Stone Point, KKR Invests in Focus Financial

NEW YORK — Focus Financial Partners, a leading international partnership of independent, fiduciary wealth management firms, announced that an investor group led by Stone Point CapitalĀ  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 shareholder.

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 KKR.

Founded in 2006, Focus has over 45 partner firms and affiliates across the United States, Australia, Canada and theUnited 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.