Under terms of the agreements, upon receipt of required consents, Evercore will issue 500,000 restricted share equivalents with a minimum redemption value of $16.5m on December 31, 2014 in exchange for a minority economic interest in Trilantic’s current global fund. Evercore also will commit 2.5%, up to $50m, to Trilantic’s next private equity fund when it is raised, in exchange for a minority economic interest in that fund.
Trilantic currently manages two institutional private equity funds with an aggregate capital commitment of approximately $3.9bn. Evercore’s M&A and restructuring advisory business and its private equity team will help to expand the opportunity set of attractive investments for Trilantic and will support its future fund raising initiatives.
Evercore Capital Partners, led by James Matthews and Neeraj Mital, will continue to independently manage Evercore’s existing private equity funds and will collaborate with Trilantic on new investments as part of the strategic alliance.
Ralph Schlosstein, president and CEO of Evercore, said: “This relationship is a great opportunity to leverage the best skills and attributes of both firms – Evercore’s deal flow, intellectual capital and relationships and Trilantic’s investing expertise and available fund capital. I have known the founders of Trilantic for many years and I am excited about this opportunity to enter into this collaborative venture.”
Charles Ayres, chairman and founding partner of Trilantic, said: “The principals of Trilantic and our investors believe there is a significant benefit to maintaining a strategic relationship with a leading firm like Evercore. We are optimistic that this venture will create substantial value for both Trilantic and Evercore.”
