Acquisition
Stone Point Capital Completes Acquisition of Kestra Holdings
•February 13, 2026
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Why It Matters
Kestra’s aggressive headcount expansion could position it for a strategic transaction, highlighting consolidation pressures in the broker‑dealer market. The hiring trends also illustrate how private‑equity‑backed firms leverage talent shifts to boost valuation.
Key Takeaways
- •Kestra added two LPL recruiters to boost hiring.
- •Recruited ~130 Commonwealth advisors in 2025.
- •Private‑equity ownership reverted to Stone Point Capital.
- •Kestra captured 19% of departing Commonwealth advisors.
- •Potential sale hinted by advisor headcount surge.
Pulse Analysis
The financial‑advisor hiring landscape has entered a feverish phase after LPL Financial’s $2.7 billion purchase of Commonwealth. That deal released more than 650 advisors, creating a talent vacuum that competitors are scrambling to fill. Firms with robust recruiting pipelines, such as LPL itself, have become de‑facto talent incubators, allowing them to place advisors across the industry and shape market dynamics without directly acquiring every individual practice.
Kestra Financial’s recent actions reflect a calculated response to this environment. By onboarding two seasoned LPL recruiters and previously securing a batch of Commonwealth advisors, Kestra has accelerated its headcount growth to over 1,300 advisors, a figure that could enhance its appeal to potential acquirers. The timing coincides with a private‑equity ownership flip—Stone Point Capital retaking control—suggesting that investors see value in scaling the platform before a possible exit. Such moves are typical in PE‑driven financial services, where increasing assets under management and advisor density directly influence exit multiples.
For the broader broker‑dealer sector, Kestra’s strategy underscores the importance of talent acquisition as a lever for growth and valuation. As consolidation continues, firms that can quickly integrate new advisors while maintaining cultural fit will likely capture market share. Meanwhile, the ripple effect of LPL’s acquisition may spur further advisor migrations, prompting rivals to double down on recruiting capabilities or explore strategic partnerships to stay competitive.
Deal Summary
Funds managed by Stone Point Capital have completed the acquisition of Kestra Holdings, ending Warburg Pincus’s majority ownership and leaving Oak Hill Capital as a minority stakeholder. The deal, announced in early February 2026, was undisclosed financially and positions Kestra for further growth in the independent broker‑dealer market.
Article
Source: InvestmentNews – ETFs (tag)
After hiring Commonwealth advisors and LPL recruiters, what’s next for Kestra?
February 13, 2026 – Bruce Kelly
Against the backdrop of a successful recruiting effort last year, Kestra has been revamping its lineup of recruiters.
Kestra recruited close to 130 financial advisors in 2025 from the boutique Commonwealth Financial Network and is adding firepower to its effort to hire more advisors. It has recently picked up two headhunters from LPL Financial, the industry’s leading firm in hiring financial advisors.
Kestra’s focus on building its total number of advisors has industry executives with two minds: Kestra may be looking to boost its financial‑advisor headcount for a pending sale, or it simply may be taking advantage of a frothy financial‑advisor hiring market, due in large part to LPL’s $2.7 billion cash acquisition of its rival Commonwealth.
“To me, this looks like Kestra could be getting ready for a deal,” said one senior industry executive who spoke privately to InvestmentNews about the matter. “They’re beefing up the numbers, and it’s owned by private equity.”
Others weren’t so sure a Kestra transaction is imminent.
“Kestra did really well with Commonwealth advisors because it’s truly a good cultural fit,” said another industry executive, who also spoke privately to InvestmentNews. “Recruiters from LPL also come with a pipeline. Kestra only had a handful of recruiters so hiring two more doesn’t seem significant.”
“As a policy, Kestra does not comment on market speculation,” a company spokesperson said.
According to its website, Kestra Financial has more than 1,300 financial advisors working across its platform and $142 billion in total assets.
A report last month from AdvizorPro and Muriel Consulting showed that 653 advisors left Commonwealth since the firm announced its sale to LPL at the end of March 2025. Muriel Consulting’s report found Raymond James (33 %) to be the biggest winner of departing Commonwealth advisors, followed by Kestra (19 %), and Cambridge Investment Research (11 %).
Last June, Kestra Financial internally promoted James Collins, then senior vice president of business development, to executive vice president, business development.
Kestra has been picking up recruiters from LPL Financial, the largest broker‑dealer in terms of headcount with 33,000 financial advisors on its platform and a recruiting powerhouse.
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In January, Kestra hired Austin Shives, formerly of LPL Financial, as vice president, business development based in Tampa, Fla.
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This month, it hired Benjamin Marks, who worked for LPL in Milwaukee, as vice president, business development consultant.
The firm has also recently seen a change in ownership. Kestra Holdings announced the completion of its acquisition by funds managed by Stone Point Capital, a private‑equity firm focused on global financial services and related industries, replacing funds managed by Warburg Pincus, the company’s former majority owner. Warburg Pincus bought Kestra from Stone Point in 2019, so last year’s transaction was a mirror image of the earlier deal. Private‑equity firm Oak Hill Capital remains a minority owner.
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