Evercore Partners Inc announced Wednesday that it had reached an agreement for the acquisition of a 50 per cent stake in Sao Paolo based firm, G5 advisors. Evercore reported that it had appended a definitive agreement that will see it acquire the interest in the Brazilian independent investment banking boutique and investment managing firm.
G5 advisors’ partners have been behind some of the biggest transactions undertaken between Brazilian firms for the last twenty years. Nevertheless, under the terms of the agreement, Evercore Partners Inc. will remit $20 million in cash and securities upon deal conclusion, with the potential for earn out payments based on performance through 2013. Evercore Partners Inc. expects the acquisition to be accretive to earnings under a range of growth rates for the business. The deal is expected to close in early October.
Further to that, as at the conclusion of the deal, partners of the G5 advisors will control 50 per cent of the firm, but Evercore retains the opportunity to acquire the remaining 50 per cent shareholding beginning 2014. G5 advisors was set up three years ago and has grown in the short time to become one of the leading independent advisors in Mergers & Acquisitions, Restructurings, Wealth Management and Asset Management.
Currently, the firm has 45 employees and has offices in Rio de Janeiro and Sao Paolo. The firm’s senior partners boast a rare wealth of relevant expertise gathered over decades of working at leading global financial firms globally. Today’s stake acquisition comes after the two firms set up a strategic alliance two years ago. G5 advisors has advised on more than R$ 10 billion of transactions since it was founded and currently manages over R$ 4 billion of assets for institutional and high net worth clients.
Evercore Partners is a leading independent investment banking advisory firm. Evercore's Investment Banking business advises its clients on mergers, acquisitions, divestitures, restructurings, financings, public offerings, private placements and other strategic transactions. The firm also provides institutional investors with high quality research, sales and trading execution that is free of the conflicts created by proprietary activities.
Evercore's investment management business comprises wealth management, institutional asset management and private equity investing. G5 advisors and Evercore Partners acted as their own respective financial advisor for the transaction. This transaction is marks an important part of the firm’s strategy to position Evercore's Advisory business to capitalize on the increased globalization of Mergers and Acquisitions, said Ralph Schlosstein, Evercore's President and Chief Executive Officer.