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Putnam Lovell Private Equity, which invests in asset management firms, has acquired a minority stake in PowellJohnson, the two companies announced Monday. Terms of the deal were not disclosed.

However, PowellJohnson Chief Executive Officer Jeff Powell said his firm, based in Nashville, would use the capital to open offices in other major cities over the next few years. As to why Putnam Lovell decided to invest in PowellJohnson, which serves affluent investors and was founded only last year, James Minnick, president of Putnam Lovell Private Equity, said PowellJohnson’s fee-based advisory approach, rather than a transaction-based approach, is the wave of the future.

As part of the transaction, Minnick and Daniel Kang, a principal with Putnam Lovell, will join PowellJohnson’s board of directors.

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