HighView Investment Group has launched as an asset management firm that will acquire minority interests in independent alternative asset managers. Its initial capitalization is more than $600 million, including commitments from Evercore Partners, Stone Point Capital and HighView CEO Ralph Schlosstein (co-founder and former president of BlackRock). Read more…
Evercore Partners Inc. (NYSE: EVR) announced today that it will be a founding member of an investor group that includes BlackRock Co-Founder and former President Ralph Schlosstein and Stone Point Capital, among others, in launching HighView Investment Group. HighView’s initial capital commitments exceed $600 million, including $50 million from Mr. Schlosstein and $150 million from Evercore, and will provide the initial funding for what is expected to be a significantly larger company. HighView, led by Mr. Schlosstein, is an asset management firm that will seek to acquire minority interests in independent alternative asset managers with more than $2 billion in assets under management across a broad range of geographies and products, including hedge funds, private equity, distressed debt, real estate, high-performance equity and fund-of-funds.
“As we have often said, our top strategic objective is to better balance Evercore between its advising and investing activities. HighView is a very attractive step in this direction,” said Roger C. Altman, Chairman and Chief Executive Officer of Evercore Partners. “Through this relationship, we will have the opportunity to invest in alternative investment managers through a scaled and diversified platform, and to partner with world-class management talent. Additionally, we expect to benefit from the investment group’s relationship network and the synergistic deal flow between HighView and Evercore.”
“On a personal note, I am also extremely pleased to be investing again with Ralph, whom I have known well for 30 years,” said Mr. Altman. “I worked with Ralph at Lehman Brothers and first partnered with him when Larry Fink and he founded BlackRock in 1988 — an investment that still ranks as one of the best with which I have ever been involved. I know first-hand of Ralph’s ability to create and grow a highly successful investment management firm, and I am looking forward to the future success of HighView.”
Evercore expects to be an important partner in the founding and ongoing management of HighView, providing financial advisory services, infrastructure support and other investment banking services. Mr. Altman will also join HighView’s Board of Directors.
“Evercore is a world-class firm and I welcome its involvement in the founding group of investors backing the launch of HighView,” said Mr. Schlosstein, Chief Executive Officer of HighView. “Roger and I have achieved great success together both at Lehman Brothers and at BlackRock. I value enormously his counsel and welcome the active involvement in HighView’s business of Evercore’s extremely talented professional team. I also am excited about the opportunities that HighView will have in executing its business plan and growing its franchise.”
Evercore’s commitment of $150 million is expected to be drawn down over a period of four to five years. Evercore will fund its commitment from its existing cash resources. Evercore views its capital commitment to HighView as an important part of its continuing effort to strengthen and grow its Investment Management business. Evercore expects its capital contributions to be modestly dilutive to its earnings in 2009 and accretive in subsequent years starting in 2010. Evercore’s investment in HighView will be subject to significant liquidity restrictions.
About Evercore Partners
Evercore Partners is a leading investment banking boutique and investment firm. Evercore’s Advisory business counsels its clients on mergers, acquisitions, divestitures, restructurings and other strategic transactions. Evercore’s Investment Management business manages private equity funds and provides traditional asset management services to sophisticated institutional investors. Evercore serves a diverse set of clients around the world from its offices in New York, San Francisco, London, Mexico City and Monterrey, Mexico. More information about Evercore can be found on the Company’s Web site at www.evercore.com.