WASHINGTON (dpa-AFX) - Fisher Investments (FI) made a significant announcement revealing that Advent International (Advent) and a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) have reached an agreement to invest between $2.5 billion and $3 billion for a minority stake in the Ken Fisher-led investment firm.
This strategic investment places a valuation of $12.75 billion on FI. As part of this landmark deal, Fisher will divest personal holdings in FI to funds managed by Advent and ADIA.
It's worth noting that, with this agreement, FI will welcome its first external investment, as previous ownership of FI was solely confined to family members and employees. Following the completion of the transaction, Ken Fisher is set to uphold the majority of beneficial ownership and voting shares, exceeding a 70% stake.
The involvement of Advent and ADIA extends to their acquisition of common shares without the inclusion of options or non-common stock preferences, while also providing proportional voting rights commensurate with their beneficial ownership. As this arrangement progresses, David Mussafer, Managing Partner at Advent, is expected to join the board of directors at FI.
One crucial assurance, reiterated by the company, is that this transaction will have no impact on clients, employees, or daily operations at Fisher Investments. Ken Fisher is slated to continue in his role as Executive Chairman and Co-Chief Investment Officer, while Damian Ornani will uphold his position as CEO.
The anticipated timelines point to the completion of the deal later this year. The financial advice for this transaction was provided by J.P. Morgan Securities LLC and RBC Capital Markets, with legal advisory services rendered by Paul Hastings.
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