Stone Point and KKR buy Focus Financial for $2 billion by employing massive leverage

Looks like the new strategy de jour is to announce an IPO as a bridge to a sale.

So, it cost 2 Billion... but we get no AUM or revenue? Sure would be nice. How does the Mutual Fund store sell for 6X gross?

Bopper, Focus Financial took media heat in January of 2015 for inflating its asset numbers when Financial Planning reporter Charles Paikert delved into Focus’s ADV. <a href="https://www.financial-planning.com/news/asset-gap-just-how-big-is-focus-financial" rel="nofollow">https://www.financial-planning.com/news/asset-gap-just-how-big-is-focus-financial</a> He found that the firm and its holding, Buckingham Asset Management, had been inflating its managed asset totals. Paikert reports that until 2014 Focus Financial was touting its total client assets at more than $70 billion. After doing the math, Paikert found that total assets under management for the firm under its ADV filings amounted to $31 billion under management and an additional $10 billion under advisement — bringing assets to $41 billion. Focus Financial declined to comment for the Paikert piece but Buckingham chief executive Adam Birenbaum did, expressing contrition for how his firm classified assets.

So let's say revenue is 350 m on 41 billion. 5-6X gross rev? Rich. Thanks for the follow up.