Stone Point Returns as Kestra's Top Private Equity Backer

Kestra Holdings is undergoing a significant private equity recapitalization through a renewed partnership with Stone Point Capital.

Stone Point first invested in Kestra in 2016, supporting its spinout from NFP before becoming a minority investor in 2019. Stone Point sold its share to Oak Hill Capital in 2022.

With the new investment, Stone Point will acquire a majority interest in the parent partnership of Kestra Holdings, replacing current partner Warburg Pincus LLC. Oak Hill will remain a minority owner.

The Kestra Holdings management team and a large number of Kestra-affiliated financial advisors and Bluespring-affiliated principals will also retain equity positions in the company, according to the announcement. Bluespring Wealth Partners is the acquisition arm of Kestra Holdings.

“We’re pleased with the successful partnership we had with Warburg Pincus and are excited to once again partner with Stone Point,” said James Poer, CEO of Kestra Holdings, in a statement. “Stone Point’s expertise and partnership previously helped propel us along a successful path to establishing our unique value proposition — to support successful wealth management businesses … while focusing on the lifecycle of their entrepreneurial efforts.”

With the backing from Stone Point and Oak Hill, Kestra will continue scaling up its platform and will seek to grow its expertise in serving and acquiring established wealth management firms seeking a monetization path that respects their legacy, Poer added.