Stone Point to Acquire Majority Stake in $117B Kestra
Kestra Holdings announced that funds managed by investment firm Stone Point Capital LLC have acquired an undisclosed majority stake in the parent partnership of the company, replacing current partner Warburg Pincus LLC. Private equity firm Oak Hill Capital will remain a minority owner.
The Kestra Holdings management team and a large number of Kestra-affiliated financial advisors and Bluespring-affiliated principals will retain equity positions in the company. Bluespring Wealth Partners is the acquisition arm of Kestra Holdings.
Stone Point first invested in Austin, TX-based Kestra in 2016, supporting its spinout from NFP before becoming a minority investor in 2019. Stone Point then sold its minority interest to Oak Hill in 2022.
Kestra Holdings’ recapitalization will provide further support to its growth, which includes recruiting, a service and technology platform, and a wealth management acquisition business.
The $117 billion-managing Kestra Holdings will remain focused on serving independent financial advisors by expanding its wealth management offerings in Kestra Financial and Kestra Private Wealth Services, as well as accelerating its acquisition of wealth management firms through Bluespring Wealth Partners.
“With support from Stone Point and Oak Hill, we will continue scaling our platform and growing our expertise in serving and acquiring established wealth management firms seeking a monetization path that respects their legacy,” said James Poer, CEO of Kestra Holdings.
The deal is expected to close in the first quarter of 2025.
Greenwich, CT-based Stone Point has more than $55 billion of assets under management, targeting investments in companies in the global financial services industry and related sectors.
Evercore served as Kestra Holdings’ financial advisors, and Wachtell, Lipton, Rosen & Katz served as legal counsel and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as financing counsel for the company and Warburg Pincus.
Goldman Sachs & Co. LLC served as financial advisor and Simpson Thacher & Bartlett LLP served as legal counsel for Stone Point.
