Swiss private bank EFG International has agreed to pay $517 million for hedge fund manager Marble Bar Asset Management; the deal value could rise as high as $1.3 billion based on performance goals. In addition, the sellers will get a 20% of the equity in performance-linked payments.
Five managers at London-based Marble Bar, including founders Hilton Nathanson and Gilad Hayeem, and Lehman Brothers, which owns 20% of the firm, will share in the initial payout, with $117 million going to Lehman. The Marble Bar partners have agreed to reinvest their $400 million for up to six years.
EFG will own all of Marble Bar save for 9.99%, which goes to its Greek affiliate, Eurobank EFG.
Marble Bar manages $4.4 billion in assets. EFG said it expects its new unit to turn a profit of between $80 million and $100 million next year.