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February 27, 2019updated 01 Mar 2019 10:38am

Warburg Pincus to purchase majority stake in Kestra Financial

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.

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.

 

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