NEW YORK--(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
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
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.
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
View source version on businesswire.com: http://www.businesswire.com/news/home/20170418006648/en/
STONE POINT CAPITAL / U.S.
FINANCIAL PARTNERS / U.S.
Daijing Lin, +1 646-775-6412
Kristi Huller or Cara Kleiman, +1 212-750-8300
Source: Focus Financial Partners
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