NFP Completes Sale of Majority Stake in Kestra Financial
Majority interest to funds managed by Stone Point Capital LLC
NEW YORK – June 27, 2016 – NFP, a leading insurance broker and consultant that provides employee benefits, property & casualty, retirement, and individual insurance and wealth management solutions, today announced it 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 Chief Executive Officer 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. We look forward to continued growth and expanding the NFP footprint.”
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 Mr. Hammond.
“We are excited for our continued partnership with Kestra and Stone Point,” said Hammond. “We value the relationship we built with Kestra throughout our history and look forward to a mutually successful future.”
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.
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 3,400 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 the 2nd fastest-growing U.S. large-group employee benefits brokers by Employee Benefit Adviser. In addition, Business Insurance ranked 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. PlanSponsor ranked 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 NFP.com.
Gregory FCA for NFP