The deal, which was announced earlier this year, has been met with mixed reactions from investors, with some expressing frustration over the offer while others acknowledged that taking Focus private is worth exploring.
Focus Financial Partners, which operates as a wealth management platform, has been expanding its footprint in recent years through a series of acquisitions.
The firm closed on nine RIA transactions during the third quarter of 2023, including two new partner firms and seven mergers on behalf of partner firms. Year to date, the firm has either closed or announced 24 transactions with a combined $20.5 billion in client assets.
The acquisition by CD&R and Stone Point Capital is expected to accelerate Focus’ growth and enhance its value proposition for independent wealth management firms. The deal will allow Focus to continue its aggressive expansion strategy while providing its partner firms with access to a wider range of resources and support.
The Deal: Focus Financial Partners and CDR
Focus Financial Partners, a leading partnership of independent, fiduciary wealth management firms, has been acquired by Clayton, Dubilier & Rice (CDR) and Stone Point Capital for over $7 billion in a take-private deal. The deal was announced in February 2023 and has now been closed.
CDR is a private equity firm that focuses on investing in businesses with significant potential for operational improvement and growth. Stone Point Capital is a private equity firm that specializes in the financial services industry, including asset management, insurance, and banking.
The acquisition of Focus Financial Partners by CDR and Stone Point Capital marks a significant milestone for the wealth management industry. Focus Financial Partners is a leading partnership of independent wealth management firms, providing access to various practices, resources, and continuity planning services for its partner firms.
With the acquisition, CDR and Stone Point Capital will be able to expand their presence in the wealth management industry and capitalize on the growth opportunities available in the market.
The acquisition was an all-cash transaction, with CDR and Stone Point Capital acquiring all outstanding shares of Focus Financial Partners. Under the terms of the agreement, Focus Financial Partners will become a privately held company, and its shares will no longer be traded on the NASDAQ stock exchange.
The acquisition of Focus Financial Partners by CDR and Stone Point Capital is expected to create significant value for both companies. With the combined expertise and resources of the two companies, they will be able to offer a broader range of services to their clients and expand their businesses globally.
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