Two private equity-owned wealth managers are set to merge, subject to regulatory approval.

Mercer Advisors, based in Santa Barbara, California, and Kanaly Trust, based in Houston, Texas, have agreed to merge to create an entity with over $8 billion in assets under management. 

The combined company will be led by Mercer Advisors' chief executive, David Barton, while Kanaly Trust will retain a stake. Terms of the deal were not disclosed.

Mercer Advisors, provides investment management, financial planning, family office services, retirement benefits and distribution planning, estate planning and tax management services. The firm, which was acquired by Genstar Capital last year, manages over $6 billion in assets on behalf of more than 5,000 clients.

Kanaly Trust, owned by private equity firm Lovell Minnick Partners, provides wealth management and financial planning and trust/estate services to families, individuals, and estates. It manages and advises on assets of over $2 billion for more than 500 families, and serves as the trustee or executor for estates totaling more than $2.5 billion.

“Genstar has been instrumental in helping us rapidly grow our company, and we are well-positioned to build on our momentum. Paramount in Kanaly Trust's decision to join Mercer Advisors was our shared commitment to the highest level of service, which makes this combination such a great fit,” said Barton. 

“Our extensive experience working with high-net-worth entrepreneurs and executives, and family offices is highly complementary to Mercer Advisors, and this partnership will allow us to provide those services on a national level,” said Drew Kanaly, chairman of Kanaly Trust.