An investor group led by funds managed by Stone Point Capital and Further Global has signed a deal to acquire financial services firm Duff & Phelps for $4.2bn from Permira funds and others.
Permira funds will continue to keep a significant stake in the financial services company as part of the buying investor consortium. As part of the deal, Duff & Phelps’ management team will retain a meaningful equity stake as well and continue to lead the company.
Duff & Phelps CEO Noah Gottdiener said: “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.”
Headquartered in New York, Duff & Phelps advises clients in valuation, corporate finance, cybersecurity, disputes, investigations, compliance and regulatory matters, and other governance-related issues. The financial services firm employs nearly 3,500 people in its offices located across the world.
In 2018, the company acquired Kroll, a provider of complex investigations, security and cyber solutions. The following year, it acquired a claims and noticing administrator Prime Clerk.
In 2017, Duff & Phelps was acquired by a company backed by Permira funds for $1.75bn from The Carlyle Group, Neuberger Berman, Pictet & Cie, and the University of California’s Office of the Chief Investment Officer of the Regents.
Stone Point Capital was one of the ex-owners of Duff & Phelps
Stone Point Capital previously held a stake in the financial services firm between 2013 and 2015. Likewise, Olivier Sarkozy, who is the founder and managing partner of Further Global, was associated with the financial services provider in the past through an earlier stint with Carlyle.
Stone Point Capital CEO Chuck Davis said: “We are thrilled to have the opportunity to partner with Duff & Phelps again and participate in the next phase of growth for the company.
“The firm maintains a strong brand position and an outstanding entrepreneurial culture that will drive its continued success. We look forward to working closely with Noah, Jake and the rest of the team as we help them realize their strategic vision.”
Subject to customary closing conditions, the deal is likely to be completed in the second quarter of this year.
