Stone Point Capital Acquires Majority Stake in NFP Advisor Services
NFP Advisor Services to rebrand as Kestra Financial
NEW YORK – April 4, 2016 – NFP, a leading insurance broker and consultant, has entered into an agreement with funds managed by Stone Point Capital LLC (Stone Point), a private equity firm focused on investing in the global financial services industry. In connection with the transaction, NFP Advisor Services will change its name to Kestra Financial. As part of the agreement, Stone Point will acquire majority ownership of Kestra, and NFP’s ultimate parent will maintain a substantial minority ownership stake.
The transaction will contribute to Kestra’s continued long-term success by enhancing the services and differentiated capabilities it offers independent financial advisors. Stone Point’s expertise in financial services will further strengthen Kestra’s wealth management solutions, integrated technology platform and business consulting offerings. The transaction, which is subject to customary closing conditions, is expected to close within 90 days. Terms of the transaction were not disclosed.
Douglas Hammond, Chairman and Chief Executive Officer of NFP, commented, “We built Kestra as a premium service provider for the independent advisor marketplace, and in recent years, NFP and Kestra have each experienced tremendous growth. This agreement creates an optimal structure for NFP and Kestra, and enables NFP to focus on its core insurance brokerage and consulting competencies while promoting continued alignment between the two companies. We look forward to partnering with Stone Point and are confident that Kestra is well-positioned for long-term success.”
The agreement between NFP and Stone Point ensures a sustained relationship between NFP and Kestra, with Mr. Hammond serving as a member of Kestra’s Board of Directors. Additionally, NFP and Kestra have entered into long-term reciprocal agreements for Kestra to serve as the preferred broker-dealer and registered investment adviser for NFP offices and membership organizations. James Poer, President and Chief Executive Officer of Kestra, said, “We’ve always been dedicated to serving the most sophisticated, top-tier independent financial advisors with customized service and first-class technology. We look forward to accelerating the delivery of next-generation tools and resources to empower financial advisors through our new partnership with Stone Point. We are grateful to NFP for its partnership and continued alignment.”
Chuck Davis, CEO of Stone Point, said, “Stone Point is delighted to be partnering with NFP, James Poer and the rest of the talented team at Kestra. Together, we share a common vision and strategy for growing the business, including expanding its presence across the U.S. We believe in Kestra’s leadership team, the advisors that Kestra serves and the service proposition of strong independent broker-dealers in today’s dynamic market place.”
Bank of America Merrill Lynch acted as the exclusive financial advisor, and Ropes & Gray acted as legal advisor to NFP in the transaction.
At NFP Corp., our solutions and expertise are matched only by our personal commitment to each client's goals. We’re a leading insurance broker and consultant that provides employee benefits, property & casualty, retirement, and individual insurance and wealth management solutions through our licensed subsidiaries and affiliates.
NFP has more than 3,600 employees and global capabilities. Our expansive reach gives us access to highly rated insurers, vendors and financial institutions in the industry, while our locally based employees tailor each solution to meet our clients' needs. We’ve become one of the largest insurance brokerage, consulting and wealth management firms by building enduring relationships with our clients and helping them realize their goals.
Recently NFP was ranked by Business Insurance as the 5th largest global benefits broker by revenue, the 4th largest US-based privately owned broker and the 11th largest broker of US business. In addition, PlanSponsor named us the 5th largest executive benefits provider of nonqualified deferred compensation by number of plans, and we were ranked 11th in personal lines P&C revenue by Insurance Journal.
For more information, visit www.nfp.com.
About Kestra Financial
Kestra Financial, Inc. provides a leading independent advisor platform that empowers sophisticated independent financial professionals, including traditional and hybrid RIAs, to prosper, grow and provide superior client service. With a culture rich in reinvention and advisor advocacy, we’ve developed integrated business management technology that, combined with our personalized consulting services, offers exceptional scale and efficiency.
Headquartered in the “Silicon Hills” of Austin, Texas, Kestra Financial offers an experience as unique as the city in which it operates. The firm supports more than 1,700 independent financial advisors in delivering comprehensive securities and investment advisory services to their clients. Kestra Financial is the parent company of Kestra Investment Services, LLC, member FINRA/SIPC, and of Kestra Advisory Services, LLC, Kestra Private Wealth Services, LLC, and Kestra Institutional Services, LLC, all federally registered investment advisers. For more information about Kestra Financial, visit www.kestrafinancial.com.
About Stone Point Capital LLC
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. In addition to the capital invested by the Trident Funds, Stone Point has secured more than $7 billion of equity co-investments since 2001. 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, please visit Stone Point’s website at www.stonepoint.com.
Forward Looking Statements
This press release contains forward-looking statements. Forward-looking statements include, without limitation, any statement that may project, indicate or imply future results, events, performance or achievements, and may contain the words “anticipate,” “expect,” “intend,” “plan,” “believe,” “estimate,” “may,” “project,” “will,” “continue” and similar expressions of a future or forward-looking nature. Forward-looking statements are based on beliefs and assumptions using currently available information with respect to future results. These statements are only predictions and are not guarantees of future performance. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated by a forward-looking statement. These risks and uncertainties include, without limitation, the following factors: (1) the transaction may not be consummated in a timely manner, if at all; (2) the diversion of management's attention from ongoing business operations; (3) the effect of the announcement of the transaction on business relationships, operating results and business generally; and (4) the failure to obtain the requisite regulatory approvals to the transaction.
For NFP and Kestra Financial:
For Stone Point Capital LLC: