Kestra Holdings announced that funds managed by Stone Point Capital (a leading private equity firm focused on global financial services and related industries) have agreed to buy a majority interest in the company’s parent partnership, replacing current partner Warburg Pincus. Private equity firm Oak Hill Capital will remain a minority owner. And the Kestra Holdings management team, many Kestra-affiliated financial advisors, and Bluespring-affiliated principals will retain equity positions in the company. Bluespring Wealth Partners is the acquisition arm of Kestra Holdings.
Stone Point had first invested in Kestra in 2016, supporting its spinout from NFP before becoming a minority investor in 2019. Stone Point then sold its minority interest to Oak Hill in 2022. The firm’s return as majority shareholder represents a strong vote of confidence in the management team, its mission and financial services platform.
Through its partnership with Warburg Pincus, Kestra Holdings significantly expanded its value proposition by helping deepen its service and technology platform, building Kestra Investment Management, and growing Bluespring Wealth Partners into an acquisition force.
Kestra’s recapitalization will provide additional fuel to an already robust growth engine, which includes industry-leading recruiting, a powerful service and technology platform, and a high-growth wealth management acquisition business. And Kestra will remain focused on serving independent financial advisors by expanding its unique wealth management offerings in Kestra Financial and Kestra Private Wealth Services, as well as accelerating its acquisition of premium wealth management firms through Bluespring Wealth Partners.
Stone Point has over 25 years of private equity experience, having raised more than $35 billion in aggregate capital commitments to invest in more than 160 companies across 10 active verticals and 75+ sub-sectors. And the investment activities of the firm are led by a senior management team of seven, with support from more than 80 investment professionals.
Evercore served as Kestra Holdings’ financial advisors in this deal, and Wachtell, Lipton, Rosen & Katz served as legal counsel and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as financing counsel for the company and Warburg Pincus. For further information about Kestra Holdings visit: www.kestraholdings.com.
Goldman Sachs served as financial advisor, and Simpson Thacher & Bartlett served as legal counsel for Stone Point.
KEY QUOTES:
“We’re pleased with the successful partnership we had with Warburg Pincus and are excited to once again partner with Stone Point. Stone Point’s expertise and partnership previously helped propel us along a successful path to establishing our unique value proposition – to support successful wealth management businesses with full and deep value while focusing on the life cycle of their entrepreneurial efforts. Today, our priorities are to strengthen that value proposition as we continue building a destination of choice for independent, successful wealth management businesses and professionals. With support from Stone Point and Oak Hill, we will continue scaling our platform and growing our expertise in serving and acquiring established wealth management firms seeking a monetization path that respects their legacy.”
-James Poer, CEO of Kestra Holdings
“We are thrilled to partner once again with James and the Kestra management team. We believe Kestra is a highly differentiated platform in the independent wealth management space and are excited to continue to strengthen Kestra’s value proposition and propel growth for the financial advisors it serves.”
-Fayez Muhtadie, Co-Head of Private Equity at Stone Point
“Our partnership with James and the talented team at Kestra has been exceptional. Kestra has built a world-class platform, and we are confident that the organization will continue to thrive with Stone Point and Oak Hill as partners.”
-Jeff Stein, Managing Director and Head of U.S. Financial Services, Warburg Pincus
“We look forward to watching Kestra’s continued success and momentum in the future.”
-Adam Levinson, Principal, Warburg Pincus