KKR to Acquire Janney Montgomery Scott from Penn Mutual
July 23 2024 - 4:15PM
Business Wire
KKR, a leading global investment firm and The Penn Mutual Life
Insurance Company (“Penn Mutual”) today announced the signing of a
definitive agreement under which investment funds managed by KKR
will acquire Janney Montgomery Scott LLC (“Janney” or the
“Company”).
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Tracing its roots to 1832, Janney is a leading wealth
management, investment banking and asset management firm. Janney
has over $150 billion in assets under administration, with more
than 900 financial advisors providing financial planning, asset
allocation, retirement planning and other financial advice and
services to clients across 135 offices in the U.S.
Following the close of the transaction, Janney will become a
standalone private company that will continue to operate
independently.
“We are excited to enter this next chapter in our nearly
200-year history with a new value-added strategic partner. KKR has
demonstrated they value our client- and advisor-centric culture and
share our deep conviction in the tremendous opportunities ahead for
our business,” said Tony Miller, President at Janney. “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,” said Chris Harrington, a Partner at
KKR.
“We have long admired Janney for its high-quality business,
growth-oriented mindset and dedication to customer success,” said
Simon Greene, a Director at KKR. “We look forward to helping
Janney’s talented team leverage the company’s strong foundations to
reach even greater heights.”
“This is a great outcome for both Janney and Penn Mutual,” said
Dave O’Malley, Chairman, President & Chief Executive Officer at
Penn Mutual. “Janney has been a strong investment for Penn Mutual’s
general account for the last 40 years. We have been good stewards
and are looking forward to watching Janney’s next chapter of
growth.”
KKR will support Janney in creating a broad-based equity
ownership program to provide all of the company’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 engagement through ownership is a key driver in
building stronger companies. Since 2011, more than 50 KKR portfolio
companies have awarded billions of dollars of total equity value to
over 100,000 non-senior management employees.
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 served as financial advisor and Kirkland &
Ellis LLP and Simpson Thacher & Bartlett LLP served as legal
advisors to KKR. WilmerHale served as legal advisor to Penn
Mutual.
About Janney Montgomery Scott LLC
Janney is a leading full-service wealth management, capital
markets, and asset management firm dedicated to putting client
needs first. We are committed to providing individuals, families,
businesses, and institutions with tailored financial advice to help
reach their personal or business goals. We focus on building strong
relationships, supported by a foundation of trust and performance.
With a history of strength and stability, an ability to execute,
and a culture of service and collaboration, we continue to deliver
on our mission of offering the highest standard of success in
financial relationships. Janney is a wholly-owned, independently
operated subsidiary of The Penn Mutual Life Insurance Company, a
member of the Financial Industry Regulatory Authority, the New York
Stock Exchange, and Securities Investor Protection Corporation.
Additional company information is available at www.janney.com.
About KKR
KKR is a leading global investment firm that offers alternative
asset management as well as capital markets and insurance
solutions. KKR aims to generate attractive investment returns by
following a patient and disciplined investment approach, employing
worldclass 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
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. For
additional information about Global Atlantic Financial Group,
please visit Global Atlantic Financial Group’s website at
www.globalatlantic.com.
About The Penn Mutual Life Insurance Company
For over 175 years, Penn Mutual has empowered individuals,
families and businesses on the journey to achieve their financial
goals. Through our partnership with Financial Professionals across
the U.S., we help generations grow stronger by instilling the
confidence and reliability that comes from a secure financial
future. Penn Mutual and its affiliates offer a comprehensive suite
of competitive and robust solutions to meet the unique needs of
Financial Professionals and their clients, including life
insurance, annuities, wealth management and institutional asset
management. To learn more, including current financial strength
ratings, visit www.pennmutual.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20240723034699/en/
Media Contacts For KKR Julia Kosygina and Emily
Cummings (212) 750-8300 media@kkr.com For Janney Montgomery
Scott Bradd DelMuto (215) 665-6595
corporatecommunications@janney.com For Penn Mutual Stephanie
Kensy Penn Mutual 215-956-8337
corporatecommunications@pennmutual.com
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