Kestra Holdings Announces Recapitalization and Renewed Partnership with Stone Point Capital

Kestra Holdings announced that funds managed by Stone Point Capital LLC, a leading private equity firm specializing in global financial services, have agreed to acquire a majority interest in Kestra Holdings’ parent partnership. Stone Point will replace Warburg Pincus LLC, a global growth investor, as the majority shareholder. Oak Hill Capital, another private equity firm, will remain a minority owner. The management team at Kestra, along with a large group of Kestra-affiliated financial advisors and principals from Bluespring Wealth Partners, will retain equity stakes in the company. Bluespring Wealth Partners serves as Kestra Holdings’ acquisition arm.

Stone Point first invested in Kestra in 2016, helping the firm spin out from NFP, before becoming a minority investor in 2019. The firm later sold its interest to Oak Hill in 2022. Stone Point’s return as a majority shareholder signals strong confidence in Kestra’s leadership, mission, and financial services platform.

During its partnership with Warburg Pincus, Kestra Holdings significantly expanded its service offerings and technology platform, built Kestra Investment Management, and grew Bluespring Wealth Partners into a major acquisition player in the wealth management space.

This recapitalization positions Kestra for accelerated growth, enhancing its recruiting capabilities, service and technology platform, and expanding its wealth management acquisition business. Kestra will continue its focus on serving independent financial advisors by strengthening its wealth management services, including Kestra Financial and Kestra Private Wealth Services, and increasing its acquisition of top-tier wealth management firms through Bluespring Wealth Partners.

“We’re grateful for our successful partnership with Warburg Pincus and excited to reunite with Stone Point,” said James Poer, CEO of Kestra Holdings. “Stone Point’s previous involvement was instrumental in building our unique value proposition—supporting successful wealth management businesses through a holistic approach that values their entrepreneurial legacy. With the continued backing of Stone Point and Oak Hill, we look forward to scaling our platform and enhancing our expertise to further serve and acquire established wealth management firms.”

Stone Point, with over 25 years of private equity experience and more than $35 billion in capital commitments, has invested in over 160 companies across various sectors.

“We are excited to once again partner with James and the Kestra team,” said Fayez Muhtadie, Co-Head of Private Equity at Stone Point. “We believe Kestra is a standout platform in independent wealth management, and we look forward to driving further growth for the advisors it supports.”

Jeff Stein, Managing Director at Warburg Pincus, added, “Our partnership with Kestra has been exceptional, and we are confident that the organization will continue to thrive under the leadership of Stone Point and Oak Hill.”

The transaction is expected to close in the first quarter of 2025, pending regulatory approval. No changes are anticipated for Kestra’s employees, financial advisors, or operations, and advisors’ clients will not be required to repaper their accounts.

Evercore acted as financial advisor to Kestra Holdings, with legal counsel provided by Wachtell, Lipton, Rosen & Katz, and Paul, Weiss, Rifkind, Wharton & Garrison LLP. Goldman Sachs & Co. LLC acted as financial advisor to Stone Point, and Simpson Thacher & Bartlett LLP served as legal counsel.

For more information, visit www.kestraholdings.com.

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