Stone Capital to acquire majority stake in Kestra
Broker NFP Corp (NFP) has secured an investment by funds managed by Stone Point Capital, a private equity firm, which the companies said represented the start of a sustained relationship between them.
In connection with the transaction, NFP Advisor Services, a financial advisory platform, will change its name to Kestra Financial and Stone Point will acquire majority ownership of Kestra. NFP’s ultimate parent will also maintain a substantial minority ownership stake.
The deal is expected to close within 90 days. Terms of the transaction have not been disclosed.
The agreement between NFP and Stone Point “ensures a sustained relationship between the two companies”, the firms said, with Douglas Hammond, chairman and chief executive officer (CEO) of NFP, serving as a member of Kestra’s Board of directors.
Additionally, NFP and Kestra have entered into long-term reciprocal agreements for Kestra to serve as the preferred broker-dealer and registered investment adviser for NFP offices and membership organisations.
BofA Merrill Lynch acted as the exclusive financial advisor and Ropes & Gray acted as legal advisor to NFP in the transaction.
Hammond said: “We built Kestra as a premium service provider for the independent advisor marketplace, and in recent years, NFP and Kestra have each experienced tremendous growth.
“This agreement creates an optimal structure for NFP and Kestra, and enables NFP to focus on its core insurance brokerage and consulting competencies while promoting continued alignment between the two companies. We look forward to partnering with Stone Point and are confident that Kestra is well-positioned for long-term success.”
James Poer, president and CEO of Kestra, added: “We’ve always been dedicated to serving the most sophisticated, top-tier independent financial advisors with customised service and first-class technology. We look forward to accelerating the delivery of next-generation tools and resources to empower financial advisors through our new partnership with Stone Point.
“We are grateful to NFP for its partnership and continued alignment.”
Chuck Davis, CEO of Stone Point, commented: “Stone Point is delighted to be partnering with NFP, James Poer and the rest of the talented team at Kestra. Together, we share a common vision and strategy for growing the business, including expanding its presence across the US.
“We believe in Kestra’s leadership team, the advisors that Kestra serves and the service proposition of strong independent broker-dealers in today’s dynamic market place.”
