Focus Financial Partners To Receive Significant Investment from Stone Point Capital and KKR
April 18 2017 - 6:00PM
Business Wire
Focus Financial Partners (‘Focus’), a leading international
partnership of independent, fiduciary wealth management firms,
announced today that an investor group led by Stone Point Capital
(‘Stone Point’) and KKR will acquire a majority stake in the
company, which values Focus at approximately $2 billion. Selling
shareholders include Focus’ existing private equity investors,
Centerbridge Partners, Summit Partners and Polaris Partners, as
well as certain wealth management affiliates and employees. This is
the third liquidity event for Focus and its wealth management
affiliates since 2013. Focus’ senior management team will continue
to lead the business and each will remain a significant
shareholder.
Rudy Adolf, Founder and CEO of Focus Financial Partners, said,
“Stone Point and KKR are highly regarded investors who support
entrepreneurs in the financial services industry. A key reason for
our partnership is the vision we share for continued growth. 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.”
"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. "We are
excited to enhance their continued expansion with our sector
expertise and deep network of relationships throughout the
financial services industry."
"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.
Founded in 2006, Focus has over 45 partner firms and affiliates
across the United States, Australia, Canada and the United Kingdom,
with a joint venture in China. In August 2016, Focus was named one
of the nation’s fastest-growing companies by Inc. magazine for the
fifth time.* Focus’ model – which combines entrepreneurship,
value-add to partners, and access to capital – has resonated in the
marketplace, with over 20 acquisitions completed in 2016 and six
already announced in 2017.
Goldman, Sachs & Co., BofA Merrill Lynch and BMO Capital
Markets served as financial advisors to Focus, and RBC Capital
Markets and SunTrust Robinson Humphrey served as financial advisors
to the investor group. RBC Capital Markets and SunTrust Robinson
Humphrey also provided committed financing for the transaction.
Focus was represented by Vinson & Elkins, and with respect to
financing by Weil, Gotshal & Manges. Stone Point was
represented by Kramer Levin Naftalis & Frankel, and with
respect to the financing by White & Case LLP. KKR was
represented by Simpson Thacher & Bartlett LLP; Centerbridge
Partners was represented by Paul, Weiss, Rifkind, Wharton &
Garrison LLP and Paul Hastings LLP; Summit Partners was represented
by Kirkland & Ellis; and Polaris Partners was represented by
Goodwin Procter.
The closing of the transaction is subject to customary approvals
and expected in mid-2017.
About Focus Financial Partners
Focus Financial Partners is a leading partnership of
independent, fiduciary wealth management firms. Focus provides
superior access to best practices, resources, and continuity
planning for its partner firms who serve individuals, families,
employers and institutions with wealth management, benefits
consulting and investment consulting services. Focus partner firms
maintain their operational independence, while they benefit from
the synergies, scale, economics and best practices of a market
leader to achieve their business objectives. For more information
about Focus Financial Partners, please visit
www.focusfinancialpartners.com.
About Stone Point Capital
Stone Point Capital LLC is a financial services-focused private
equity firm based in Greenwich, CT. The firm has raised and managed
six private equity funds – the Trident Funds – with aggregate
committed capital of approximately $13 billion. Stone Point targets
investments in the global financial services industry, including
investments in companies that provide outsourced services to
financial institutions, banks and depository institutions, asset
management firms, insurance and reinsurance companies, insurance
distribution and other insurance-related businesses, specialty
lending and other credit opportunities, mortgage services companies
and employee benefits and healthcare companies. For further
information about Stone Point, see www.stonepoint.com.
About KKR
KKR is a leading global investment firm that manages investments
across multiple asset classes including private equity, energy,
infrastructure, real estate, credit and hedge funds. KKR aims to
generate attractive investment returns by following a patient and
disciplined investment approach, employing world-class people, and
driving growth and value creation at the asset level. KKR invests
its own capital alongside its partners' capital and brings
opportunities to others through its capital markets business.
References to KKR's investments may include the activities of its
sponsored funds. For additional information about KKR &
Co. L.P. (NYSE:KKR), please visit KKR's website
at www.kkr.com and on Twitter @KKR_Co.
* The Inc. 5000 award is based on a ranking of 5,000
privately-owned companies based in the United States, based on
percentage of growth of annual revenues over a three year period.
Awards were based on information supplied by the firms and required
a small application fee.
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version on businesswire.com: http://www.businesswire.com/news/home/20170418006648/en/
Media:STONE POINT CAPITAL / U.S.Todd Haskins, +1
203-862-2900thaskins@stonepoint.comorFOCUS FINANCIAL PARTNERS /
U.S.Daijing Lin, +1 646-775-6412dlin@focuspartners.comorKKR
/ U.S.Kristi Huller or Cara Kleiman, +1
212-750-8300media@kkr.com
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