sidebar

Connect: 319-210-7700

Connect: 319-210-7700

archive

Kestra Tag

Financial Advisor IQ a Financial Times Service

Kestra Makes Big Play to Buy Books of Business From Retiring Advisors

21:16 23 May in In the News by rafferty

May 23, 2019 By Mrinalini Krishna, Financial Advisor IQ Kestra Financial is looking to buy out books of retiring high-producing advisors, both within and outside of its network. Kestra CEO James Poer says that while the strategy had its origins in the thinking of its previous owner, NFP, it is a focus this year “that will build a large national wealth management business that focuses on serving the succession needs of independent wealth management firms.” Kestra currently has about 10 firms and an aggregate $3.5 billion in assets that it has accumulated in this channel. The strategy looks at buying assets of advisors with at least $2 million in topline revenue, and Poer says in 2019 the firm is looking to close another five to eight deals. “I think in terms of earnings, that...

Financial Planning logo

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...

ThinkAdvisor logo

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...