Focus Financial launches secondary offering

Focus Financial Partners Inc. launched a secondary offering of 7 million shares of its Class A common stock (FOCS) priced at $48.00 a share.

Of the total, 6,536,327 shares are being offered by stockholders of Focus affiliated with Kohlberg Kravis Roberts and Stone Point Capital, and 463,673 shares are being offered by Focus on behalf of certain of the existing unitholders of Focus Financial Partners LLC, its operating subsidiary.

Focus said it intends to contribute the net proceeds from the secondary offering to its operating company in exchange for newly issued common units. Focus LLC will use the contributed amount to purchase units from certain Focus LLC unitholders, including employees and principals of its partner firms, but not Focus corporate executive officers and directors. In connection with the purchase, Focus said it will cancel the corresponding shares of its Class B common stock.

The offering will not have a dilutive impact on existing shareholders, the company said in a release.

Separately, Focus said it's made an investment in Prairie Capital Management, a hybrid firm based in Kansas City, Missouri, managing $5 billion. The transaction is expected to close in the second quarter.

[More: Focus Financial sees another bang-up year for RIA M&A in 2021]