Private equity behemoth KKR on Tuesday agreed to buy broker dealer Janney Montgomery Scott from Penn Mutual, adding to its bets in the financial services industry.
The New York-based private investment group is making the buyout through its $19bn flagship private equity fund.
KKR has previously invested in wealth managers Beacon Pointe and Söderberg & Partners.
Chris Harrington, a partner at KKR, said the firm believed Janney was “well-positioned to benefit from the significant tailwinds driving demand in the US wealth management market”.
Janney has more than $150bn in assets under administration and has been owned by Penn Mutual for 40 years. Terms of the transaction, which is expected to close in the fourth quarter, were not disclosed.
