KKR and The Penn Mutual Life Insurance Company announced the signing of a definitive agreement under which investment funds managed by KKR will acquire Janney Montgomery Scott LLC.
Founded in 1832, Janney is a wealth management, investment banking, and asset management firm. It has over $150 billion in AUMs, with more than 900 financial advisors providing financial planning, asset allocation, retirement planning, and other financial services and advice to clients in 135 offices across the U.S.
After the transaction closes, Janney will become an independent private company that will continue to operate autonomously.
“We are excited to enter this next chapter in our nearly 200-year history with a new value-added strategic partner. KKR has demonstrated that they value our client- and advisor-centric culture and share our strong belief in the tremendous opportunities ahead for our business,” said Tony Miller, president of Janney.
Additionally, Chris Harrington, a partner at KKR, commented that Janney’s brand and culture were fundamental to the agreement’s closure.
“Janney’s respected brand, client-centric culture, and strong growth track record have established it as a first-class business that we believe is well-positioned to benefit from the significant tailwinds driving demand in the U.S. wealth management market,” said Harrington.
KKR will support Janney in creating a broad equity ownership program to provide the firm’s 2,300 employees the opportunity to participate in the benefits of ownership after the transaction closes.
This strategy is based on the belief that team member participation through ownership is a key driver in building stronger companies. Since 2011, more than 50 KKR portfolio companies have awarded billions of dollars in total equity value to over 100,000 non-management employees, according to the text published by the firm.
The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close in the fourth quarter of 2024. KKR is making its investment in Janney primarily through its North America Fund XIII.
Ardea Partners acted as financial advisor, and Kirkland & Ellis LLP and Simpson Thacher & Bartlett LLP acted as legal advisors to KKR. WilmerHale acted as legal advisor to Penn Mutual.
