Kestra Holdings is getting a fresh capital infusion to drive its growth efforts through a deal that marks the return of Stone Point Capital as its majority shareholder.
The private equity firm specializing in financial services will replace Warburg Pincus as Kestra's top shareholder, while Oak Hill Capital will remain a minority owner. The Kestra Holdings management team, alongside many Kestra-affiliated financial advisors and Bluespring Wealth Partners principals, will retain equity stakes in the company.
Stone Point Capital's history with Kestra dates back to 2016, when it initially invested in the company following its spinout from NFP. It held a majority interest until 2019, when Kestra announced a deal to sell a majority stake to Warburg Pincus. That transaction relegated Stone Point into minority stakeholder status until 2022, when it sold its interest to Oak Hill.
Over its five-year engagement with Warburg Pincus, Kestra said it was able to extend its value proposition by enhancing its service and tech platform, establishing Kestra Investment Management and turning Bluespring into a top acquirer.
“We’re pleased with the successful partnership we had with Warburg Pincus and are excited to once again partner with Stone Point," Kestra Holdings CEO James Poer said in a statement commenting on the renewed partnership.
Stone Point's return as majority investor is seen as a significant endorsement of Kestra’s management and its wealth management platform.
Neither Kestra nor Stone Point is disclosing how much Stone Point is investing this time around, a spokesperson told InvestmentNews.
"Stone Point’s expertise and partnership previously helped propel us along a successful path to establishing our unique value proposition,” Poer said, adding that the company's focus will remain on supporting independent financial advisors and expanding its wealth management offerings through Kestra Financial and Kestra Private Wealth Services.
Stone Point, which has raised over $35 billion and invested in more than 160 companies, aims to bolster Kestra's platform further.
Fayez Muhtadie, co-head of private equity at Stone Point, stated, “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.”
Warburg Pincus, Kestra’s outgoing partner, expressed confidence in the company’s future. “Kestra has built a world-class platform, and we are confident that the organization will continue to thrive,” Jeff Stein, managing director at Warburg Pincus.
The Stone Point transaction is expected to close in early 2025, with no disruption to Kestra's financial advisors or their clients, pending regulatory approvals.
New report shows dimmed outlook for benefits to retirees and disabled Americans, creating further pressure for federal tax hikes or more borrowing.
Open letter to SEC Chair Paul Atkins questions whether the Ivy League university withheld material information prior to its $750 million taxable bond offering.
The Las Vegas-based hybrid RIA overseeing $8.8 billion in assets has named Andy Kalbaugh president to help scale its advisor platform.
The wealth tech giant – in collaboration with Fidelity, BlackRock, State Street, and Franklin Templeton – is offering its advisor and wealth firm users more ways to diversify.
Deal volume increased post-election but now caution has taken over.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave
