Penn Mutual sells wealth management subsidiary to KKR

The Penn Mutual Life Insurance Company, based in Philadelphia, on Tuesday inked a new agreement under which investment funds managed by global investment firm KKR will acquire Penn Mutual’s wholly-owned subsidiary, Janney Montgomery Scott LLC.

“This is a great outcome for both Janney and Penn Mutual,” said Dave O’Malley, chairman, president, and chief executive officer 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.”

Janney, a leading wealth management, investment banking, and asset management firm, has more than $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 United States.

Following the close of the transaction, Janney will become a standalone private company that will continue to operate independently.

“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 Janney President Tony Miller. “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.”

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

“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 at KKR.

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

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

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