![]() And those banks will have their bar as well. MM banks are simply set up in order to make money on the smaller deals. It would lose money because the output would be the same for a smaller fee. A huge place like MS simply can't afford to expend resource on a smaller fee deal. smaller deals are no easier than large deals, so each bank has to choose its sweet spot. Faegre Baker Daniels is serving as legal advisor and Ardea Partners is serving as the exclusive financial advisor in connection with these transactions.It all has to do with deal size. The earn-out provisions of the Tortoise transaction provide additional potential consideration based on year one results. The transactions are expected to close in the second half of 2019 and are subject to customary regulatory and closing conditions, including client consents. “We intend to reinvest the capital from this sale in our core areas of expertise through both organic investments and corporate development activity in order to generate higher returns for our shareholders.” “These transactions sharpen our focus with respect to core strengths,” says Chad Abraham, chief executive officer of Piper Jaffray. Advisory Research currently represents approximately 5% of Piper Jaffray’s adjusted net revenue. These two factors combined led to the decision to pursue a sale. During this same timeframe, Piper Jaffray significantly scaled its banking platforms to become a market leader in its areas of focus, creating enhanced financial performance and shareholder returns. Since that time, the asset management industry has continued to evolve in terms of product availability and distribution capabilities. Piper Jaffray acquired Advisory Research in 2010. We will continue to invest in premier investment talent, maintain our intense focus on client success and grow our niche investment strategies with like-minded clients.” “We are confident that Matt and his partners will continue to provide excellent stewardship of these client assets by providing exceptional investment results and client service to their client base.”Ĭommenting on the sale, ARI Executive Committee Chairman, Matthew Swaim, says: “With our long-tenured, focused investment teams executing in areas of the market that require unique expertise, we are thrilled to return the ARI business to its legacy partnership roots. “Without significant investment, the business lacks the potential to scale to a level that will represent a meaningful part of Piper Jaffray’s overall business mix,” says Schoneman. ![]() ![]() The remaining Advisory Research teams, based in Chicago, will continue to manage their existing products and client assets. Bringing together two of the longest tenured midstream energy teams will create an even stronger and deeper combined team.” Tortoise Chief Executive Officer, Kevin Birzer, says: “We are thrilled for the experienced Advisory Research energy infrastructure team to join Tortoise. In addition, Tortoise will bring expanded distribution and product capabilities to enhance growth potential.” “The Advisory Research energy infrastructure investment team will continue to bring their deep expertise and strong investment process to existing clients, while leveraging Tortoise’s knowledge in investing across the energy value chain. ![]() “Tortoise has built an excellent investment management platform focused on essential assets,” says Deb Schoneman, president of Piper Jaffray. Piper Jaffray expects to generate net cash proceeds from these two transactions of approximately USD60-70 million, exclusive of potential earn-out proceeds. The midstream energy business of Advisory Research, is being sold to Tortoise Capital Advisors, while the remaining Advisory Research business is being acquired by a partner group led by Matthew Swaim, managing director and executive committee chairman at Advisory Research. Investment bank Piper Jaffray Companies has sold Advisory Research through two separate transactions which will result in the firm exiting its traditional asset management business. ![]() Piper Jaffray Companies sells Advisory Research ![]()
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