Executive Summary: A Strategic Reversion to Private Ownership
In a significant development for the independent wealth management sector, Lincoln Investment Capital has officially transitioned back to full private ownership. The firm has successfully completed a management and family-led buyout, ending a multi-year partnership with the private equity titan New Mountain Capital. This transition marks the return of Lincoln Investment to a structure defined by family and advisor-shareholder control, effectively concluding a strategic growth chapter that began in 2020.
Under the stewardship of the Forst family, Lincoln Investment is now positioned as a fully independent entity. The divestment by New Mountain Capital signals not merely a financial exit, but the completion of a targeted operational roadmap that saw the wealth manager modernize its technological backbone, overhaul its leadership structure, and significantly expand its fee-based asset management capabilities.
The Chronology of Growth: From 2020 to 2026
The partnership between New Mountain Capital and Lincoln Investment was defined by a methodical approach to value creation. When New Mountain first acquired a stake in the business in 2020, the objective was clear: to transform a traditional, family-owned financial firm into a scalable, high-tech powerhouse capable of competing in an increasingly digitized wealth management landscape.
Phase 1: The Foundation (2020–2023)
The initial years of the partnership focused on identifying friction points within the company’s operating systems. Recognizing that the firm’s legacy infrastructure could potentially hinder long-term growth, both parties embarked on a rigorous technological upgrade. This involved shifting away from manual processes toward automated, advisor-centric platforms designed to improve client outcomes and back-office efficiency.
Phase 2: Structural Transformation (2024–2025)
As the technological foundation solidified, the focus shifted toward the firm’s human capital. Understanding that sustained growth requires robust succession planning, the partnership initiated a comprehensive overhaul of the senior leadership team. This phase was characterized by an aggressive recruitment drive, not just for executive leadership but for the advisor base itself, aimed at broadening the firm’s reach and depth in the market.
Phase 3: The Climax and Transition (2026)
The culmination of this partnership arrived in the summer of 2026. In June, the company appointed Kathy Leckey as Chief Executive Officer, a move widely interpreted as the final step in preparing the firm for its return to independence. With the succession plan firmly in place and the operational upgrades yielding measurable results, the Forst family, alongside advisor shareholders, moved to consolidate ownership. By late 2026, the transition was finalized, marking the start of a new, fully independent era.
Supporting Data: Measuring the Impact of Private Equity Partnership
The effectiveness of the partnership between New Mountain Capital and Lincoln Investment is best evidenced by the firm’s financial trajectory over the six-year period. By prioritizing fee-based operations and technological scalability, the firm achieved growth metrics that significantly outpaced many of its mid-market peers.
- Growth in Fee-Based Assets: During the tenure of New Mountain’s investment, Lincoln Investment saw its fee-based assets surge by approximately 75%. This transition from commission-based revenue to recurring, fee-based revenue is a gold standard in the industry, offering greater predictability and higher valuation multiples.
- Total Assets Under Management (AUM): Reflecting both market appreciation and organic growth, the firm’s total client assets climbed to approximately $63 billion.
- Operational Efficiency: Investment in the firm’s technology set-up was not merely an IT expense; it was a strategic investment in "scalability." By reducing the manual burden on advisors, the firm successfully increased its advisor recruitment rate, allowing the company to handle larger asset volumes without a proportional increase in overhead costs.
Official Perspectives: Reflections on a Productive Partnership
The parting of ways has been characterized by mutual professional respect, with both sides acknowledging the symbiotic nature of the investment period.
Ed Forst’s Assessment
Ed Forst, Executive Chairman of Lincoln Investment, underscored the strategic value provided by the partnership. "New Mountain has been a valued partner to Lincoln Investment," Forst stated. "Their support helped us advance important investments in our platform. We are grateful for their partnership and excited to begin this next chapter as a fully independent, advisor- and family-owned firm."
CEO Kathy Leckey’s Outlook
Kathy Leckey, who took the helm during the final stages of the transition, emphasized the forward-looking nature of the company’s new status. "This milestone reflects the progress our team has made in building a more modern, scalable platform for our advisors and clients," Leckey remarked. "With New Mountain’s investment, partnership, and strategic guidance, we strengthened our technology, expanded our capabilities, and positioned the business for continued growth."
Implications for the Wealth Management Industry
The conclusion of this deal holds broader implications for the private equity-backed wealth management model.
1. The "Operational Value Add" Model
For years, skeptics argued that private equity involvement in wealth management was purely "financial engineering"—a quest for leverage and quick exits. However, the Lincoln Investment case demonstrates a different model: the "Operational Value Add." By focusing on software, senior management recruitment, and fee-structure evolution, New Mountain demonstrated that private equity can indeed act as a catalyst for long-term institutional modernization.
2. The Return to Independence
The fact that the firm has returned to family and advisor-shareholder control suggests a growing trend in the industry where firms use private equity as a "bridge" to reach a certain scale, rather than as a permanent owner. By regaining independence, Lincoln Investment gains the agility to make long-term decisions that may not always align with the short-to-medium-term exit horizons required by private equity funds.
3. The Future of Advisor Recruitment
With the firm now fully in the hands of its own advisors and the Forst family, the culture of the company is likely to shift toward long-term equity retention. This structure serves as a powerful recruitment tool, as top-tier advisors are increasingly seeking firms where they can own a piece of the pie and have a seat at the table in terms of governance.
Conclusion: Looking Ahead
As Lincoln Investment steps into this new, independent chapter, the challenges ahead will center on maintaining the momentum established under the New Mountain partnership. With $63 billion in assets under management and a modernized technological suite, the firm is well-equipped to navigate the complexities of the current macroeconomic environment.
For New Mountain Capital, the exit marks a successful realization of its investment thesis, allowing the group—which oversees approximately $60 billion in assets across private equity, credit, and real estate—to redeploy capital into new ventures. For Lincoln Investment, the journey from 2020 to 2026 serves as a blueprint for how a legacy firm can successfully pivot toward the future, proving that with the right strategic guidance, the traditional wealth management model can be radically transformed while maintaining the core values of family and advisor partnership.
The path forward for Lincoln Investment will likely involve further leveraging its scalable platform to drive organic growth. In an industry defined by consolidation, the firm’s return to independence provides it with a distinct competitive advantage: the ability to operate as a nimble, family-owned entity with the institutional-grade technology of a much larger corporation. The industry will be watching closely to see how the firm leverages this unique position in the years to come.
