Wednesday, 6 May 2015
Last updated 11 min ago
Jul 28 2006 | 4:38pm ET
Amvescap could hardly have found a bigger name to run its direct private equity business. Buyout giant Wilbur Ross has agreed to sell his six-year-old, $3.5 billion private equity firm, WL Ross & Co., to the U.K. money manager for up to $375 million. As part of the deal, Amvescap's private equity business, Invesco Private Capital, with more than $3 billion in assets under management, will be merged into WL Ross, with Ross heading the new combined entity.
"Wilbur Ross is a recognized leader in financial restructuring," Amvescap President and CEO Martin Flanagan, said. "With his leadership of the company's direct private equity business, Amvescap will be uniquely positioned to deliver alternative investment strategies that provide innovative and enduring investment solutions for our clients."
In a conference call, Ross explained his decision to give up full control of his firm. "It used to be that a few billion dollars was a large private equity fund," he said. "Now it takes $10 billion or $20 billion to get to that level."
Ross added, "I believe this is a pioneering deal in what will likely be quite a number of similar transactions going forward."
The combined WL Ross-Invesco entity will have nearly $7 billion in assets.
London-based Amvescap, which is run out of Atlanta, will pay $100 million for New York-based WL Ross when the deal closes, which is expected to be in the fourth quarter. Ross is then eligible for five annual earn-out payments of up to $55 million each, with a minimum first payment of $30 million.
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…