Strategic Partnership to Enhance Growth of Leading Wealth Management Firm and Accelerate M&A Strategy
NEWPORT BEACH, CA and NEW YORK, NY – November 15, 2021 – Beacon Pointe, LLC, parent company to Beacon Pointe Advisors, LLC (“Beacon Pointe” or the “Company”) and KKR, a leading global investment firm, today announced the signing of a definitive agreement under which KKR will make an investment in Beacon Pointe. The Beacon Pointe team will continue to own over 50% of the Company going forward, and Abry Partners (“Abry”) will fully exit its investment in Beacon Pointe as a result of this transaction.
KKR’s investment will provide Beacon Pointe with growth capital to support key priorities and continue the Company’s strategy for national expansion through new office openings and acquisitions. Beacon Pointe’s brand, culture and executive leadership team will remain intact, and clients will continue to receive the same level of high-quality, high-touch and high-tech services, delivered by the same core advisory teams. With KKR’s support, Beacon Pointe will further invest in technology, personnel and employees’ professional growth, and will establish a Beacon Pointe charitable fund.
Founded in 2002, Beacon Pointe Advisors is one of the largest independent registered investment advisory (RIA) firms in the nation with over $20 billion in assets under management and more than 110 financial advisors serving more than 10,000 clients in 27 offices across the U.S. Beacon Pointe’s proprietary allWEALTH® approach provides clients access to institutional quality investments, strategic life and legacy planning, and impact initiatives. As the largest female-led independent RIA in the country serving foundations, retirement plans and private clients, Beacon Pointe further differentiates itself with its dedicated Women’s Advisory Institute launched in 2011 to help women reach their financial goals.
“We are particularly excited about what this strategic partnership will mean for our team, company growth and, most importantly, the services we provide to our clients,” said Beacon Pointe CEO, Shannon Eusey. “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 and the Beacon Pointe team have built an incredibly dynamic, client-centric business, which we are excited to invest behind as they continue to take the company to new heights,” said Chris Harrington, KKR Partner who leads KKR’s Financial Services investment team. “With its differentiated model, thoughtful approach to growth, and exceptional focus on client experience, Beacon Pointe is well-positioned to continue gaining share and scale within the growing and highly fragmented U.S. RIA market.”
The investment from KKR comes during a period of significant growth for Beacon Pointe. Over the past 18 months, the Company has grown by $10 billion in assets under management and has nearly doubled its professional staff.
“It is really something to think back to our humble roots when we founded Beacon Pointe twenty years ago,” commented Garth Flint, co-founder of Beacon Pointe Advisors. “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.”
Commie Stevens, Beacon Pointe Chief Practice Officer, said, “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.”
With eight acquisitions already closed in 2021 and several more expected to close before the end of the year, Beacon Pointe is on pace for its busiest year yet. The Company has extensive plans for ongoing expansion and growth that it expects to be able to accelerate with the support of KKR.
“We have a remarkable level of organic growth and acquisition-based growth at Beacon Pointe, and we know that a growing company is one that provides our clients with a superior service experience, greater professional development opportunities for our team and the opportunity to have an even larger positive impact within our communities. It is in this spirit that the successful evolution of our business makes now an ideal time to fuel our next chapter of growth,” said Matt Cooper, President of Beacon Pointe Advisors.
KKR is making its investment in Beacon Pointe through its North American private equity strategy. The transaction is expected to close before year-end, subject to customary closing conditions.
Goldman Sachs & Co. LLC served as the exclusive financial advisor to Beacon Pointe and Alston & Bird LLP served as legal counsel to the Company. Ardea Partners LP served as the financial advisor to KKR, and Kirkland & Ellis LLP served as legal counsel to KKR.
About Beacon Pointe Advisors
Beacon Pointe Advisors is a multi-billion-dollar registered investment adviser headquartered in Newport Beach, California, with office locations and clients located nationally. Clients have long relied on Beacon Pointe’s professional advisors to help determine investment goals, establish asset allocation guidelines, screen investment managers for selection, evaluate fund performance, and develop strategic financial plans through our proprietary allWEALTH® approach. Our advisors’ extensive expertise and strong commitment to our clients can be seen through numerous awards, including recognition from Bloomberg, Forbes, Financial Advisor Magazine, CNBC, Barron’s and more. For more information on Beacon Pointe’s wealth advisory services, please visit: www.beaconpointe.com.
About KKR
KKR is a leading global investment firm that offers alternative asset management and capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of The Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.
For Beacon Pointe Advisors:
Allison Warner, Chief Marketing Officer
949-718-1634
For KKR:
Julia Kosygina and Miles Radcliffe-Trenner
212-750-8300