Permira to sell Duff & Phelps to two PE firms in $4.2bn deal

Further Global and Stone Point Capital to acquire professional services group

Permira is to sell Duff & Phelps, the professional services group it acquired only two years ago, to two private equity firms in a $4.2bn deal.

Buyout groups Further Global — which was founded by Olivier Sarkozy, the half-brother of former French president Nicolas Sarkozy — and Stone Point Capital will acquire the company in a deal expected to close in the next few months, they said in a statement on Wednesday.

The deal is expected to bring in a significant profit for London-based Permira, which bought Duff & Phelps for $1.75bn in 2018. It will keep a minority stake in the business, as will the company’s management.

During its ownership it merged the company with Kroll, the business intelligence and investigations firm and Prime Clerk, the restructuring and bankruptcy administration company.

Private equity interest in professional services firms has been growing in recent years and Permira’s purchase of US-based Duff & Phelps marked a significant push by the buyout industry into the market.
Last year Permira held talks to buy a minority stake in Cogital, the challenger accountancy firm, but they did not result in a deal.

Duff & Phelps was one of the joint administrators of BHS, the department store chain that collapsed in 2016. It was also brought in as administrator for Terence Conran’s upmarket dining group, Prescott and Conran, and for Jacques Vert owner Calvetron Brands, both in 2018.

“There are still tremendous opportunities ahead and we are pleased to support Duff & Phelps’ continued global expansion,” said Daniel Brenhouse, a principal at Permira.

Stone Point and Further Global specialise in financial services. Stone Point’s investments include Sky Harbor Capital Management, a Connecticut-based asset manager.

“I am delighted to be reunited with Stone Point and the Duff & Phelps management team as we work to continue to build upon the incredible global franchise that Duff & Phelps has become,” Mr Sarkozy said in a statement.

Duff & Phelps’ services include merger and acquisitions advice, compliance consulting, valuation advice and cyber risk work. It was founded in 1932 in Chicago as an investment research company.

Source: Financial Times

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