Investment will fuel continued growth of the wealth management platform

Kestra Holdings (Kestra Holdings) today announced that funds managed by Stone Point Capital LLC (Stone Point), a leading private equity firm focused on global financial services and related industries, has agreed to acquire a majority interest in the parent partnership of the company, replacing current partner Warburg Pincus LLC (Warburg Pincus), a leading global growth investor. Private equity firm Oak Hill Capital (Oak Hill) 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 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. The firm’s return as majority shareholder represents a strong vote of confidence in the management team, its mission and financial services platform.

In its partnership with Warburg Pincus, Kestra Holdings significantly expanded its value proposition by helping deepen its service and technology platform, building Kestra Investment Management and growing Bluespring Wealth Partners into an acquisition force.

Kestra Holdings’ recapitalization will provide additional fuel to an already robust growth engine, which includes industry-leading recruiting, a powerful service and technology platform, and a high-growth wealth management acquisition business. Kestra will remain focused on serving independent financial advisors by expanding its unique wealth management offerings in Kestra Financial and Kestra Private Wealth Services, as well as accelerating its acquisition of premium wealth management firms through Bluespring Wealth Partners.

“We’re pleased with the successful partnership we had with Warburg Pincus and are excited to once again partner with Stone Point,” said James Poer, CEO of Kestra Holdings. “Stone Point’s expertise and partnership previously helped propel us along a successful path to establishing our unique value proposition – to support successful wealth management businesses with full and deep value while focusing on the life cycle of their entrepreneurial efforts. Today, our priorities are to strengthen that value proposition as we continue building a destination of choice for independent, successful wealth management businesses and professionals. 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.”

Stone Point has over 25 years of private equity experience, having raised more than $35 billion in aggregate capital commitments to invest in more than 160 companies across 10 active verticals and 75+ sub-sectors. The investment activities of the firm are led by a senior management team of seven, with support from more than 80 investment professionals.

“We are thrilled to partner once again with James and the Kestra management team. 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 and propel growth for the financial advisors it serves,” said Fayez Muhtadie, Co-Head of Private Equity at Stone Point.

"Our partnership with James and the talented team at Kestra has been exceptional. Kestra has built a worldclass platform, and we are confident that the organization will continue to thrive with Stone Point and Oak Hill as partners,” said Jeff Stein, Managing Director and Head of U.S. Financial Services, Warburg Pincus. “We look forward to watching Kestra’s continued success and momentum in the future," added Adam Levinson, Principal, Warburg Pincus.

Subject to customary regulatory approvals, the transaction is expected to close in the first quarter of 2025. No impact to Kestra Holdings’ employees, financial advisors or operations is anticipated in connection with the transaction, and advisors’ clients will not be required to repaper their accounts.

Evercore served as Kestra Holdings’ financial advisors in this transaction, 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. For further information about Kestra Holdings visit: www.kestraholdings.com.

Goldman Sachs & Co. LLC served as financial advisor and Simpson Thacher & Bartlett LLP served as legal counsel for Stone Point.

About Kestra Holdings

Kestra Holdings offers industry-leading wealth management platforms for independent wealth management professionals nationwide. With an innovative culture that celebrates independence, the company seeks to redefine the future of the advisory industry through superior service, cutting-edge technology, and preeminent resources that every financial professional needs to succeed in the market now and in the years to come. Kestra Holdings companies support independent financial professionals across the country in delivering comprehensive securities, trust, and investment advisory services to their clients. Kestra Holdings is the direct or indirect parent company of Arden Trust Company (www.ardentrust.com), Bluespring Wealth Partners, LLC (www.bluespringwealth.com; including its investment adviser and wealth management firm subsidiaries), Kestra Investment Services, LLC, member FINRA/SIPC, as well as Kestra Investment Management, LLC (www.kestraim.com), Kestra Advisory Services, LLC (www.kestrafinancial.com), Kestra Private Wealth Services, LLC (www.kestrafinancial.com/private-wealth-services), and Kestra Institutional Services, LLC, all federally registered investment advisers.

About Stone Point Capital

Stone Point is an investment firm based in Greenwich, CT, with more than $55 billion of assets under management. Stone Point targets investments in companies in the global financial services industry and related sectors. The firm invests in alternative asset classes, including private equity through its flagship Trident Funds and credit through commingled funds and separately managed accounts. In addition, Stone Point Capital Markets supports its firm, portfolio companies and other clients by providing dedicated financing solutions. For more information, please visit www.stonepoint.com.

About Oak Hill Capital

Oak Hill is a longstanding private equity firm focused on the North America middle-market. Oak Hill applies a specialized, theme-based approach to investing and implements a highly systematic approach to theme development, proactive origination, and value creation in partnership with management to build franchises of lasting value. Over the past 35+ years, Oak Hill and its predecessors have raised over $23 billion of initial capital commitments and co-investments and invested in over 110 companies. For more information, please visit www.oakhill.com.

About Warburg Pincus

Warburg Pincus LLC is a leading global growth investor. The firm has more than $83 billion in assets under management. The firm’s active portfolio of more than 225 companies is highly diversified by stage, sector, and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value. Since its founding in 1966, Warburg Pincus has invested more than $117 billion in over 1,000 companies globally across its private equity, real estate, and capital solutions strategies. The firm is headquartered in New York with offices in Amsterdam, Beijing, Berlin, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai, and Singapore. For more information, please visit www.warburgpincus.com.

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