Private-equity groups are busy in the wealth-management field.

NFP, an insurance broker and consultant with some 1,700 affiliated independent advisors, says its advisor-services unit will soon have a new owner and a new name: It entered into a deal on Monday with Stone Point Capital, which will acquire a majority stake in NFP Advisor Services — set to be renamed Kestra Financial.

The news comes about three years after NFP, formerly named National Financial Partners, was bought by the private equity group Madison Dearborn Partners in a deal valued at about $1.3 billion (including NFP’s convertible debt). It also follows the January announcement that private equity firm Lightyear Capital was buying the Advisor Group from AIG. 

The Stone Point-NFP transaction is subject to customary closing conditions and should close within 90 days, according to NFP. Terms of the transaction were not disclosed.

“We built [Austin-based] Kestra as a premium service provider for the independent advisor marketplace, and in recent years, NFP and Kestra have each experienced tremendous growth,” said NFP Chairman and CEO Douglas Hammond, in a statement.

“This agreement creates an optimal structure for NFP and Kestra, and enables NFP to focus on its core insurance brokerage and consulting competencies while promoting continued alignment between the two companies. We look forward to partnering with Stone Point and are confident that Kestra is well-positioned for long-term success,” Hammon explained.

As part of the deal, Hammond is set to serve on Kestra’s board. Plus, NFP and Kestra have entered into “long-term reciprocal agreements for Kestra to serve as the preferred broker-dealer and registered investment adviser for NFP offices and membership organizations,” according to the firms.

“We’ve always been dedicated to serving the most sophisticated, top-tier independent financial advisors with customized service and first-class technology,” said Kestra President & CEO James Poer, in a press release. “We look forward to accelerating the delivery of next-generation tools and resources to empower financial advisors through our new partnership with Stone Point [of Greenwich, Connecticut]. We are grateful to NFP for its partnership and continued alignment.”

— Check out NFP Rebrands Retirement Unit on ThinkAdvisor.