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Stone Point and KKR buy Focus Financial for $2 billion by employing massive leverage

PE giants with loans of about $1 billion -- psyched that the roll-up's roll flow is snowballing in 2017 -- cash out Centerbridge, Polaris, Summit, several advisors and employees

Author Brooke Southall
April 19, 2017 at 4:39 AM
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Rudy Adolf: A key reason for our partnership is the vision we share for continued growth.

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Dan Seivert's ripping success in RIA M&A deals has odd side effect of having some sidearm staff leave for new vistas

Carolyn Armitage and Mark Bruno left to mutual benefit, while Echelon Partners roars on, feeding the beast of deal-crazed RIA buyers and sellers.

July 20, 2021 at 1:17 AM

New-look Hightower hires Abby Salameh and takes a 'Hurley-style' stake in a $4.8 billion DFA RIA

The Chicago roll-up gets a chief marketing officer who gets RIAs as it becomes part-Dynasty, part- Fiduciary Network in adopting a very 2019 deal structure for LourdMurray

May 3, 2019 at 7:11 PM

Mentioned in this article:

DeVoe & Company
Consulting Firm
Top Executive: David DeVoe

Jeff Spears

Jeff Spears

April 19, 2017 — 3:13 PM
Looks like the new strategy de jour is to announce an IPO as a bridge to a sale.
Big Bopper

Big Bopper

April 19, 2017 — 7:23 PM
So, it cost 2 Billion... but we get no AUM or revenue? Sure would be nice. How does the Mutual Fund store sell for 6X gross?
brooke southall

brooke southall

April 19, 2017 — 8:51 PM
Bopper, Focus Financial took media heat in January of 2015 for inflating its asset numbers when Financial Planning reporter Charles Paikert delved into Focus’s ADV. <a href="https://www.financial-planning.com/news/asset-gap-just-how-big-is-focus-financial" rel="nofollow">https://www.financial-planning.com/news/asset-gap-just-how-big-is-focus-financial</a> He found that the firm and its holding, Buckingham Asset Management, had been inflating its managed asset totals. Paikert reports that until 2014 Focus Financial was touting its total client assets at more than $70 billion. After doing the math, Paikert found that total assets under management for the firm under its ADV filings amounted to $31 billion under management and an additional $10 billion under advisement — bringing assets to $41 billion. Focus Financial declined to comment for the Paikert piece but Buckingham chief executive Adam Birenbaum did, expressing contrition for how his firm classified assets.
Big Bopper

Big Bopper

April 19, 2017 — 9:11 PM
So let's say revenue is 350 m on 41 billion. 5-6X gross rev? Rich. Thanks for the follow up.

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