Warburg-Kestra deal signals challenges ahead
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...
