Penn Mutual Life Insurance Company is shedding Janney Montgomery Scott after 42 years of owning the brokerage firm. The company announced it has signed an agreement to sell Janney to funds managed by private equity firm KKR.
Once the deal closes, which is expected in the fourth quarter, Janney will operate as a standalone, private company. The deal will also allow Janney to create a broad-based equity ownership program for its 2,300 employees.
Terms of the deal were not disclosed.
“KKR has demonstrated they value our client- and advisor-centric culture and share our deep conviction in the tremendous opportunities ahead for our business,” Janney President Tony Miller said in a statement. “We look forward to working with KKR to invest further in our growth and enable our talented team to further improve the advice and services we offer our clients.”
Penn Mutual acquired Janney in 1982, but the Philadelphia-based retail brokerage has roots dating back to 1832. The firm now has more than 900 financial advisors across 135 offices in the U.S. and $150 billion in assets under administration.
A Fitch Ratings report said the sale was neutral to Penn Mutual’s ratings, saying Janney represents over 15% of the insurance company’s operating earnings. The ratings agency said the brokerage contributed more meaningful earnings in recent years, with the benefits of higher short-term interest rates.
This isn't KKR's first foray into wealth management. In 2021, Beacon Pointe sold less than half of its equity to the private equity firm. Since then, it has grown its assets to more than $30 billion.