approach, with many clients noting relationships extending 17-18 years. The firm’s growth to over 15,000 clients nationwide reflects both strong client retention and successful referral generation, indicating high satisfaction levels and trust in the firm’s services. Client testimonials emphasize the firm’s ability to navigate complex life transitions, provide clear communication about market conditions, and deliver consistent investment performance aligned with client goals.

10) Potential Risk Areas for Further Diligence

Aggressive Acquisition Integration Complexity Risk

EP Wealth Advisors has completed 48 acquisitions since inception, including 8 transactions in 2024 alone, representing an extremely aggressive expansion strategy that introduces significant operational complexity and integration risks. The firm’s rapid growth through acquisition has expanded its footprint to over 54 offices across 19 states, creating substantial challenges in maintaining consistent service delivery, technology integration, and cultural alignment across diverse geographic markets. The company’s approach of preserving local identity while implementing centralized systems may create operational inefficiencies and communication gaps, particularly when managing acquired firms with different technology platforms, compliance procedures, and client service protocols. The sheer volume of transactions requires extensive management attention and resources that could potentially distract from core client service delivery and organic growth initiatives.

Complex Ownership Structure and Control Risk

The firm’s three-way ownership structure involving Ares Management, Berkshire Partners, and EP Wealth’s management team creates potential governance complexity and decision-making challenges. While management retains control, the presence of two institutional investors with different investment timelines and strategic priorities could lead to conflicts over capital allocation, acquisition strategy, and operational decisions. The September 2024 Ares transaction created a new minority partner alongside existing investor Berkshire Partners, which may complicate board dynamics and strategic planning processes. The firm’s employee ownership model, with approximately 90 individuals holding equity stakes, adds another layer of complexity to governance and succession planning, particularly as the firm continues to grow and integrate new partners through acquisitions.

Substantial Debt Leverage and Credit Risk

EP Wealth’s recent issuance of a $400 million seven-year term loan and $100 million five-year revolving credit facility significantly increases the firm’s debt burden and financial risk profile. Credit rating agencies S&P Global Ratings and Moody’s assigned speculative-grade ratings of ‘B-‘ and ‘B2,’ respectively, indicating elevated credit risk and potential vulnerability to economic downturns or market volatility. The firm’s pro forma adjusted debt-to-EBITDA ratio is expected to increase to 4.9x from 4.4x, representing a highly leveraged capital structure that could constrain financial flexibility and limit the firm’s ability to respond to unexpected challenges or investment opportunities. This leverage level may also impact the firm’s ability to continue its aggressive acquisition strategy if credit markets tighten or if the firm’s cash flow generation declines due to market conditions or client outflows.

Key Person Dependency and Succession Planning Risk

Despite the firm’s substantial scale, EP Wealth maintains significant dependence on key leadership figures, including co-founders Derek Holman and Brian Parker, who continue to play active roles as advisors and leaders while maintaining meaningful ownership positions. The relatively recent CEO transition in July 2023 from Patrick Goshtigian to Ryan Parker, while managed professionally, highlights the ongoing evolution of the firm’s leadership structure and potential succession challenges. The firm’s growth strategy is heavily dependent on the expertise and relationships of acquired advisors, creating concentration risk if key personnel from major acquisitions choose to leave the organization. The employee ownership model, while creating retention incentives, also complicates succession planning as equity holders may have different views on strategic direction and liquidity preferences.

Employment Litigation and Human Resources Risk

The firm faces ongoing employment-related legal challenges, including a March 2024 dispute involving allegations under the California Fair Employment and Housing Act (FEHA) and wrongful termination claims, which was moved to binding arbitration. An additional ERISA-related matter involving Beach District Surgery Center highlights potential complexities in employee benefit plan administration during the firm’s rapid growth and acquisition integration processes. The firm’s expansion to over 490 employees across 19 states creates substantial human resources management challenges, particularly in maintaining consistent employment practices, compensation structures, and workplace culture across diverse geographic markets with varying state employment laws. The recent appointment of the firm’s first Chief People Officer in August 2024 suggests recognition of these challenges, but also indicates that comprehensive HR infrastructure may be relatively new and still developing.

Cybersecurity and Data Protection Vulnerabilities

As a wealth management firm handling sensitive financial information for over 15,000 clients across multiple states, EP Wealth faces elevated cybersecurity risks that could result in significant regulatory penalties, client losses, and reputational damage. The firm’s distributed technology infrastructure across 54 offices and multiple acquired entities creates numerous potential attack vectors and security vulnerabilities that require sophisticated coordination and monitoring. While the firm has invested in advanced technology solutions such as Egnyte’s cloud-based file sharing platform and Azure Active Directory, the rapid integration of acquired firms’ technology systems may create security gaps and compliance challenges. The increasing sophistication of cyber threats targeting financial services firms, combined with the firm’s high-profile status and substantial client assets, makes cybersecurity a critical ongoing risk that requires continuous investment and vigilance.

Regulatory Compliance Coordination Risk

EP Wealth’s multi-state operations across 19 states subject the firm to varying regulatory requirements and examination schedules from multiple state securities regulators in addition to SEC oversight. The firm’s rapid expansion through acquisitions may strain compliance resources and create challenges in maintaining consistent regulatory standards across all locations. The integration of acquired firms with different compliance histories, procedures, and regulatory relationships requires extensive coordination to ensure unified standards and avoid regulatory conflicts. The firm’s substantial growth in assets under management and employee count may also trigger increased regulatory scrutiny and examination frequency, requiring enhanced compliance infrastructure and documentation systems.

Market Concentration and Economic Sensitivity Risk

The wealth management industry’s dependence on market performance and client asset values creates inherent vulnerability to economic downturns and market volatility that could significantly impact EP Wealth’s fee-based revenue model. The firm’s growth strategy assumes continued market appreciation and client asset accumulation, but prolonged market declines could reduce assets under management and pressure fee income while fixed costs related to office leases, employee compensation, and debt service continue. The firm’s substantial debt leverage amplifies this risk, as reduced cash flow during market downturns could strain the firm’s ability to service its debt obligations and maintain acquisition activity. Additionally, economic uncertainty could impact client confidence and lead to asset outflows, particularly among high-net-worth clients who may have alternative investment options.

Technology Integration and Infrastructure Risk

The firm’s rapid growth through acquisitions creates substantial technology integration challenges as it works to consolidate multiple firms’ technology platforms, client management systems, and operational processes. Each acquired firm brings different technology infrastructure, software licenses, and client data management systems that must be integrated while maintaining service continuity and regulatory compliance. The appointment of Justin Mikhalevsky as Chief Product and Technology Officer in August 2024 reflects the firm’s recognition of these challenges, but also indicates that comprehensive technology leadership may be relatively new. The complexity of managing client data, investment platforms, and communication systems across 54 offices and multiple custodial relationships requires sophisticated technology architecture and ongoing investment that could strain resources and create operational vulnerabilities.

Standard Emerging Growth Company Considerations

As a rapidly expanding firm with recent institutional investment, EP Wealth faces typical growing company challenges including the need to develop scalable operational systems, maintain quality control across expanded operations, and balance growth investments with profitability targets. The firm’s aggressive acquisition timeline may pressure management to complete transactions quickly without sufficient integration planning or cultural assessment.

Broader Market Volatility and Industry Regulatory Change Impacts

The wealth management industry remains subject to evolving regulatory requirements, changing fee structures, and increased competition from both traditional and technology-driven service providers. Economic downturns or significant market volatility could impact client asset values and fee revenue while potentially accelerating client redemptions or service provider consolidation within the industry.

Sources

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