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Author: rafferty

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Warburg-Kestra deal signals challenges ahead

17:22 04 March in In the News by rafferty

March 1, 2019 By Tobias Salinger, Financial Planning It may have a track record in wealth management, but Warburg Pincus is entering the independent broker-dealer sector at a challenging time. Stone Point Capital has agreed to sell a majority stake in Kestra Financial to the global private equity firm roughly three years after buying the ownership position, the firms announced on Feb. 25. The parties didn’t disclose the terms of the deal, but reports have said it may value Kestra at as much as $800 million — or 8 to 10 times its EBITDA. Beyond regulatory approval, the agreement must win over the 2,300 advisors who would balk at disruption to their practices at Kestra and subsidiaries Kestra Private Wealth and H. Beck. The deal also comes after the Dow hit record highs 15...

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What Kestra’s Warburg Pincus Deal Means for Its Future

18:43 27 February in In the News by rafferty

February 25, 2019 By Janet Levaux, ThinkAdvisor Independent broker-dealer Kestra Financial is being bought by the private equity group Warburg Pincus, the firm said early Monday. Its prior owner, Stone Point Capital, will keep a minority stake in it, as will its management and possibly some of Kestra’s roughly 2,000 affiliated advisors. Warburg Pincus comes with some fairly deep pockets — $43 billion in assets in under management invested in about 180 companies. Stone Point works with $19 billion. “Warburg is a savvy PE firm in the space, with an investment in Facet Wealth and prior investments in The Mutual Fund Store and Financial Engines,” said Chip Roame, head of the consulting firm Tiburon Strategic Advisors. “This move continues a trend of PE firms acquiring IBDs.” Other industry watchers, like Nexus Strategy’s Tim Welsh, agree. “For...

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Want to Connect Better? Try Dan Arnold’s Technique

17:40 25 February in Articles Written by Jon Henschen by rafferty

February 22, 2019 By Jon Henschen, ThinkAdvisor  For deeper, longer relationships with clients and colleagues, advisors should take a cue from the head of LPL Financial.   Since 2001, I’ve made over 60 due diligence trips to independent broker-dealers. What stands out are the firms that have the ability to connect, not merely point out their list of strengths. One particular broker-dealer president shared the humble beginnings of his firm. When he and a group of his colleagues felt that their broker-dealers weren’t addressing their needs, they formed their own. They intended to form a broker-dealer “by advisors for advisors,” anticipating that other advisors who shared their concerns would want to be part of that kind of environment. During our discussion, this individual showed vulnerability and transparency as he explained that “early on, we didn’t really know...