Focus Financial to receive significant investment

Two private equity groups are set to acquire a significant stake in Focus Financial Partners, the New York-based wealth management network looking to acquire Australian financial advice firms.

An investor group led by US-based Stone Point Capital and global investment firm KKR will acquire a majority stake in the company, which values Focus at approximately $2 billion, according to a statement.

Selling shareholders include Focus’ existing private equity investors, Centerbridge Partners, Summit Partners and Polaris Partners, as well as certain wealth management affiliates and employees, the statement said.

Focus has over 45 partner firms and affiliates across the US, Australia, Canada and the UK, with a joint venture in China.


ifa reported in May 2016 that Focus had expanded to Australia by partnering with Melbourne-based advice firm MW Lomax.

MW Lomax later announced last month it acquired Brisbane wealth management firm Westwood Group to create a “financial services powerhouse” across Queensland, Victoria and NSW.

In a statement to ifa, Focus co-founder Rajini Kodialam said this is “just the beginning” for the company as it looks to grow internationally.

“Since inception we have returned over $1 billion in capital to partners and are extremely profitable, supported by our strong balance sheet and solid cash flows,” she said.

“Our model of never turning an entrepreneur into an employee, value-add and access to capital has resonated across the market and on an international scale.”

“Since the beginning of the year, we have closed 10 transactions bringing our total number of partners up to 47 (only 46 have been announced),” she continued.

“This is just the beginning of an extremely exciting new chapter in what is still a very young Focus and we are eager to see where this leads us as we look into the future both in the US and our international markets.”


Focus Financial to receive significant investment
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