KKR to acquire Janney

Private equity giant KKR is buying Philadelphia-based broker-dealer Janney Montgomery Scott LLC.

Janney, which dates to 1832, operates as a full-service wealth management, investment banking, and asset management firm. KKR announced Tuesday that it will acquire the firm from The Penn Mutual Life Insurance Company, its owner since 1982.

After the deal closes, Janney, which has more than $150 billion in assets, will remain an independent firm, according to the press release announcing the deal.

Janney has 66 employees dedicated to municipals in 14 offices, according to a spokesperson.

"KKR is investing because they believe in our business model, what we are already doing, and our strategic plan. Janney will continue with its current strategy, which has delivered impressive growth to date," the spokesperson said in an email.

The acquisition comes as the firm has been growing its public finance and municipals teams. Vivian Altman is head of public finance. Bill Reisner, who joined Janney in late 2023 from Oppenheimer, is Janney's head of the municipal fixed income group with responsibility over municipal sales, trading, underwriting, research, and banking activities.

In May, the firm brought on Paul Creedon, Citi's former co-head of municipal banking and public finance as head of national infrastructure. The firm also hired several other employees, including Mike McCullough, who will support transportation and infrastructure coverage efforts and develop a "healthcare vertical," the firm said at the time.

In June, the firm hired Louis English as head of municipal sales for its Chicago office. Reisner told The Bond Buyer at the time that the hire showed that the firm's "growth plan is not table talk, it's real, and we have significant capital behind it to really execute on our plan."

Year-to-date, Janney ranks 26th among top underwriters with a par amount of 953.47 million achieved in 48 issues, according to LSEG. In 2023, the firm underwrote $1.104 billion in 71 issues and ranked 33rd.

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

KKR said the acquisition comes as it expects rising demand in the wealth management sector. "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 deal is expected to close in the fourth quarter. Financial terms were not disclosed.