Kestra Holdings has recapitalized, with private equity firm Stone Point Capital returning to take a majority stake in the company. As a result, private equity firm Warburg Pincus will exit its majority investment, which it made at the beginning of 2019. Oak Hill Capital, another private equity firm, will retain its minority stake.
The move signals a return of Stone Point, which first took a majority interest in Kestra in 2016 when the firm spun out of NFP. When Warburg Pincus invested in 2019, Stone Point stayed on as a minority owner. Oak Hill then took over Stone Point’s minority stake 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,” Kestra said in a statement.
“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,” said James Poer, CEO of Kestra Holdings, in a statement.
The capital will go toward the firm’s recruiting efforts, service and technology platform and acquisition business, Bluespring Wealth Partners.
“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,” Poer said.
The deal, expected to close in the first quarter 2025, is not expected to impact Kestra employees, advisors or operations, and there will be no repapering of client accounts.
Founded in 1997, Kestra Holdings, which includes a trust company, RIAs, broker/dealers and investment firms, currently oversees $117 billion in assets under administration through 1,700 financial professionals.
