Global financial advisor Duff & Phelps is set to be acquired for $4.2 billion by a global investor consortium led by funds managed by Stone Point Capital and Further Global.
The equity sellers include the Permira funds, who has held an investment in Duff & Phelps since 2018 and will continue to hold a ‘significant stake’ in the firm.
As part of the transaction, Duff & Phelps’ management team will maintain a ‘meaningful equity stake’ in the firm and continue to lead the company.
According to Duff and Phelps’ CEO Noah Gottdiener, the partnership marks a vote of confidence in the long-term growth of the firm.
Gottdiener said: “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.”
Nic Volpi, partner at Permira, commented: “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.”
Daniel Brenhouse, a Permira principal, added: “There are still tremendous opportunities ahead and we are pleased to support Duff & Phelps’ continued global expansion as part of the investor group.”
Meanwhile, Stone Point Capital’s CEO, Chuck Davis, cited: “The firm maintains a strong brand position and an outstanding entrepreneurial culture that will drive its continued success.”
Olivier Sarkozy, founder and managing partner of Further Global, 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.”
Duff & Phelps advises clients in areas of valuation, corporate finance, investigations, disputes, cybersecurity, compliance and regulatory matters, as well as other governance-related issues.
With the acquisitions of Kroll in 2018 and Prime Clerk in 2019, the firm has approximately 3,500 professionals located throughout offices in the Americas, Europe and Asia, Duff & Phelps noted.
The investor consortium has received committed financing, which will be led by Goldman Sachs & Co and Weil, Gotshal & Manges acted as legal advisor to the lenders.
