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KKR Invests In Beacon Pointe

KKR is to make an investment in Beacon Pointe, one of the largest RIAs in the United States and the largest female-led independent RIA in the country.

The Beacon Pointe team will continue to own over 50% of the Company going forward; 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; it will further invest in technology, personnel and employees’ professional growth, and will establish a Beacon Pointe charitable fund.

“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 firm has grown by $10bn 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.”

Previous investor Abry Partners will fully exit its investment in Beacon Pointe as a result of the deal. 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.”

Beacon Pointe has over $20bn in assets under management and more than 110 financial advisors serving more than 10,000 clients. 2021 marks its busiest year in terms of acquisitions; the firm has closed eight deals this year with the expectation of more before year end.

“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 served as the exclusive financial advisor to Beacon Pointe and Alston & Bird served as legal counsel. Ardea Partners served as the financial advisor to KKR, and Kirkland & Ellis served as legal counsel.

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