Private equity firm Stone Point Capital has agreed a deal to acquire a majority stake in Kestra Holdings, an independent broker-dealer with $117 billion in assets under management, buying out Warburg Pincus’s stake in the business.
Kestra’s other private equity investor, Oak Hill Capital, will retain its minority stake.
While the specific financial details were not disclosed, the transaction is expected to close in the first quarter of 2025.
Stone Point previously controlled Kestra from 2016 to 2019 before selling its stake to Warburg Pincus. Oak Hill Capital later acquired Stone Point’s remaining investment in 2022. Last week, Citywire reported that Warburg Pincus had been exploring a sale and had engaged Evercore as its investment banker.
Kestra operates across five verticals, including its independent broker-dealer Kestra Financial, wealth services division Kestra Private Wealth Services, RIA acquirer Bluespring Wealth Partners, investment management firm Kestra Investment Management, and trust services provider Arden Trust Company. The firm supports approximately 1,700 affiliated advisors.
Stone Point, based in Greenwich, Connecticut, is a major player in the independent wealth management sector. The firm has backed Focus Financial Partners since 2017 and invested in Wealth Enhancement Group in 2023.
Wachtell, Lipton, Rosen & Katz acted as legal counsel for Kestra, while Paul, Weiss, Rifkind, Wharton & Garrison served as financing counsel for both Kestra and Warburg Pincus.
