Penn Mutual Life Insurance Company is firing Janney Montgomery Scott after 42 years of owning the brokerage firm. The company announced that it has signed an agreement to sell Janney to funds managed by private equity firm KKR.
After the deal closes, which is expected in the fourth quarter, Janney will operate as an independent, privately held company. The deal will also allow Janney to establish a broad-based equity ownership program for its 2,300 employees.
Terms of the deal were not disclosed.
“KKR has shown that it values our client- and advisor-centric culture and shares our deep belief in the tremendous opportunities that await our business,” Janney president Tony Miller said in a statement. “We look forward to working with KKR to further invest in our growth and enable our talented team to further enhance the advice and services we offer our clients.”
Penn Mutual bought Janney in 1982, but the Philadelphia-based retail brokerage traces its roots back to 1832. The firm now has more than 900 financial advisors in 135 U.S. offices and $150 billion in assets under management.
A Fitch Ratings report said the sale was neutral to Penn Mutual's ratings, saying Janney represents over 15% of the insurance company's operating earnings. The rating agency said the brokerage contributed to more significant earnings in recent years, with the benefits of higher short-term interest rates.
This is not KKR's first attempt wealth management. In 2021, Beacon Pointe sold less than half of its equity to the private equity firm. Since thenit has grown its assets to more than $30 billion.