A $427 million Northwest Ohio-based firm is joining a Kestra Financial RIA subsidiary from affiliating with Edward Jones. The move comes several weeks after Kestra recapitalized, and private equity firm Stone Point Capital became a majority stakeholder for the second time.
Arc Private Wealth founders Dave Riggenbach, Adam Lublin, Amy Fredritz and Dylan Clement will all join Kestra Private Wealth Services as a part of the deal, along with five support staff members. Arc Private Wealth has offices in the Ohio towns of Oregon, Waterville and Upper Sandusky.
According to Riggenbach, the firm was attracted by Kestra’s “high-touch, white-glove experience” for clients and its greater access to investment platforms.
“We prioritize client relationships, and when going independent, we were looking for a partner firm that shares these values,” he said.
The four founders collectively have more than four decades of industry experience. The advisors joined Edward Jones at various points between 2015 and 2017 (except Lublin, who joined in 2008, according to FINRA records).
The Austin-based Kestra Financial is the independent broker/dealer subsidiary of Kestra Holdings, with several subsidiaries, including Kestra Private Wealth Services, Kestra Advisory Services and Kestra Investment Services.
Last month, Stone Point Capital reacquired its majority stake in Kestra Holdings in a recapitalization, with private equity firm Warburg Pincus exiting its majority investment. Stone Point initially took a minority interest in Kestra in 2016 but moved into a minority stake after Warburg Pincus took the reins in 2019. PE firm Oak Hill Capital took over Stone Point’s stake in 2022 (Oak Hill remained a minority investor post-recapitalization).
The Stone Point deal is expected to close in the first quarter of 2025 and not impact Kestra employees or operations, with no client repapering. The capital would go towards recruiting efforts, service and technology and bolstering Bluespring Wealth Partners, Kestra’s acquisition business.
“The firm’s return as majority shareholder represents a strong vote of confidence in the management team, its mission and financial services platform,” a Kestra spokesperson said about the deal.
In other moves this year, KPWS welcomed the $600 million New York-based firm Borger Financial Services and a team of five Ohio advisors with approximately $500 million in assets who joined from Merrill Lynch. To date, more than 50 single—and multi-team offices around the country have joined Kestra via KPWS.
Among its subsidiaries, Kestra Financial has around $108 billion in assets under management and $56 billion in AUM (Kestra Holdings has $117 billion in managed assets).
