KKR to acquire Janney Montgomery Scott from Penn Mutual

Global investment firm KKR and The Penn Mutual Life Insurance Co. (“Penn Mutual”) have signed a definitive agreement under which investment funds managed by KKR will acquire Janney Montgomery Scott LLC. 

Established in 1832, Janney is a wealth management, investment banking and asset management firm with offices in Allentown, Bethlehem, Lancaster, Mechanicsburg and York. 

Janney has over $150 billion in assets under administration, with more than 900 financial advisors providing financial planning, asset allocation, retirement planning and other financial advice and services to clients across 135 offices in the U.S, according to KKR. 

After the transaction’s close, Janney will become a standalone private company that will continue to operate independently, KKR said in a release. 

“We are excited to enter this next chapter in our nearly 200-year history with a new value-added strategic partner. KKR has demonstrated they value our client- and advisor-centric culture and share our deep conviction in the tremendous opportunities ahead for our business,” said Tony Miller, president at Janney. “We look forward to working with KKR to invest further in our growth and enable our talented team to further improve the advice and services we offer our clients.” 

Chris Harrington, a partner at KKR, said, “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.” 

KKR said it will support Janney in creating a broad-based equity ownership program to provide the company’s 2,300 employees the opportunity to participate in the benefits of ownership after the transaction closes.  

This strategy is based on the belief that team member engagement through ownership is a key driver in building stronger companies, KKR said. Since 2011, more than 50 KKR portfolio companies have awarded billions of dollars of total equity value to over 100,000 non-senior management employees, the company said. 

“We have long admired Janney for its high-quality business, growth-oriented mindset and dedication to customer success. We look forward to helping Janney’s talented team leverage the company’s strong foundations to reach even greater heights,” said Simon Greene, a director at KKR. 

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

The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close in the fourth quarter of 2024. 

KKR said it is making its investment in Janney primarily through its North America Fund XIII.