Private equity firm Warburg Pincus has agreed to acquire a majority stake in Texas-based broker-dealer Kestra Financial from Stone Point Capital.

Stone Point will retain a minority holding in the business. Financial terms of the transaction were not divulged.

Kestra management team, along with several advisers will continue to hold equity positions in the business.

Warburg Pincus managing director Jeff Stein said: “We are committed to supporting Kestra Financial in their mission to build the leading wealth management platform to empower the success of their financial advisers.”

The deal is pending regulatory nod and is expected to be wrapped up in the second or third quarter of 2019.

Kestra said that the transaction will not affect its staff or advisers.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Moreover, existing clients will not require repapering.

Kestra CEO James Poer said: “Our new relationship with Warburg Pincus, and continued relationship with Stone Point, will allow us to continue building on the shared success we have achieved.”

Recent acquisitions by Warburg Pincus

To date, Warburg Pincus’ 17 funds have invested over $73bn in more than 855 firms globally.

In March 2017, Warburg Pincus announced the acquisition of a 35% stake in Swiss fintech firm Avaloq from existing shareholders.

The private equity firm increased its holding in Avaloq to 45% in November of the same year after buying Raiffeisen Switzerland’s 10% stake in the fintech firm.

In September 2017, Warburg Pincus purchased a 49% stake in Chinese asset manager Fortune SG.