KKR to Acquire $150B Asset Manager from Penn Mutual 

Private equity giant KKR, through its investment funds, agreed to acquire Janney Montgomery Scott, LLC, a wealth management firm with $150 billion in assets, from Penn Mutual Life Insurance Company for an undisclosed amount. 

Philadelphia-based Janney, established in 1832, will operate as a standalone private entity following the transaction close, which is expected in the fourth quarter. The firm has over 900 financial advisors with 135 offices. As one of the largest regional broker-dealers, Janney has been owned by Penn Mutual since 1982. 

Like its previous acquisitions, KKR plans to help Janney establish a comprehensive stock ownership program for its 2,300 employees. The firm is making its investment in Janney primarily through its North America Fund XIII. 

“We are excited to enter this next chapter in our nearly 200-year history with a new value-added strategic partner. KKR has demonstrated they value our client- and advisor-centric culture and share our deep conviction in the tremendous opportunities ahead for our business,” said Tony Miller, president at Janney. 

Private equity firms have been increasing their investments in RIAs, independent broker-dealers, and companies that provide wealth managers with technology and asset management services. For example, Envestnet and Bain Capital recently agreed on a $4.5 billion transaction. 

KKR has a track record of investing in the wealth management industry, with holdings in Beacon Pointe, an RIA, and Focus Financial, a network of RIAs. 

Ardea Partners served as financial advisor and Kirkland & Ellis LLP and Simpson Thacher & Bartlett LLP served as legal advisors to KKR. WilmerHale served as legal advisor to Penn Mutual.