Keller Williams Takes Private Equity Investment

Keller Williams Realty will sell an equity investment stake to CoreLogic parent Stone Point Capital after decades remaining staunchly privately owned.

Stone Point will make a significant investment in the nation’s largest real estate brokerage by agent count in a deal expected for weeks — the company will be owned by Gary Keller, Stone Point Capital and “other members of the company’s leadership team,” Inman first reported. The investment size or ownership breakdown wasn’t disclosed.

The Austin-based company named Christopher Czarnecki president and CEO. Mark Willis stepped out of his position as CEO and president in late January; Stacie Herron, the company’s chief legal and administrative officer, had been serving as interim COO.

Rumors began circulating that a major ownership change was in store for Keller Williams weeks ago. At the firm’s “Family Reunion” conference in Las Vegas, some representatives for Stone Point lurked “incognito,” brokers told Steve Murray, president of REAL Trends Consulting.

“It wouldn’t surprise me if Gary is selling a big chunk of it but not giving up control,” Murray said. Keller would not be likely to part with his majority ownership stake after recently making efforts to increase the company’s profitability in expectation of a higher valuation in the years to come, he said.

Gary Keller will continue in his role as executive chairman, along with other brokerage leaders John Keller, Mo Anderson and Joe Williams, a company-wide email sent Monday morning said.

“Please know that this decision was made for one reason only. To help you. I’m not going anywhere,” Keller said in the email.

Keller Williams is one of just a few of the country’s top franchises that never went public; Douglas Elliman was the most recent among its competitors to do so with its IPO in December 2021.

KW’s new president and CEO Czarnecki brings six years of experience as CEO for REIT Broadstone Net Lease’s CEO, where he led the company’s $629 million IPO in September 2020. While private equity deals may typically portend a public offering, spokesperson Darryl Frost declined to comment on whether the investment was meant in part to bring the firm closer to going public.

Gary Keller began speaking of an exit strategy years ago. He first stepped down as CEO in 2015. After taking the role again from former CEO John Davis, Keller said in an email announcing his stepping down in fall 2020 that he had planned to get out of it from the start.