One of the world's largest investment firms, specializing in fields such as private equity, has bought a stake in Beacon Pointe. The wealth manager, based in California’s Newport Beach, has expanded rapidly over the past two years, driven in part by a number of acquisitions.

Private equity giant Kohlberg Kravis Roberts, aka KKR, has taken a stake in the US wealth management group Beacon Pointe, which itself has made a number of acquisitions over recent months. The transaction is part of a wider busy trend of M&A activity across the North American wealth management sector.

Under the terms of the transaction, Beacon Pointe’s team will continue to own more than half of the company. Abry Partners will exit its investment in the business completely as a result of the transaction, KKR said in a statement. 

KKR, which at the end of September oversaw $459 billion of assets, said that its investment will provide Beacon Pointe with growth capital to support “key priorities” and bolster its expansion strategy 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,” KKR said in a statement yesterday.

Founded in 2002, Beacon Pointe Advisors has more than $20 billion in assets under management and more than 110 financial advisors serving more than 10,000 clients in 27 offices across the US. 

Over the past 18 months, the company has grown by $10 billion in assets under management and has nearly doubled its professional staff.

Beacon Point has chalked up eight acquisitions in 2021 and several more are expected to close before the end of the year; it is on pace for its busiest year yet.  

KKR, which is making its investment in Beacon Pointe through its North American private equity strategy, expects to close the transaction 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 its legal counsel. Ardea Partners LP served as the financial advisor to KKR, and Kirkland & Ellis LLP served as its legal counsel.