Stone Point Capital is reuniting with Kestra Holdings, replacing existing majority owner Warburg Pincus to which it previously sold its majority stake in Kestra in 2019, the companies announced October 15.
The move returns controlling interest in Kestra to Stone Point five years after the private equity firm sold its majority position to Warburg Pincus before divesting its remaining minority ownership stake to Oak Hill Capital in September 2022. Terms and financial consideration of the latest change in control were not disclosed, though the Kestra management team and “a large number” of Kestra-affiliated financial advisors and principals affiliated with its Bluespring Wealth Partners acquisition arm will retain equity positions in the company.
Kestra said the transaction is expected to close in the first quarter of 2025, subject to customary regulatory approvals, and that it does not expect an impact to Kestra employees, financial advisors, or operations. Client advisors will also not be required to repaper their accounts.
Evercore served as financial advisor to Kestra, and Wachtell, Lipton, Rosen & Katz provided legal counsel. Paul, Weiss, Rifkind, Wharton & Garrison LLP served as financing counsel to Kestra and Warburg Pincus. For Stone Point, Goldman Sachs provided financial advice and Simpson Thacher & Bartlett LLP legal counsel.
As previously reported, earlier in October Warburg Pincus was rumored to be shopping its majority stake in Kestra, which manages a combined $164B in AUA and AUM in its core advisory and brokerage business.
View the press release here.
