KKR, the private-equity firm, announces that its investment funds will acquire Janney Montgomery Scott, a prominent wealth management firm with $150 billion in assets, from The Penn Mutual Life Insurance Company.
The transaction, set to finalize in the fourth quarter, remains undisclosed in terms of financial specifics. KKR’s interest in Janney stems from the firm’s impressive growth trajectory and strategic position within the wealth management industry. KKR aims to assist Janney in expanding its business and plans to introduce an equity ownership program for Janney’s 2,300 employees post-transaction.
Chris Harrington, a partner at KKR, states, “Janney’s respected brand, client-centric culture, and robust growth record make it a standout in the industry. We believe it’s well-positioned to capitalize on the increasing demand in the U.S. wealth management market.”
Post-acquisition, Janney will operate as a standalone private entity. This Philadelphia-based firm, established in 1832, boasts over 900 financial advisors and maintains a significant East Coast presence with 135 offices. As one of the largest regional broker-dealers, Janney has successfully attracted advisors from major national firms like Merrill Lynch.
Tony Miller, Janney’s president, expresses enthusiasm for the partnership, saying, “We’re thrilled to embark on this new chapter with KKR, a partner that values our client- and advisor-centric culture. We anticipate tremendous opportunities ahead and look forward to working with KKR to further enhance our growth and service offerings.”
The acquisition of Janney marks one of the largest investments by a private-equity firm in the wealth management sector, an area known for its consistent revenue streams. PE firms have increasingly invested in RIAs, independent broker-dealers, and companies providing technology and asset management services to wealth managers. Notably, Envestnet recently agreed to a $4.5 billion acquisition by Bain Capital.
KKR, based in New York, has a history of investing in the wealth management sector, including stakes in Beacon Pointe, an RIA, and Focus Financial, a network of RIAs.
Janney has been under Penn Mutual’s ownership since 1982. CEO Dave O’Malley remarks, “This deal with KKR is an excellent outcome for both Janney and Penn Mutual. Janney has been a solid investment for our general account over the past 40 years. We have been good stewards and are excited to see Janney’s next phase of growth.”
