Focus Financial to Sell Big Stakes to KKR, Stone Point

The RIA aggregator says it now has some 45 partner firms and is valued at $2 billion

Rollup firm Focus Financial Partners said it is getting two new heavyweight private-equity investors: Stone Point Capital and KKR, which value the RIA aggregator at about $2 billion.

Investors selling their holdings of Focus include Centerbridge Partners, Summit Partners and Polaris Partners, as well as some advisors and staff. According to the firm, this is the third significant move to raise capital since 2013.

“Stone Point and KKR are highly regarded investors who support entrepreneurs in the financial services industry,” said founder and CEO Rudy Adolf, in a statement.

“We are committed to being the best partner to entrepreneurial wealth management firms throughout the U.S. and across the globe, and we remain committed to creating value for all of our shareholders, including our clients, partner firms and affiliates, and employees,” Adolf explained.

In August, news reports circulated that New York-based Focus had filed to go public with a $1 billion valuation. The firm said at the time it had roughly $400 million in yearly revenues.  

"By consistently delivering value to its clients and partner firms, Focus has distinguished itself as the partner-of-choice for leading independent wealth managers in the U.S. and beyond. We look forward to supporting the firm's continued success by leveraging our global network and resources," said Henry Kravis, co-founder, co-chairman and co-CEO of KKR, in a statement.

Founded in 2006, Focus has about 45 partner firms and affiliates in the United States, Australia, Canada and the United Kingdom, plus a joint venture in China.

"Rudy and his team have built a remarkable business model that provides relentless support to their independent wealth management advisors," said Chuck Davis, CEO of Stone Point Capital, in a press release. "We are excited to enhance their continued expansion with our sector expertise and deep network of relationships throughout the financial services industry."

Focus says it made more than 20 acquisitions in 2016 and six in early 2017. In February, for instance, RIA CFO4Life in Coppell, Texas, with more than $800 million in assets under advisement, joined the partner firm.

--- Related on ThinkAdvisor

Reprints Discuss this story
We welcome your thoughts. Please allow time for your contribution to be approved and posted. Thank you.

Related

HighTower to Buy $6.4B RIA Aggregator WealthTrust

The larger advisor rollup firm says it added a $75 million credit facility to fund its largest deal to date.

Most Recent Videos

Video Library ››