KKR Invests In $20 Billion RIA Beacon Pointe Advisors

It was “an ideal time to fuel our next chapter of growth,” Matt Cooper, president of Beacon Pointe Advisors, said about the private equity firm’s investment.

Commie Stevens, Shannon Eusey, and Matt Cooper (Courtesy of Beacon Pointe Advisors)

Commie Stevens, Shannon Eusey, and Matt Cooper

(Courtesy of Beacon Pointe Advisors)

Private equity giant KKR has invested in Beacon Pointe Advisors, one of the largest independent RIAs managing more than $20 billion in assets, the companies announced Tuesday.

How much KKR invested in the RIA, and at what valuation, could not be confirmed. An unnamed source told Barron’s, which was first to report the deal, that Beacon Pointe was valued at more than $1 billion after KKR’s investment. Beacon Pointe leadership and employees will still own slightly more than 50 percent of the wealth manager after the deal closes and KKR will own the rest, according to the Barron’s story.

Abry Partners, a Boston-based equity firm and investor in Beacon Pointe, will fully divest from the RIA as a result of the transaction. Abry Partners could not be reached to comment on the deal.

“We are grateful to Abry for their support as an early investor in our business and we are very excited for a bright future ahead with our new strategic partner, KKR,” Commie Stevens, chief practice officer at Beacon Pointe, wrote in a statement.

The deal is expected to close before year-end, subject to customary closing conditions.

On Wednesday, shares of KKR (NYSE: KKR) were trading at $78, the same price they closed at on Tuesday, the day the deal was announced.

“With the support of KKR’s deep experience and resources, Beacon Pointe will have the opportunity to further invest in the business and continue to expand our footprint across the nation,” Shannon Eusey, CEO at Beacon Pointe, wrote in the press release.

Capital from KKR will go toward further investment in technology, personnel, and employees’ professional growth, and will establish a Beacon Pointe charitable fund, according to the press release. Beacon also plans to open new offices and continue acquisitions as part of its national expansion strategy. The RIA has 27 offices across the U.S. and more than 110 financial advisors serving more than 10,000 clients.

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The firm says it is experiencing a period of “significant” growth. In 2021, the company closed eight deals to acquire other wealth managers and it expects several more to close by the end of the year. In the past 18 months, Beacon Pointe has doubled its staff, and assets under management grew by $10 billion. The company has 285 staff listed in its website directory, up from 256 employees reported by RIA Intel in April.

“It is really something to think back to our humble roots when we founded Beacon Pointe twenty years ago,” Garth Flint, co-founder of Beacon Pointe Advisors, said in a statement. “I am very happy to see our institutional origins and entrepreneurial spirit still intact through our ongoing growth. We have incredible people at Beacon Pointe, and it is incredible people that make a wonderful impact on creating positive, long-lasting client experiences.”

On Monday, KKR announced that it had partnered with Global Infrastructure Partners to acquire all outstanding shares of CyrusOne, a global data REIT, in a deal valued at $15 Billion. Earlier this year, KKR partnered with iCapital Network to create an investment company to inherit and manage a $430 million

Holly Deaton (@HollyLDeaton) is a staff writer at RIA Intel and based in New York City.

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