NFP Completes Sale of Majority Stake in Kestra Financial

Majority interest to funds managed by Stone Point Capital LLC

NEW YORK--(BUSINESS WIRE)-- 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.

About NFP

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.

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. 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, visit www.stonepoint.com.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160627005155/en/

Media
For NFP
Marissa Foy, 610-228-2104
[email protected]
or
For Kestra Financial
610-228-2103
[email protected]
or
For Stone Point Capital LLC
Emanuel Citron, 203-862-2974
[email protected]

Source: NFP

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