Kestra Holdings has been recapitalised, with private equity firm Stone Point Capital returning to take a majority stake in the company. As a result, private equity firm Warburg Pincus will exit its majority investment, which it was made at the beginning of 2019. Oak Hill Capital, another private equity firm, will hold its minority stake.
The move signals a return to Stone Point, which first took a majority interest in Kestra in 2016 when the firm exited the NFP. When Warburg Pincus invested in 2019Stone Point stayed on as a minority owner. Oak Hill then took over the minority stake of Stone Point in the year 2022.
“The firm's return as majority shareholder represents a strong vote of confidence in the management team, its mission and financial services platform,” Kestra said in a statement.
“Stone Point's expertise and partnership previously helped us on a successful path to creating our unique value proposition – to support successful wealth management businesses with full and deep value by focusing on the lifecycle of efforts their entrepreneurial spirit,” said James Poer, CEO of Kestra Holdings, in a statement.
The capital will go towards the firm's recruitment efforts, services and technology platform and buyout business, Bluespring Wealth Partners.
“With the support of Stone Point and Oak Hill, we will continue to expand our platform and increase our expertise in serving and acquiring established wealth management firms seeking a monetization path that respects their legacy,” Poer said. .
The deal, which is expected to close in the first quarter of 2025, is not expected to affect Kestra's employees, advisors or operations and will not result in repayment of customer accounts.
Founded in 1997, Kestra Holdings, which includes a trust company, RIA, broker/dealer and investment firm, currently oversees $117 billion in assets under management through 1,700 financial professionals.