The financial terms of the transaction were not disclosed. The deal also speaks to continued vigour in North America's wealth management space, and the role of private equity in many of these deals.

KKR is to acquire Janney Montgomery Scott from The Penn Mutual Life Insurance Company. JMS, which provides wealth and asset management, and investment banking, has over $150 billion in assets under administration.

Once the deal is closed, Janney will become a standalone private company that will continue to operate independently, KKR said in a statement yesterday. 

The specific financial terms of the deal were not disclosed. The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close in the fourth quarter of 2024. KKR is making its investment in Janney primarily through its North America Fund XIII.

“Janney’s well-respected brand, client-centric culture and strong track record of growth have established it as a best-in-class business that we believe is well-positioned to benefit from the significant tailwinds driving demand in the US wealth management market,” Chris Harrington, a partner at KKR, said. 

“This is a great outcome for both Janney and Penn Mutual,” Dave O’Malley, chairman, president and CEO at Penn Mutual, said. “Janney has been a strong investment for Penn Mutual’s general account for the last 40 years.”

Ardea Partners served as financial advisor and Kirkland & Ellis and Simpson Thacher & Bartlett served as legal advisors to KKR. WilmerHale served as legal advisor to Penn Mutual.