PE Firm KKR to Acquire Janney

Private equity firm KKR & Co. Inc. announced Tuesday that investment funds it manages will acquire Janney Montgomery Scott LLC from the Penn Mutual Life Insurance Co.

The deal shifts Janney’s more than $150 billion in assets to the private equity firm, along with an asset management, wealth management and investment banking company with roots dating back to 1832.

Janney, acquired by Penn Mutual in 1982, has more than 900 financial advisers offering financial planning, asset allocation, retirement planning and other financial advice and services to clients across 135 offices in the U.S.

“We are excited to enter this next chapter in our nearly 200-year history with a new value-added strategic partner,” said Tony Miller, Janney’s president, in a statement.

After the deal closes, Janney will remain an independent private business. Meanwhile, KKR will help Janney establish a broad-based stock ownership scheme to give its 2,300 workers ownership potential. The private equity firm stated that team member engagement through ownership is one of its strategies for building stronger companies.

“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 U.S. wealth management market,” said Chris Harrington, a partner in KKR, in a statement.

The transaction is expected to close in the year’s fourth quarter. KKR is investing in Janney primarily through its North America Fund XIII.

“Janney has been a strong investment for Penn Mutual’s general account for the last 40 years,” said Dave O’Malley, chairman, president and CEO at Penn Mutual, in a statement. “We have been good stewards and are looking forward to watching Janney’s next chapter of growth.”

Janney Montgomery completed an acquisition of its own this spring when it added Lewes, Delaware-based Shore to Shore Private Wealth. The wealth management firm also reported in July adding more than $2.2 billion in assets under advisement in the first half of 2024, with 12 financial advisers joining the firm.