RIA consolidator Focus Financial Partners is seeking to raise $100 million via an inititial public offering (IPO), according to a filing with the Securities and Exchange Commission (SEC).
Focus was most recently valued at $2 billion, when private equity firms Stone Point Capital and KKR acquired a majority stake in the company in April 2017 for an undisclosed price.
A Focus spokeswoman did not immediately respond to a request for comment.
Goldman Sachs, Bank of America Merrill Lynch, KKR, BMO Capital Markets, RBC Capital Markets and SunTrust Robinson Humphrey are serving as joint bookrunners on the deal, which will place shares of Focus on the Nasdaq under the ticker FOCS.
The SEC filing gives investors their first look under the hood of Focus, which has equity stakes in more than 50 RIAs.
It shows that for the fiscal year of 2017, Focus lost $48.4 million and recorded adjusted Ebitda of $145.2 million on $662.9 million in revenue. It lost $12.1 million and posted adjusted Ebitda of $44.2 million on $196.2 million in revenue for the first quarter of 2018.
‘We recognize that being a public company comes with responsibility that goes beyond just the legal standards,’ Focus chief executive Rudy Adolf wrote in a letter to investors.
‘We intend to manage Focus with a high level of transparency and continue to invest carefully and manage the business with a long-term perspective motivated by business fundamentals.’
Focus has developed a healthy business recruiting breakaway advisor teams from wirehouses. Earlier this week, the firm announced it had poached an $800 million group from Merrill Lynch. Adolf told investors Focus would continue to ‘selectively’ recruit advisors from that space.
‘We believe only selective brokers can be successful entrepreneurs and are willing to commit to the fiduciary standard,’ Adolf wrote.