Fisher Investments (FI) announced that Advent International and a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) have agreed to make a minority investment in Ken Fisher’s namesake firm Fisher Investments. This investment by Advent and ADIA of at least $2.5 billion and up to $3 billion values FI at $12.75 billion.
After the closing of the deal – which is expected to happen later this year – Ken Fisher will remain active in his current role as FI’s Executive Chairman and Co-Chief Investment Officer, and FI management led by CEO Damian Ornani will continue to drive the company. This investment will not impact FI’s clients, employees, or day-to-day operations. The completion of the deal is subject to certain approvals and the satisfaction of other customary closing conditions.
The deal was part of Ken Fisher’s long-term estate planning and enables FI under the leadership of Damian Ornani the ability to continue operating as an independent privately held investment adviser, wealth and asset management firm. FI manages $275+ billion for over 150,000 clients globally, including 120,000 US private clients and 185 of the world’s largest and most well-known institutional clients. And an additional distinguishing feature of FI is its substantial international institutional and high net worth operations—currently serving over 30,000 private clients across 16 countries and offices on four continents, with plans to continue expanding its global footprint.
FI founder and executive chairman Ken Fisher will sell personal holdings in FI to Advent-managed funds and ADIA. And for Advent and ADIA, the deal was an opportunity for a long-term investment in one of the world’s largest investment advisers. The investors in the Advent vehicles include Lunate Capital Limited managed funds, Mousse Partners, and FI’s longtime largest institutional client, South Korea’s National Pension Service (NPS). This is the first outside investment in FI, with previous FI ownership solely among family and employees.
After the deal closes, Ken Fisher will retain a majority of beneficial ownership and of voting shares exceeding 70%. And there is no further FI investment transaction contemplated. The investment in common shares includes neither options nor non-common stock preferences and it includes proportional voting to the investors’ beneficial ownership.
Upon the closing of the deal, David Mussafer, Managing Partner at Advent, will join the board of directors at FI.
J.P. Morgan Securities and RBC Capital Markets served as joint financial advisors and Paul Hastings served as legal advisor to FI in this transaction. And Ropes & Gray served as legal advisor to Advent. Gibson Dunn served as legal advisor to ADIA.
KEY QUOTES:
“This transaction gives us the independent runway with truly exceptional institutional investors who can bring us their wisdom, value our unique culture and goals, and want us to keep doing what we’ve always done, bigger and better, while pioneering never yet done solutions to benefit our clients and employees.”
– Damian Ornani, longtime FI CEO
“This transaction is aimed dually at estate tax and planning purposes while assuring that FI will maintain its traditional culture, growth evolution and devotion to exceptional client service. FI has been my life. While my health is excellent, this transaction with an atypically long holding period for a private equity transaction will ensure FI’s long-term private independence and culture should anything untoward happen to me. And, we will have the support of world class partners who understand us operationally and culturally, and value what we are and will be.”
– Ken Fisher
“We are excited to be backing one of the top brands in financial services that is trusted by its clients for its personalized approach towards wealth management. Ken, Damian, and the rest of the management team have built a tremendous organization over the past 45 years. We’re honored to partner with them in supporting FI’s next phase of growth while upholding the company’s unique culture that is core to its success.”
– David Mussafer, Managing Partner at Advent
