Private equity firms take controlling interest in Focus Financial

Infusion from Stone Point Capital and KKR values RIA consolidator at $2 billion

Apr 19, 2017 @ 10:24 am

By InvestmentNews

Rudy Adolf
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Rudy Adolf

An investor group led by private equity firms Stone Point Capital and KKR is acquiring a majority stake in Focus Financial Partners, valuing the RIA rollup firm at approximately $2 billion.

Selling shareholders include Focus' current private equity investors — Centerbridge Partners, Summit Partners and Polaris Partners — as well as employees and some of the registered investment advisory firms that use Focus Financial's platform, which provides a variety of services for those firms.

Terms of the acquisition were not announced.

In a press release, Focus said that the new capital infusion is the firm's third liquidity event since 2013, noting that the company's senior management team, including founder and CEO Rudy Adolf, will continue to lead the business and each will remain a significant shareholder.

Focus, which was founded in 2006, has 45 partner firms and affiliates across the United States, Australia, Canada and the United Kingdom, with a joint venture in China.

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