Stone Point and KKR buy Focus Financial for $2 billion by employing massive leverage

PE giants with loans of about $1 billion -- psyched that the roll-up's roll flow is snowballing in 2017 -- cash out Centerbridge, Polaris, Summit, several advisors and employees

Author Brooke Southall April 19, 2017 at 4:39 AM

4 Comments

Rudy Adolf: A key reason for our partnership is the vision we share for continued growth.

Dan Seivert

David Devoe

Jeff Spears

Jessica Bibliowicz

Rudy Adolph

ECHELON Partners

Sanctuary

NFP Advisor Services Group

KKR

Focus Finacial

Chuck Davis

Stone Point

Henry Kravis

Jeff Spears

April 19, 2017 — 3:13 PM

Looks like the new strategy de jour is to announce an IPO as a bridge to a sale.

Big Bopper

April 19, 2017 — 7:23 PM

So, it cost 2 Billion... but we get no AUM or revenue? Sure would be nice. How does the Mutual Fund store sell for 6X gross?

brooke southall

April 19, 2017 — 8:51 PM

Bopper, Focus Financial took media heat in January of 2015 for inflating its asset numbers when Financial Planning reporter Charles Paikert delved into Focus’s ADV. <a href="https://www.financial-planning.com/news/asset-gap-just-how-big-is-focus-financial" rel="nofollow">https://www.financial-planning.com/news/asset-gap-just-how-big-is-focus-financial</a> He found that the firm and its holding, Buckingham Asset Management, had been inflating its managed asset totals. Paikert reports that until 2014 Focus Financial was touting its total client assets at more than $70 billion. After doing the math, Paikert found that total assets under management for the firm under its ADV filings amounted to $31 billion under management and an additional $10 billion under advisement — bringing assets to $41 billion. Focus Financial declined to comment for the Paikert piece but Buckingham chief executive Adam Birenbaum did, expressing contrition for how his firm classified assets.

Big Bopper

April 19, 2017 — 9:11 PM

So let's say revenue is 350 m on 41 billion. 5-6X gross rev? Rich. Thanks for the follow up.

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DeVoe & Company
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Top Executive: David DeVoe