(Bloomberg) — Private equity firm Advent International and a unit of the Abu Dhabi Investment Authority are buying a minority stake in billionaire Ken Fisher's Fisher Investments worth up to $3 billion.
The transaction, in which the buyers will invest at least $2.5 billion, values Fisher at $12.75 billion, the money management firm said in a statement on Sunday. The deal is part of Ken Fisher's estate planning, according to the company, and will allow Fisher Investments to continue to operate independently.
“While my health is excellent, this transaction with an atypically long holding period for a private equity transaction will ensure FI's long-term independence and private culture should something untoward happen to me,” Fisher, 73, said. in the statement.
Bloomberg News and the Journal reported in January that Advent had held talks to buy Fisher, both citing people with knowledge of the matter. At that time, Fisher released a STATEMENT saying, “Fisher Investments is not being acquired by Advent International, or anyone else – plain and simple.” Advent issued a similar denial of the January reports.
Fisher Investments oversees $275 billion for more than 150,000 clients, including individuals and institutions, the firm said in its statement on Sunday.
Ken Fisher founded the closely held firm in 1979 and last year moved its headquarters from suburban Dallas to Plano, Texas, after the highest court in Washington state said a capital gains tax on wealthy residents was constitutional.
The San Francisco native has an estimated net worth of $5.2 billion, according to the Bloomberg Billionaires Index.
Advent, which has been making private equity bets since 1989, counts financial services among its focus areas and has backed companies including Worldpay and Vantiv, Web page shows The Abu Dhabi Investment Authority, a sovereign wealth fund, was established in 1976 and employs an investment strategy focused on long-term value, according to Sunday's statement.
The Wall Street Journal reported earlier Sunday that Advent was nearing a deal to buy a minority stake in Fisher.