Global investment firm KKR has announced the signing of a definitive agreement to acquire Janney Montgomery Scott LLC from The Penn Mutual Life Insurance Company. The acquisition will be executed through investment funds managed by KKR, according to a press release, marking a significant shift for Janney, a wealth management and investment banking firm.
Janney Montgomery Scott, with a history dating back to 1832, operates as a full-service wealth management, investment banking, and asset management firm. The company manages over $150 billion in assets and employs more than 900 financial advisors across 135 offices in the US. Following the transaction’s completion, Janney will operate as a standalone private entity.
Tony Miller, president of Janney, expressed enthusiasm about the new partnership. “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 advisor-centric culture and share our deep conviction in the tremendous opportunities ahead for our business,” Miller said.
KKR views the acquisition as a strategic move to capitalize on the growth potential in the US wealth management market. Chris Harrington, a partner at KKR, said in the release: “Janney’s well-respected brand, client-centric culture, and strong track record of growth have established it as a best-in-class business.”
Simon Greene, a director at KKR, added, “We have long admired Janney for its high-quality business, growth-oriented mindset, and dedication to customer success. We look forward to helping Janney’s talented team leverage the company’s strong foundations to reach even greater heights.”
The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to finalize in the fourth quarter of 2024. As part of the agreement, KKR plans to establish a broad-based equity ownership program for Janney’s 2,300 employees, giving them the opportunity to participate in the benefits of ownership after the transaction closes.
“This is a great outcome for both Janney and Penn Mutual,” said Dave O’Malley, chairman, president, and CEO of 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.”
Ardea Partners served as financial advisor, while Kirkland & Ellis LLP and Simpson Thacher & Bartlett LLP acted as legal advisors to KKR. WilmerHale served as legal advisor to Penn Mutual.
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