Kanaly Trust, a Houston wealth manager with approximately $2 billion in assets under management, announced it will be acquired by Lovell Minnick Partners, a private equity firm that provides buyout and growth capital to companies in the financial services industry.

“We are excited to join with Lovell Minnick … as we continue to pursue the vision of outstanding and non-conflicted client service that my father believed in 37 years ago,” Drew Kanaly, Kanaly Trust's chairman, said in a statement.

Jeff Kanaly, its vice chairman, added, “Lovell Minnick has the expertise and resources to help Kanaly Trust get to the next level, and it is comforting to know that Kanaly Trust has a succession plan that will benefit our clients and personnel for years to come.”

Kanaly Trust has offered independent investment advice to its clients for decades by combining financial planning, trust and estate services with a best-of-breed approach to outside manager selection.

Proceeds from the transaction, which is expected to close in the fourth quarer, will be used to provide liquidity to certain existing shareholders and promote future company growth. The Kanaly family along with members of the senior management team of Kanaly Trust will retain a material investment in the firm and continue their focus on clients.

Drew Kanaly will remain chairman of Kanaly Trust and Jeff Kanaly will serve as vice chairman. Lovell Minnick’s Bill Rankin is expected to join Kanaly Trust as CEO effective at the close of the transaction. Rankin has extensive experience in the wealth management industry, and was most recently president and CEO of Shelterwood Financial, according to Lovell Minnick. He also has held executive roles at Rockefeller & Co., Atlantic Trust, Stein Roe Investment Counsel and Mellon Bank.

From offices in the Philadelphia and Los Angeles areas, Lovell Minnick has raised over $850 million in committed capital from qualified private and institutional investors and has completed investments in over 30 companies, the company said. Portfolio companies of Lovell Minnick operate in various areas of the global financial services industry including asset management, financial product distribution, commercial and private banks, outsourced administration services, securities brokerage, investment banks and financial consulting.