TA Associates has sold Advisory Research Inc., an asset management ifrm focused on equity strategies, to Piper Jaffray Companies. The deal was valued at approximately $220 million, including $180 million in cash and nearly $40 million worth of Piper Jaffray stock.
Piper Jaffray Companies today announced that it has completed its purchase of Advisory Research, Inc., an asset management firm mainly focused in equity strategies.
“Advisory Research will significantly expand our asset management business and provide sufficient scale for future organic growth,” said Andrew Duff, Piper Jaffray chairman and CEO. “Going forward, we expect our asset management business to contribute approximately 25 percent of our ongoing earnings, providing a stable complement to our more cyclical global capital markets business.”
As consideration for the transaction, the company paid $180.1 million in cash and $39.7 million, or 893,105 shares, of restricted stock. Employee owners received approximately 40 percent of their consideration in restricted stock.
The Piper Jaffray asset management business now has $12.4 billion of assets under management with 94 employees, including 42 investment professionals. Locations will remain in Chicago and St. Louis.
About Piper Jaffray
Piper Jaffray Companies /quotes/comstock/13*!pjc/quotes/nls/pjc (PJC 44.00, -0.08, -0.18%) is a leading, international investment bank and institutional securities firm, serving the needs of corporations, private equity groups, public entities, nonprofit clients and institutional investors. Founded in 1895, Piper Jaffray provides a broad set of products and services, including equity and debt capital markets products; public finance services; financial advisory services; equity and fixed-income institutional brokerage; equity research; fixed income analytics; and asset management services. Piper Jaffray headquarters are located in Minneapolis, Minnesota, with offices across the U.S. and in London and Hong Kong. Piper Jaffray & Co. is the firm’s principal operating subsidiary. (www.piperjaffray.com)