Research Update: Focus Financial Partners Inc. 'BB-' Ratings Affirmed On Reduced Financial Sponsor Ownership; Outlook Remains Stable

KKR&Co. Inc. and Stone Point Capital LLC, two financial sponsors with a significant ownership stake in Focus Financial Partners, completed a secondary offering during the first quarter of 2021. The financial sponsors, on a combined basis, now own less than 40% of Focus, so we have removed the financial sponsorship cap on the company. Nevertheless, we expect Focus' leverage, as calculated by S&P Global Ratings, to remain 4x-5x during the next 12 months. We affirmed our 'BB-' issuer credit and issue ratings on Focus. The stable outlook reflects our expectation that the company will operate with leverage, as calculated by S&P Global Ratings, between 4x and 5x during the next 12 months and post a double-digit percentage increase

...- KKR & Co. Inc. and Stone Point Capital LLC, two financial sponsors with a significant ownership stake in Focus Financial Partners, completed a secondary offering during the first quarter of 2021. The financial sponsors, on a combined basis, now own less than 40% of Focus, so we have removed the financial sponsorship cap on the company. - Nevertheless, we expect Focus' leverage, as calculated by S&P Global Ratings, to remain 4x-5x during the next 12 months. - We affirmed our '##-' issuer credit and issue ratings on Focus. - The stable outlook reflects our expectation that the company will operate with leverage, as calculated by S&P Global Ratings, between 4x and 5x during the next 12 months and post a double-digit percentage increase in revenues as a result of acquisitions completed during 2020 and 2021....

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