Duff & Phelps to be bought out by private equity firms for $4.2bn

Global investment advisory firm Duff & Phelps has agreed to be acquired for $4.2 billion by an investor consortium led by private equity firms Stone Point Capital and Further Global.

The deal also includes the equity stake of Permira Funds, which will still hold a significant stake as part of the investor consortium, according to an announcement of the transactions.

The Duff & Phelps management team will also maintain a meaningful equity stake in the firm and continue to lead the company.

Expected to close in the second quarter of this year, the transaction is expected to help the firm grow following the acquisitions of security firm Kroll in 2018 and administrative services firm Prime Clerk last year. Duff & Phelps has longstanding client relationships with 50% of the companies in the S&P 500 and 70% of the top-tier private equity firms, law firms and hedge funds, according to the announcement.

“We are thrilled to have the opportunity to partner with Duff & Phelps again and participate in the next phase of growth for the company,” said Chuck Davis, CEO of financial services focused $25 billion private equity firm Stone Point Capital. “The firm maintains a strong brand position and an outstanding entrepreneurial culture that will drive its continued success.”

“From day one, we’ve had a deep and collaborative partnership,” said Nic Volpi, a partner at Permira, which made a strategic investment in Duff & Phelps in 2018. Permira has roughly $48 billion in total committed capital invested across five sectors including financial services.