Well-known financial industry figure Ken Fisher has completed a previously announced minority investment deal for his namesake firm, Fisher Investments (FI), by Advent International and a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA).
The $3 billion stock acquisition by Advent and ADIA sets a $12.75 billion valuation for FI and is the first ownership stake in FI outside of Fisher’s family circle and employees.
The deal is in line with Ken Fisher’s estate planning and is designed to ensure FI’s “long-term private independence, culture, growth evolution and devotion to exceptional client service,” according to a news release. Fisher, who continues as FI’s Executive Chairman and Co-Chief Investment Officer, maintains a majority of beneficial ownership and more than 70% of voting shares in FI. Damian Ornani continues as chief executive officer of FI, in charge of day-to-day operations and business strategy. David Mussafer, an Advent Managing Partner, has joined the FI board of directors, and Gabriela Weiss, a Principal at Advent, will serve as an observe on the FI board.
At year’s end, FI was managing approximately $300 billion for more than 170,000 clients. That includes more than 130,000 private clients in the U.S. and 200 large institutional clients.
This is the first outside investment in FI, with previous ownership solely among family and employees. No further FI investment transaction are being considered, according to the release.
The investment in common shares includes neither options nor non-common stock preferences and includes proportional voting to the investors’ beneficial ownership in FI.
“While my health is excellent, this transaction is aimed dually at long-term estate tax and planning purposes should anything untoward happen to me,” Ken Fisher said in the release. “Advent and ADIA are truly exceptional partners who value us operationally and culturally, and are committed to preserving what differentiates FI in our industry.”
J.P. Morgan Securities LLC and RBC Capital Markets jointly served as financial advisors for the transaction, and Paul Hastings was legal advisor to FI. Ropes & Gray served as legal advisor to Advent. Gibson Dunn served as legal advisor to ADIA.
