Stone Point-led investors to buy financial consultancy firm Duff & Phelps

An investor consortium led by funds managed by Stone Point Capital and Further Global has struck a $4.2 billion deal to acquire financial consultancy firm Duff & Phelps from Permira funds and others.

As per the terms of the deal, Permira funds will retain a significant minority stake in Duff & Phelps, which is engaged in protecting, restoring and maximizing value for clients. Also, Duff & Phelps’ management team will have a meaningful equity stake and will continue to lead the business.

Noah Gottdiener – CEO of Duff & Phelps 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.”

The New York-based Duff & Phelps is a global advisor for clients in the areas of valuation, corporate finance, disputes, investigations, cybersecurity, compliance and regulatory matters, and other governance-related issues.

The company has a workforce of about 3,500 people across 28 countries.

Stone Point-led investors to buy financial consultancy firm Duff & Phelps. Photo courtesy of Gerd Altmann from Pixabay.

In 2017, a company backed by Permira funds acquired Duff & Phelps for $1.75 billion from The Carlyle Group, Pictet & Cie, Neuberger Berman, and the University of California’s Office of the Chief Investment Officer of the Regents.

Between 2013 and 2015, Stone Point Capital owned a stake in the financial consultancy firm. Similarly, Olivier Sarkozy, the founder and managing partner of Further Global, was associated with Duff & Phelps in the past through an earlier association with The Carlyle Group.

About a couple of years ago, the financial consultancy firm acquired corporate investigations and risk consulting firm Kroll.

Chuck Davis – Stone Point Capital CEO 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.”

The transaction is expected to be closed in the second quarter of 2020, subject to customary closing conditions.