Avalon Advisors

Avalon Advisors

Industry: Asset Management

Investment Date: March 2008

Headquarters: Houston, TX

Website: www.avalonadvisors.com

Investment Overview:

Avalon Advisors (“Avalon”) is a Houston-based asset management firm that manages equity, fixed income and balanced portfolios for wealthy families, endowments, foundations and trusts.  The company provides a high level of customer service and customized solutions for clients in a cost effective and tax efficient manner.  Avalon was founded in April 2001 and is led by its founding partners, Robert Gauntt, Henry Latrigue, Willie Langston, and Kevin Lilly.  Avalon has grown into one of the largest independent asset management firms in Texas with approximately $6.1 billion in assets under management.  In 2011, The Carlyle Group made a significant minority investment in Avalon.  The Carlyle transaction allowed an attractive return on our original investment, while continuing as a minority shareholder.  Carlyle later sold their interest to the Cynosure Group, a Salt Lake City, Utah-based investment firm, and a group of large family offices that now collectively own Avalon with Platform and Avalon's founders and employees.

 

 Transaction Background:

The Platform team had a relationship with Avalon since its inception in 2001. In late 2007, we approached Avalon’s founders and quickly agreed that a partnership could be mutually beneficial. We closed our investment in early 2008, providing partial liquidity to Avalon’s founders and an opportunity to extend ownership to other Avalon employees. Platform’s role in the partnership is to provide guidance on the strategy and necessary infrastructure to continue to grow the company.