Kaye Capital Management Secures $700M Investment from Modern Wealth

Modern Wealth Fuels LA Expansion with $700M Kaye Capital Acquisition

The latest move signals aggressive growth for the RIA, now managing $8.5 billion.

Ken Watten, a managing director at Kaye Capital Management.

It’s a busy year for Modern Wealth Management, and the pace shows no signs of slowing. The registered investment advisor has just announced its fourth acquisition of 2024, bringing El Segundo-based Kaye Capital management into the fold. This strategic move adds a substantial $700 million in client assets and substantially bolsters Modern Wealth’s presence in the crucial Los Angeles market.

Founded in 2000, Kaye Capital Management is no stranger to the financial advisory landscape. Led by managing directors Ken Watten and David Hilton, the firm also boasts the expertise of client services manager kristen Kajikawa and operations associate Tiffany Taylor. Their integration marks Modern wealth’s 17th acquisition as its launch in 2023, pushing the firm’s total assets under management past the $8.5 billion mark.

This isn’t just about adding numbers; it’s about enhancing capabilities. By joining forces, Kaye Capital Management gains access to Modern Wealth’s “Organic Growth Hub,” a suite of services designed to supercharge growth through lead generation, distribution, and streamlined client onboarding. In return, Modern wealth can now integrate Kaye Capital’s specialized retirement planning options, including 401(k)s, profit-sharing plans, 403(b)s, and 529 educational savings plans.

“KCM joining Modern Wealth marks another meaningful milestone as we deepen our reach in California, strengthening our ability to deliver complete wealth and retirement solutions for individuals and corporations in one of the nation’s most sophisticated markets,” stated jason Gordo, co-founder and president of Modern wealth.

This acquisition follows a pattern of strategic expansion for Modern Wealth. Earlier this year,the firm acquired Rochester,NY-based Beltz Ianni & Associates,a firm managing $1.2 billion in assets, which helped launch Modern Wealth’s institutional plan division. Before that, in May, Modern Wealth expanded its Chicago footprint by adding OFM wealth, backed by $200 million in equity financing from Crestview Partners.

The continued acquisition spree underscores Modern Wealth’s ambitious growth strategy. By integrating established firms like Kaye Capital Management, the RIA is not only expanding its geographic reach but also its service offerings and overall asset base, positioning itself as a formidable player in the wealth management industry.

How does this investment enable Kaye Capital to broaden its reach to a wider investor base?

Fueling Growth: The Details of the Investment

Kaye Capital Management, a leading investment firm specializing in option credit strategies, has announced a significant $700 million investment from Modern Wealth, a rapidly growing financial technology platform.This substantial capital injection, finalized on July 11, 2025, is poised to accelerate Kaye Capital’s expansion and further solidify its position within the private credit market. the funding will be strategically allocated to support several key initiatives, including:

Expanding Investment Capacity: A primary focus will be increasing kaye Capital’s ability to deploy capital into attractive private credit opportunities. This includes direct lending to middle-market companies, specialty finance, and other alternative credit strategies.

Technology Enhancement: Modern Wealth’s fintech expertise will be leveraged to enhance Kaye Capital’s technology infrastructure, streamlining investment processes and improving risk management capabilities.

team Expansion: The investment will facilitate the recruitment of top talent across investment, operations, and technology teams.

Product Growth: Kaye Capital plans to develop new and innovative private credit products to meet the evolving needs of institutional investors.

Modern Wealth’s Strategic Rationale

Modern Wealth’s decision to invest in Kaye Capital reflects a broader trend of fintech companies expanding into traditional asset management. This partnership allows Modern Wealth to offer its clients access to a diversified range of alternative investment strategies, including private credit, which has historically been challenging for individual investors to access. Key factors driving modern wealth’s investment include:

Kaye Capital’s Proven Track Record: Kaye Capital has demonstrated a consistent ability to generate strong risk-adjusted returns in the private credit market.

Experienced Management Team: The firm is led by a seasoned team of investment professionals with deep expertise in credit analysis and portfolio management.

Alignment of Values: Both Kaye Capital and Modern Wealth share a commitment to innovation, client service, and responsible investing.

Demand for Alternative Investments: Increasing investor appetite for alternative asset classes, especially private credit, due to its potential for higher yields and diversification benefits.

Impact on the private Credit Landscape

This $700 million investment is expected to have a ripple effect throughout the private credit industry. Increased capital availability from Kaye Capital could lead to:

Increased Lending to Middle-Market Companies: More capital flowing to middle-market businesses, which frequently enough struggle to access traditional bank financing. This can fuel economic growth and job creation.

Greater Competition Among Private Credit Funds: The influx of capital could intensify competition among private credit funds, potentially leading to more favorable terms for borrowers.

Innovation in Private Credit Products: Kaye Capital’s investment in technology and product development could spur innovation in the private credit market,leading to new and more efficient investment solutions.

increased Scrutiny from Regulators: As the private credit market continues to grow, regulators are likely to increase their scrutiny of the industry to ensure investor protection and financial stability. Understanding private credit regulations will be crucial for all players.

Kaye Capital Management: A Deeper dive

Founded in 2008,Kaye Capital Management has grown into a prominent player in the alternative credit space.The firm manages a diverse portfolio of private credit investments across various industries,including:

Healthcare: Providing financing to healthcare companies for acquisitions,expansions,and recapitalizations.

Technology: Supporting high-growth technology companies with venture debt and growth equity investments.

Business Services: Lending to business services companies to fund organic growth and strategic acquisitions.

Consumer Products: Providing financing to consumer products companies for working capital and expansion.

Kaye Capital’s investment strategy focuses on identifying undervalued credit opportunities and partnering with strong management teams.The firm emphasizes rigorous credit analysis, active portfolio management, and a disciplined approach to risk management. Their expertise in credit risk assessment is a key differentiator.

Modern Wealth: Disrupting the Financial landscape

Modern wealth is a fintech platform dedicated to democratizing access to sophisticated investment strategies. The company offers a range of financial planning and investment management services, leveraging technology to provide personalized advice and low-cost investment solutions. Modern wealth’s platform is designed to be user-friendly and accessible to investors of all levels of experience. They are known for their innovative approach to wealth management technology.

Benefits of Private Credit Investments

Private credit offers several potential benefits to investors:

*Higher Yield