Yet another word association is removing out of a broker-dealer business.
NFP Corp., a heading word attorney and consultant, on Monday pronounced it was offered a infancy interest of a eccentric broker-dealer, NFP Advisor Services, to supports managed by private equity emporium Stone Point Capital. In tie with a transaction, NFP Advisor Services will change a name to Kestra Financial, according to a matter from a companies involved.
Based in Austin, NFP Advisor Services in 2015 reported $452.5 million in sum revenues and had 1,383 producing purebred member and advisers, according to this year's InvestmentNews consult of eccentric broker-dealers. The terms of a understanding were not disclosed in a statement.
Madison Dearborn, a private equity firm, acquired NFP for $1.3 billion in 2013.
According to a statement, NFP's primogenitor “will say a estimable minority tenure stake.”
Two decades ago, a word attention became smitten with eccentric broker-dealers as they looked for new ways to discharge their products. The risk compared with bonds dealers during and after a credit predicament decreased word companies' ardour for eccentric broker-dealers. Dutch insurer ING AV sole a U.S. sell financial recommendation business, and Ameriprise Financial Inc., a item manager and word giant, sole a eccentric broker-dealer Securities America Inc.
Now, a Department of Labor's tentative fiduciary rule, that many design to be expelled this week, is also hastening a depart of some word companies from a sell financial recommendation industry.
For example, American International Group Inc. in Jan pronounced it was offered a AIG Advisor Group to private-equity organisation Lightyear Capital and Canadian grant manager PSP Investments. “It's a business we are not a best owners of, in light of intensity Department of Labor rules,” Peter Hancock, arch executive of AIG, pronounced during a time. At a finish of February, MetLife Inc. pronounced it was offered a U.S. confidant section to Massachusetts Mutual Life Insurance Co.
The sale of NFP Advisor Services to a private equity organisation was not associated to a entrance DOL fiduciary rule, pronounced James Poer, a boss and CEO of a broker-dealer. “What's pushing a eventuality is expansion on a dual sides of a business, a brokerage and word consulting sides,” he said. “They will grow improved by being separate.”
He pronounced that a new name of a firm, Kestra Financial, is subsequent from a kestrel or sparrow hawk, that is famous for a speed, liveliness and vision. “It's not your customary 3 letters,” Mr. Poer noted.
The agreement between NFP and Stone Point ensures a postulated attribute between NFP and a confidant group, a newly rechristened Kestra, according to a press release. NFP authority and CEO Douglas Hammond will offer as a member of Kestra's board. Additionally, NFP and Kestra have entered into long-term reciprocal agreements for Kestra to offer as a elite broker-dealer and purebred investment confidant for NFP offices and membership organizations.
NFP has had a remarkable Wall Street pedigree. Jessica Bibliowicz, a daughter of Sandy Weill, was a company's arch executive from 1999 until after a sale to Madison Dearborn.
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