KKR has agreed to invest an undisclosed sum in Beacon Pointe, one of the largest independent RIAs in the U.S. with over $20 billion in AUM and more than 110 financial advisors in 27 offices.
KKR is making its investment in Beacon Pointe through its North American private equity strategy.
The female-led Beacon Pointe team will continue to own over 50% of the company going forward and Abry Partners will fully exit its investment in Beacon Pointe as a result of this transaction. Upon the closing of the transaction at the end of the year, KKR will own the other half of the firm, but management is expected to increase its stakes as Beacon Pointe completes more acquisitions in the marketplace.
As the largest female-led independent RIA in the country serving foundations, retirement plans and private clients, Beacon Pointe also has a 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.”
The move follows a partnership with the iCapital platform earlier this year that had the firms creating a new RIA and subsidiary of iCapital. The deal also speaks to the growing interest on the part of global private market powerhouses to make strategic inroads in the RIA marketplace in order to attract retail clients.
Over the past 18 months, Beacon Pointe has grown by $10 billion in assets under management and has nearly doubled its professional staff.
KKR said its investment in Beacon Pointe will support key priorities and continue the company’s strategy for national expansion through new office openings and acquisitions. Officials stressed that 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.
“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.”
