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PE Firm Acquires Majority Stake in NFP Advisor Services

NFP has entered into an agreement with funds managed by private equity firm Stone Point Capital LLC.

As part of the agreement, Greenwich, Conn.-based Stone Point will acquire majority ownership of Kestra, and NFP’s ultimate parent will maintain a substantial minority ownership stake, and, in connection with the transaction, NFP Advisor Services will change its name to Kestra Financial.

Douglas Hammond, Chairman and Chief Executive Officer of NFP, will serve 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.

According to a press release, the transaction will enhance 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.

Austin, Texas-based Kestra Financial supports more than 1,700 independent financial advisors in delivering securities and investment advisory services to their clients. According to the firms, the agreement enables NFP to focus on its core insurance brokerage and consulting competencies while promoting continued alignment between the two companies.

The transaction, which is subject to customary closing conditions, is expected to close within 90 days. Terms of the transaction were not disclosed. BofA Merrill Lynch acted as the exclusive financial advisor, and Ropes & Gray acted as legal advisor to NFP in the transaction.

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