Fisher Investments is selling a minority stake to private-equity firm Advent International and Abu Dhabi’s sovereign wealth fund.
Advent International and a wholly owned subsidiary of the Abu Dhabi Investment Authority have agreed to invest between $2.5 billion and $3 billion in Fisher Investments in a deal that values the wealth management firm at $12.75 billion. Fisher says it is the first time it has sold a stake to outside investors.
Fisher Investments unveiled the transaction on Sunday, saying it expected it to close later this year. The firm didn’t disclose deal terms. Founder Ken Fisher will continue to own at least 70% of voting shares in his namesake firm, according to a news release. He said Fisher Investments “has been my life” and the deal will ensure the firm’s long-term independence.
“This transaction is aimed dually at estate-tax and planning purposes while assuring that FI will maintain its traditional culture, growth evolution, and devotion to exceptional client service,” Fisher said in the release.
Fisher, who founded the firm in 1979, is well-known for his frequent television appearances and advertising. Fisher Investments manages more than $275 billion for retail investors and institutional clients in the U.S. and other countries. It also has a 401(k) advisory business. Last year, the company moved its headquarters from Camas, Wash., to Plano, Texas in response to a new capital-gains tax on wealthy residents in Washington.
Advertisement – Scroll to Continue
Earlier this year, The Wall Street Journal reported that Fisher Investments was in sales talks with Advent. At the time, Fisher Investments said it was a “false story” and that the company was not being bought by Advent or any other firm.
As part of its Sunday announcement, Fisher Investments said Advent Managing Partner David Mussafer will join its board of directors upon closing of its deal with Advent. “We are excited to be backing one of the top brands in financial services that is trusted by its clients for its personalized approach towards wealth management,” Mussafer said.
Advent was founded in 1984 and had $94 billion in assets under management as of Dec. 31.
Advertisement – Scroll to Continue
Write to Andrew Welsch at andrew.welsch@barrons.com
