Investor group acquires Duff & Phelps for $4.2 billion
23 January 2020
An investor group led by Stone Point Capital and Further Global has agreed to acquire financial services firm Duff & Phelps for $4.2 billion, the companies said on Wednesday.
New York-based Duff & Phelps, which advises clients on valuations, corporate finance, compliance and regulatory matters, said the consortium is buying the stake from Permira Funds, which will retain a significant stake in the business after the deal.
As part of the transaction, the Duff & Phelps management team will continue to lead the company and hold a “meaningful” stake, the company stated in a release.
The transaction is subject to customary closing conditions and is expected to close in the second quarter of 2020.
Duff & Phelps advises clients in the areas of valuation, corporate finance, investigations, disputes, cybersecurity, compliance and regulatory matters, and other governance-related issues.
With the acquisitions of Kroll in 2018 and Prime Clerk in 2019, Duff & Phelps has approximately 3,500 professionals at its offices across the Americas, Europe and Asia. The firm’s longstanding clients include nearly 50 per cent of the companies in the S&P 500, 65 per cent of Fortune 1,000 companies and 70 per cent of top-tier private equity firms, law firms and hedge funds.
“This partnership marks a vote of confidence in the long-term growth of Duff & Phelps. We are grateful to Permira and are thrilled that they will continue to be investors. We are also excited to have the backing of Stone Point Capital, Further Global and a world-class group of investors. Most importantly, I, along with company President Jacob Silverman, wish to thank our 3,500 Duff & Phelps colleagues who have worked tirelessly to make this company a success,” CEO of Duff & Phelps, Noah Gottdiener, said.
“I am delighted to be reunited with Stone Point and the Duff & Phelps management team as we work to continue to build upon the incredible global franchise that Duff & Phelps has become,” Olivier Sarkozy, founder and managing partner of Further Global, added.
“Since the Permira funds’ 2018 investment in Duff & Phelps, the company has meaningfully expanded its capabilities through the strategic acquisitions of Kroll and Prime Clerk. The transformation of Duff & Phelps, over the last two years, is a testament to the strength and talents of Noah, Jake and the entire executive team. From day one, we’ve had a deep and collaborative partnership, and we look forward to the team’s future success,” said Nic Volpi, a partner at Permira.
UBS Investment Bank, Goldman Sachs & Co LLC and Evercore acted as financial advisors to Duff & Phelps.
The investor consortium has received committed financing, which will be led by Goldman Sachs & Co LLC. Weil, Gotshal & Manges LLP acted as legal advisor to the lenders.