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Keller Williams has entered into a strategic partnership with private equity firm Stone Point Capital, according to an announcement on Monday.
Stone Point is no stranger to the real estate industry, as it also holds strategic investments in Lone Wolf Technologies, Homepoint, CoreLogic and Meridian.
“This is an exciting milestone for all Keller Williams agents and franchisees,” Gary Keller, the co-founder and executive chairman of Keller Williams, said in a prepared statement. “We’ve built an incredible foundation and as we focus on each agent’s personal development and their continual sales growth, we welcome the partnership and backing from the team at Stone Point Capital. With their commitment, we will also be exploring new ways to make sure top agents and franchisees who drive the growth of our business are able to share in its future success.”
The monetary terms of the deal were not disclosed. As a result of this deal, Keller Williams will now be owned by Keller, Stone Point Capital, and other members of the company’s leadership team. Keller will remain the company’s executive chairman.
According to Keller Williams, the partnership will allow it to “accelerate its focus on its next phase of growth and enhances its ability to expand, innovate and continue delivering value.” The company also notes that it will work with Stone Point’s leadership to expand and improve the agent branding and marketing resources as well as it offers, as well as the educational, coaching, data and technology resources it offers its franchisees, brokers and agents.
In an emailed statement, Keller Williams’ spokesperson Darryl Frost wrote that Stone Point’s investment “is in recognition of the company’s leadership, vision and efforts to drive innovation in the industry, reinforcing its position as the leading franchise brokerage firm.”
In addition to the partnership with Stone Point, the firm also announced leadership changes. Christopher Czarnecki is joining Keller Williams as its new CEO and president. This is a role that was vacated by Mark Willis in mid-January. Willis is now serving as the firm’s chief leadership officer. Stacie Herron, the firm’s chief legal and administrative officer, has been serving as interim chief operating officer.
“Keller Williams has built a global position and an incredible culture of growth and entrepreneurial achievement, and I am thrilled to be part of its next chapter and to serve and support the entire Keller Williams’ family,” Czarnecki said in a statement.
Czarnecki has over two decades of real estate industry experience. From 2017 until 2023 he served as the CEO of Broadstone Net Lease. During his time there he led the company’s $629 million IPO. In addition to this, he has previously served as CEO and abroad member of Broadstone Real Estate Access Fund and Broadtree Residential, and has held leadership roles in commercial real estate lending and credit analysis at BB&T.
As of right now, Frost said Keller Williams feels that it has the right leadership team in place to help it “continue driving growth and take it to the next level.”
“The focus now is on accelerating innovation, seizing the opportunities ahead of the company and strengthening support for agents, franchisees and our employees – they are the backbone of the business,” Frost wrote.
It’s not immediately clear “that next level” is; the company was rumored to have been pursuing a plan to go public in 2020 but it never materialized. Stone Point, a large asset manager, has a track record of putting companies it invests heavily in on a path toward an initial public offering.
The firms were advised by Citizens Capital Markets & Advisory, with Skadden, Arps, Slate, Meagher & Flom LLP serving as legal advisor to Keller Williams, and Kirkland & Ellis and Paul Weiss serving as legal advisors to Stone Point Capital.
“My congratulations to Gary on having built one of the most significant companies of the last 30 years in residential real estate in the US and the world,” Steve Murray, the co-founder of RealTrends Consulting, said. “I note that it is important, I’m sure, to all the people of Keller Williams that Gary and the senior team will be retaining a significant ownership stake, which means they will continue to benefit from his leadership.”
