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Kestra Financial Up for Sale, with Goldman Sachs Overseeing It

December 17, 2018

Private equity firm Stone Point Capital is selling independent broker-dealer Kestra Financial less than three years after buying it, according to news reports.

Stone Point recently hired Goldman Sachs to help steer the sale, with the first batch of bids expected as soon as this week, industry sources who asked to remain anonymous tell InvestmentNews.

And one of the Goldman bankers involved was also on the team that oversaw the $1.7 billion sale of a majority stake of Cetera Financial Group to private equity shop Genstar Capital this summer, one of the sources tells the publication.

James Poer, Kestra’s CEO, didn’t return InvestmentNews’ calls for comment while a spokeswoman for the company tells the publication Kestra isn’t commenting on the matter. A Goldman Sachs spokesman tells InvestmentNews the company has no comment.

Stone Point bought Kestra, at the time known as NFP Advisors, from consulting firm and insurance brokerage NFP Corp. in 2016.

Kestra has since made several acquisitions of its own, in particular last year’s purchase of H. Beck, the independent broker-dealer with 600 advisors overseeing around $2.5 billion Kestra bought from Securian Financial Group.

At the end of last year, Kestra reported $476 million in revenue, while its 1,876 registered reps and financial advisers were overseeing $75.8 billion, according to InvestmentNews. Kestra was the 15th largest independent broker-dealer by revenue last year, according to the publication’s data.

By Alex Padalka
  • To read the InvestmentNews article cited in this story, click here.