Stay informed of free updates
Just register at Investment Myft Digest – Delivered directly in your reception box.
Blackstone Group has put in sale First Eagle Investment Management for sale for more than $ 4 billion to try to unload a large participation that the US investment group has had for a decade for a decade.
Black And Corsair Capital, which acquired First Eagle for $ 4 billion in 2015, hired Morgan Stanley to direct the sales process, people said the issue.
The two buyout groups seek to capitalize on a wave of buy -back activities in the asset management sector, while EP buyers and financial service companies accumulate in costs based on costs.
First Eagle generates around $ 500 million in annual profits before interest, taxes, depreciation and damping, people said. The company is expected to bring in an evaluation of more than $ 4 billion, they added.
Blackstone and Corsair financed their acquisition with a lever effect and fired dividends from First Eagle, which means that a sale price of more than $ 4 billion would report a positive but not exceptional yield.
The 161 -year -old company, formerly called Arnhold and S. Bleichroeder Holdings, was founded in Dresden to finance a range of local businesses, including brewers.
When the founding family of First Eagle escaped Nazi Germany and moved to New York in the late 1930s, they built a great presence at Wall Street. The company is best known as an early training field for investor George Soros.
In 2007, the Arnhold family sold a minority participation in the Investment Capital Company and finally renamed the company First Eagle. Blackstone and Corsair Capital took control of the company in a 2015 agreement.
The First Eagle sale in Blackstone and Corsair was part of an early wave in investment Takevers of independent investment managers and groups of investment consulting, which has increased industry assessments.
In the past year, EP companies have concluded major transactions. CVC is refining the British asset manager Hargreaves Lansdown For around 7 billion dollars while in American investment advisers, Fisher Investments and Creative Planning both sold minority equity holdings to investor investors in assessments exceeding $ 12 billion.
First Eagle has increased only modestly under the ownership of Blackstone and Corsair, its assets climbing around 50% since 2015. But it recently hit private credit acquisitions, including specialized purchase investors.
First Eagle said that the company had not commented on rumors or speculation. Blackstone refused to comment. Corsair did not immediately respond to emails asking for comments.
