Company News

Newport Group Secures New Investment Partner in Kelso & Company

Jun 8, 2018

Walnut Creek, CA—June 8, 2018—Newport Group, a leading provider of retirement plans, insurance, and consulting services, announced today that the company has reached an agreement with the private equity firm Kelso & Company (Kelso). Kelso will make a significant investment in Newport Group and provide access to capital to help fund the future growth of the company. 

Newport Group is currently majority owned by funds managed by Stone Point Capital, LLC (Stone Point). Following the closing of the transaction, Kelso-managed funds will hold a majority interest in the company with the Stone Point funds and management continuing to hold a minority interest. 

The investment by Kelso is expected to be finalized in 90 to 120 days, subject to regulatory approval.

“We are excited to partner with Kelso and Stone Point in the continued growth of our organization,” said Newport Group Chief Executive Officer Greg Tschider. “We value the support of our private equity partners, which allows us to successfully execute our business strategy, further our growth, and continue adding resources to our organization.”

“Newport Group is a leader in the retirement services industry,” said Chris Collins, Managing Director of Kelso. “The company has experienced significant growth and expansion and is extremely well positioned for the future. We look forward to supporting Newport Group’s plans for growth in the years ahead.”

“We are incredibly proud of Newport Group’s success. We look forward to our continued partnership with Greg Tschider and the rest of the talented management team and are excited to continue to support the company’s growth,” said Fayez Muhtadie, Principal at Stone Point.

About Newport Group

Headquartered in Walnut Creek, California, Newport Group is a leading independent retirement services firm that helps employers – and the advisors who serve them – prepare employees for a more financially secure retirement. The company has more than $100 billion in retirement assets under administration and more than $250 billion in corporate retirement and insurance assets. Newport Group maintains investment objectivity, fee transparency and a commitment to flexible, responsive service. Staffed by an exceptional team of more than 1,200 retirement, insurance and consulting professionals, the company provides retirement solutions tailored to the needs of employers of every size, from small businesses to the Fortune 1000. 

About Kelso

Kelso is one of the oldest and most established firms specializing in private equity investing. Since 1980, Kelso has invested over $13 billion of equity capital in 124 transactions. Kelso was founded by the inventor of the Employee Stock Ownership Plan (“ESOP”) and, as a result, the principles of partnership and alignment of interest serve as the foundation of the firm’s investment philosophy. Kelso benefits from a successful investment track record, deep sector expertise, a long-tenured investing team, and a reputation as a preferred partner to management teams and corporates. Kelso has significant experience investing in financial services, having deployed over $2 billion of equity capital in the sector over the past decade. The firm is based in New York, New York. For more information, please visit www.kelso.com.

About Stone Point Capital

Stone Point Capital LLC is a financial services-focused private equity firm based in Greenwich, Connecticut. The firm has raised and managed seven private equity funds – the Trident Funds – with aggregate committed capital of approximately $19 billion. Stone Point targets investments in the global financial services industry, including investments in companies that provide outsourced services to financial institutions, banks and depository institutions, asset management firms, insurance and reinsurance companies, insurance distribution and other insurance-related businesses, specialty lending and other credit opportunities, mortgage services companies and employee benefits and healthcare companies. For more information, please visit www.stonepoint.com.


 

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Newport Group, Inc. and its affiliates provide recordkeeping, plan administration, trust and custody, consulting, fiduciary consulting, insurance and brokerage services. Fiduciary consulting services are provided through Newport Group Securities, Inc., an SEC-registered investment adviser and FINRA-registered broker-dealer, and Newport Group Consulting, LLC, an SEC-registered investment adviser. Newport Group Securities, Inc. and Newport Group Consulting, LLC are affiliates of Newport Group, Inc. All securities transactions are provided through Newport Group Securities, Inc., in its role as broker-dealer. All fiduciary consulting services are provided through the registered investment advisers. When offering variable insurance products, Newport Group Securities, Inc. acts solely in its capacity as a broker-dealer. Trust and custody services provided by Newport Trust Company, a New Hampshire state chartered trust company and wholly owned subsidiary of Newport Group, Inc.