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Kestra Financial Finds Buyer for Majority Stake

By Alex Padalka February 26, 2019

Private equity firm Warburg Pincus has agreed to acquire a majority stake in Kestra Financial, Kestra says.

Private equity firm Stone Point Capital, which is Kestra’s current majority owner, will keep a minority stake, according to a press release from Kestra.

Kestra’s management team will also retain equity stakes in the firm, and Kestra expects several of the firm’s more than 2,000 independent financial advisors to retain equity positions as well, according to the press release. Kestra also says that its employees and advisors will not be impacted by the transition, with no repapering requirement for clients.

“We’re excited to continue building an industry-leading wealth management organization. The independent advisor community has been responsive to our evolution and we are fortunate to serve the best,” James Poer, Kestra’s CEO, says in the press release. “Our new relationship with Warburg Pincus, and continued relationship with Stone Point, will allow us to continue building on the shared success we have achieved.”

The companies did not disclose the terms of the deal, which is expected to close in the second or early third quarter, according to the press release.

Warburg Pincus was one of several private equity managers considering buying Kestra, InvestmentNews reported earlier this month.

Sources told the publication at the time that Kestra was being valued at $600 million to $800 million.

Goldman Sachs and Bank of America Merrill Lynch served as the financial advisors on the deal, Kestra says.