The move is seen as a bet that more investors will want advice from independent financial advisers and less from Wall Street’s traditional brokers.
Founded in 2006, Focus has over 45 partner firms and affiliates across the US, Australia, Canada and the UK, with a joint venture in China.
“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 US and beyond,” said Henry Kravis, co-founder, co-chairman and co-chief executive of KKR.
“We look forward to supporting the firm’s continued success by leveraging our global network and resources,” he added in a statement announcing the deal.
Focus Financial completed over 20 acquisitions in 2016 and has already announced a further six in 2017.
Rudy Adolf, founder and chief executive of Focus Financial Partners, said Stone Point and KKR were 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 US and across the globe, and we remain committed to creating value for all of our shareholders.”
The sellers of the stake to Stone Point Capital and KKR were three existing private equity investors, Centerbridge Partners, Summit Partners and Polaris Partners, as well as certain wealth management affiliates and employees.
