Investment funds managed by global investment firm KKR will acquire Janney Montgomery Scott from Penn Mutual as part of a definitive agreement announced by KKR and Penn Mutual.
Janney has more than $150 billion in assets under administration. Its over 900 financial advisors provide financial planning, asset allocation, retirement planning and other financial advice and services to clients across 135 offices in the U.S.
After the transaction closes, which is expected in the fourth quarter of 2024, Janney will become a standalone private company that will continue to operate independently, according to a press release.
KKR is making its investment in Janney mainly through its North America Fund XIII.
KKR plans to support Janney in creating a broad-based equity ownership program for all of the company’s 2,300 employees, giving them an “opportunity to participate in the benefits of ownership after the transaction closes,” according to a press release. “This strategy is based on the belief that team member engagement through ownership is a key driver in building stronger companies.” Since 2011, over 50 KKR portfolio companies have awarded billions of dollars of total equity value to over 100,000 non-senior management employees.
“We are excited to enter this next chapter in our nearly 200-year history with a new value-added strategic partner,” said Tony Miller, President of Janney.
“KKR has demonstrated they value our client- and advisor-centric culture and share our deep conviction in the tremendous opportunities ahead for our business,” Miller added. “We look forward to working with KKR to invest further in our growth and enable our talented team to further improve the advice and services we offer our clients.”
“Janney’s well-respected brand, client-centric culture and strong track record of growth have established it as a best-in-class business that we believe is well-positioned to benefit from the significant tailwinds driving demand in the U.S. wealth management market,” according to Chris Harrington, a Partner at KKR.
Calling the acquisition a “great outcome for both Janney and Penn Mutual,” Dave O’Malley, Chairman, President and CEO at Penn Mutual, said: “Janney has been a strong investment for Penn Mutual’s general account for the last 40 years.”
Ardea Partners served as financial advisor and Kirkland & Ellis and Simpson, Thacher & Bartlett served as legal advisors to KKR. WilmerHale served as legal advisor to Penn Mutual.
Jeff Berman, Contributing Editor & Reporter at Wealth Solutions Report, can be reached at jberman@wealthsolutionsreport.com.
