Kestra Financial Announces Recapitalization to Include Warburg Pincus Feb 25, 2019

Kestra Financial Announces Recapitalization to Include Warburg Pincus
Warburg Pincus to help fuel next-generation growth for Kestra Financial

AUSTIN, Texas -- (Feb. 25, 2019) – Kestra Financial, Inc. (Kestra Financial) today announced that leading global private equity firm Warburg Pincus LLC (Warburg Pincus) has agreed to acquire a majority interest in the company. Funds managed by Stone Point Capital, LLC (Stone Point), Kestra Financials’ current majority owner, will maintain a minority stake in the company. Kestra Financial’s management team will retain equity positions in the company. It is also anticipated that a number of advisors will retain equity positions in the company.

Kestra Financial’s recapitalization will provide additional fuel to an already robust growth engine, which has included industry-leading recruiting, powerful advisor technology, and institutional and wealth management acquisitions.

“We’re excited to continue building an industry-leading wealth management organization. The independent advisor community has been responsive to our evolution and we are fortunate to serve the best,” said James Poer, CEO of Kestra Financial. “Our new relationship with Warburg Pincus, and continued relationship with Stone Point, will allow us to continue building on the shared success we have achieved.”

Warburg Pincus has over 50 years of private equity experience, having invested more than $73 billion in 855 companies worldwide.

“We are thrilled to partner with James, the Kestra Financial team and Stone Point in the next chapter of Kestra Financial’s success. The company’s focus on providing best-in-class service and technology to its advisors and their clients positions the business for an exciting future,” said Arjun Thimmaya, Managing Director, Warburg Pincus. “We are committed to supporting Kestra Financial in their mission to build the leading wealth management platform to empower the success of their financial advisors,” added Jeff Stein, Managing Director, Warburg Pincus.

“We are incredibly proud of Kestra Financial’s success. We firmly believe in their growth prospects and look forward to our continued partnership with James and the rest of the talented management team, as well as with Warburg Pincus,” said Fayez Muhtadie, Senior Principal at Stone Point.

Subject to customary regulatory approvals, the transaction is expected to close during the second or early third quarter of this year. There will be no impact to Kestra Financial’s employees and advisors associated with this transition, including no repapering requirement for advisors’ clients.

Goldman Sachs & Co. LLC and BofA Merrill Lynch served as Kestra Financial’s financial advisors in this transaction, and Kramer Levin Naftalis & Frankel LLP served as legal counsel for the company. Wachtell, Lipton, Rosen & Katz served as corporate counsel and Kirkland & Ellis LLP served as financing counsel for Warburg Pincus. For further information about Kestra Financial go to:

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