Abu Dhabi's Adia and Advent to invest up to $3bn in Fisher Investments

The stake sale values the firm founded by billionaire Ken Fisher at $12.75bn

Ken Fisher will remain active in his current role as executive chairman and co-chief investment officer, the company said. Bloomberg

A subsidiary of the Abu Dhabi Investment Authority and global private equity investor Advent International have agreed to invest up to $3 billion for a minority stake in Fisher Investments, the independent money management firm founded by billionaire investor Ken Fisher.

The investment by Advent and Adia of at least $2.5 billion values FI at $12.75 billion, the Texas-based company said in a statement on Sunday.

Mr Fisher will remain active in his current role as executive chairman and co-chief investment officer, and FI chief executive Damian Ornani will continue in his role after the transaction closes, expected later this year.

FI, which manages more than $275 billion for about 150,000 clients globally – including 120,000 US private clients and 185 institutional clients, said the transaction was part of Mr Fisher's long-term estate planning.

“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,” Mr Fisher, 73, said.

“While my health is excellent, this transaction with an atypically long holding period for a private equity transaction will ensure FI's long-term private independence and culture should anything untoward happen to me.”

Adia, which invests on behalf of the Abu Dhabi government, is among the largest sovereign wealth funds in the world, with estimated assets of $993 billion, credit rating agency DBRS Morningstar said last year, citing data from Global SWF.

The fund makes direct and indirect investments across asset classes such as equities, fixed income, infrastructure, private equity and property.

Adia expects continued investment opportunities, despite rising inflation and higher borrowing costs globally, it said in its annual report in October.

Meanwhile, Advent International, which has invested in 420 private equity investments across 43 countries, had $94 billion in assets under management as of December 31.

As part of the latest deal, Mr Fisher will sell personal holdings in FI to Advent-managed funds and Adia, the statement said.

Investors in the Advent vehicles include Lunate Capital managed funds, Mousse Partners, and FI's largest institutional client, South Korea's National Pension Service.

After the transaction closes, Mr Fisher will retain a majority of beneficial ownership and of voting shares exceeding 70 per cent.

“There is no further FI investment transaction contemplated”, the company said, adding that the move “will not impact FI's clients, employees or day-to-day operations”.

Completion of the transaction is subject to certain approvals and other customary closing conditions.

FI, which currently has more than 30,000 private clients across 16 countries, said it also plans to continue expanding its global footprint.

JP Morgan Securities and RBC Capital Markets served as joint financial advisers and Paul Hastings served as legal adviser to FI.