View this article online: https://www.insurancejournal.com/news/national/2016/06/27/418425.htm
NFP, an insurance broker and consultant, has completed the sale of a majority stake in Kestra Financial (Kestra) to funds managed by Stone Point Capital LLC (Stone Point), a private equity firm focused on investing in the financial services industry. Under the terms of the transaction, NFP’s ultimate parent will maintain a substantial minority ownership interest in Kestra.
The agreement to sell the majority stake in Kestra was previously announced on April 4, 2016 and the transaction closed on June 24, 2016.
Douglas Hammond, chairman and CEO of NFP, commented, “As we look to the future, we remain committed to strengthening our presence in the insurance brokerage and consulting space and to providing the highest quality resources to our clients. The completion of this transaction is a tangible step toward our ongoing business objectives.”
Previously known as NFP Advisor Services, Kestra is a leading independent broker-dealer and registered investment advisor headquartered in Austin, TX. Kestra supports over 1,700 independent financial advisors nationwide. Kestra President and CEO, James Poer, will continue to lead the firm, and its board of directors will include Hammond.
BofA Merrill Lynch acted as the exclusive financial advisor, and Ropes & Gray acted as legal advisor to NFP in the transaction. The financial terms were not disclosed.
NFP Corp. is an insurance broker and consultant that provides employee benefits, property/casualty, retirement, and individual insurance and wealth management services. NFP has more than 3,400 employees and global capabilities.
Kestra Financial Inc. provides an independent advisor platform for independent financial professionals. Headquartered in the “Silicon Hills” of Austin, Texas, Kestra Financial supports more than 1,700 independent financial advisors in delivering comprehensive securities and investment advisory services to their clients.
Stone Point Capital LLC is a financial services-focused private equity firm based in Greenwich, Conn.
Source: NFP Corp.