KKR to Acquire $150 Billion Janney Montgomery Scott from Penn Mutual
Global investment firm KKR announced the signing of a definitive agreement under which investment funds managed by KKR will acquire Janney Montgomery Scott LLC from The Penn Life Insurance Company.
Tracing its roots to 1832, Janney is a wealth management, investment banking, and asset management firm with over $150 billion in assets under administration and more than 900 financial advisers providing financial planning, asset allocation, retirement planning, and other financial advice and services to clients across 135 offices in the United States.
“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 adviser-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.”
Following the close of the transaction, Janney will become a standalone private company that will continue to operate independently.
“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.
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.
KKR is making its investment in Janney primarily through its North America Fund XIII.
“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 and 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.”
The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close in the fourth quarter of 2024.
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds.
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