Jefferson National CEO Mitchell H. Caplan, who led the management team that orchestrated the buyoutl, said the new capital will be used to expand its registered investment advisor (RIA) and fee-based advisor distribution strategy.

As part of the $83 million transaction, Jefferson National, architect of the flat-fee variable annuity, will use its new capital to accelerate growth and target several areas: high-net-worth (HNW) investors, RIAs and fee-based advisors, and new products and services for financial advisors.

“We couldn't be more pleased with the exceptional roster of investors who have put their resources behind us and are extremely fortunate that Eric Schwartz will serve in the role of non-executive chairman of the company,” Caplan said.

Robert Covington, managing director of The Stephens Group, said the transaction furthers the firm's strategy of investing in financial services companies with a fast-growing and unique position in an expanding market.

With a national network of more than 1,500 RIAs and fee-based advisors, Jefferson National is a leading distributor to the fee-based channel. Jefferson National in 2005 launched Monument Advisor, the first flat-insurance fee variable annuity with the industry's largest selection of more than 350 funds.

Schwartz, who has agreed to be a non-executive chairman of Jefferson National, is a private investor who is a former partner and management committee member of Goldman, Sachs who served as Co-CEO of Asset Management.

FPF is a proprietary investment fund that seeks to provide primary, secondary and special situations capital to financial services business.

The Stephens Group LLC is a private, family-owned firm that invests its capital in private and public companies.