Kestra Holdings is getting a fresh capital infusion to drive its growth efforts through a deal that marks the return of Stone Point Capital as its majority shareholder.
The private equity firm specializing in financial services will replace Warburg Pincus as Kestra's top shareholder, while Oak Hill Capital will remain a minority owner. The Kestra Holdings management team, alongside many Kestra-affiliated financial advisors and Bluespring Wealth Partners principals, will retain equity stakes in the company.
Stone Point Capital's history with Kestra dates back to 2016, when it initially invested in the company following its spinout from NFP. It held a majority interest until 2019, when Kestra announced a deal to sell a majority stake to Warburg Pincus. That transaction relegated Stone Point into minority stakeholder status until 2022, when it sold its interest to Oak Hill.
Over its five-year engagement with Warburg Pincus, Kestra said it was able to extend its value proposition by enhancing its service and tech platform, establishing Kestra Investment Management and turning Bluespring into a top acquirer.
“We’re pleased with the successful partnership we had with Warburg Pincus and are excited to once again partner with Stone Point," Kestra Holdings CEO James Poer said in a statement commenting on the renewed partnership.
Stone Point's return as majority investor is seen as a significant endorsement of Kestra’s management and its wealth management platform.
Neither Kestra nor Stone Point is disclosing how much Stone Point is investing this time around, a spokesperson told InvestmentNews.
"Stone Point’s expertise and partnership previously helped propel us along a successful path to establishing our unique value proposition,” Poer said, adding that the company's focus will remain on supporting independent financial advisors and expanding its wealth management offerings through Kestra Financial and Kestra Private Wealth Services.
Stone Point, which has raised over $35 billion and invested in more than 160 companies, aims to bolster Kestra's platform further.
Fayez Muhtadie, co-head of private equity at Stone Point, stated, “We believe Kestra is a highly differentiated platform in the independent wealth management space and are excited to continue to strengthen Kestra’s value proposition.”
Warburg Pincus, Kestra’s outgoing partner, expressed confidence in the company’s future. “Kestra has built a world-class platform, and we are confident that the organization will continue to thrive,” Jeff Stein, managing director at Warburg Pincus.
The Stone Point transaction is expected to close in early 2025, with no disruption to Kestra's financial advisors or their clients, pending regulatory approvals.
Canadian stocks are on a roll in 2025 as the country prepares to name a new Prime Minister.
Two C-level leaders reveal the new time-saving tools they've implemented and what advisors are doing with their newly freed-up hours.
The RIA led by Merrill Lynch veteran John Thiel is helping its advisors take part in the growing trend toward fee-based annuities.
Driven by robust transaction activity amid market turbulence and increased focus on billion-dollar plus targets, Echelon Partners expects another all-time high in 2025.
The looming threat of federal funding cuts to state and local governments has lawmakers weighing a levy that was phased out in 1981.
RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.
As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.
