Kestra Holdings Completes Recapitalization with Stone Point Capital
Deal News | Feb 03, 2025 | Stone Point Capital LLC
Kestra Holdings has successfully completed a recapitalization process involving its acquisition by Stone Point Capital. Stone Point Capital replaces Warburg Pincus as the majority stakeholder, with Oak Hill Capital maintaining a minority ownership. The recapitalization strengthens Kestra's financial standing, enabling it to continue its strategic growth initiatives focused on supporting independent financial advisors. Through subsidiaries such as Kestra Financial and Kestra Private Wealth Services, Kestra Holdings plans to accelerate its acquisition strategy within the wealth management sector. The transaction benefits from Stone Point’s expertise in financial services, and Kestra’s management team will retain equity stakes, underscoring their commitment to the company’s growth and legacy.
Sectors
- Financial Services
- Private Equity
- Wealth Management
Geography
- United States – Kestra Holdings is based in Austin, Texas, and Stone Point Capital is based in Greenwich, CT, indicating a primary geographical focus in the United States.
Industry
- Financial Services – Kestra Holdings provides comprehensive securities, trust, and investment advisory services through its subsidiaries, which align with the financial services sector.
- Private Equity – Stone Point Capital, Oak Hill Capital, and Warburg Pincus are private equity firms involved in the recapitalization and ownership restructuring of Kestra Holdings.
- Wealth Management – Kestra Holdings focuses on wealth management platforms and services, which are enhanced by the recapitalization and future growth strategy.
Financials
- More than $55 billion – Stone Point Capital's assets under management.
- Over $23 billion – Oak Hill Capital's raised initial capital commitments and co-investments.
- More than $86 billion – Warburg Pincus's assets under management.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Kestra Holdings | Target company | Company | A company offering wealth management platforms and services to independent financial advisors. |
| Stone Point Capital LLC | Bidding company | Company | A private equity firm that has acquired a majority stake in Kestra Holdings. |
| Warburg Pincus LLC | Selling company | Company | The former majority owner of Kestra Holdings, replaced by Stone Point Capital. |
| Oak Hill Capital | Other company | Company | A minority owner in Kestra Holdings, maintaining its stake post-recapitalization. |