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The Blackstone Group has offered First Eagle Investment Management for more than $ 4 billion for sale to invite a great participation that the US private equity group has had for a decade.
Blackstone And Corsair Capital, which acquired the first Eagle for $ 4 billion in 2015, commissioned Morgan Stanley to lead the sales process, said the people who were informed on this matter.
The two Buyout groups strive to use a wave of takeover activities in the asset management sector, since PE buyers and financial services companies plunge into charges subject to charges.
First Eagle generates before interest, taxes, depreciation and amortization, according to people, around $ 500 million for annual income, taxes, depreciation and amortization. The business is expected to achieve an evaluation of more than $ 4 billion, added.
Blackstone and Corsair financed their acquisition with levers and pulled dividends from First Eagle, which means that a sales price of more than $ 4 billion would achieve a positive but extraordinary return.
The 161-year-old company, once called Arnhold and S. Bleichroeder Holdings, was founded in Dresden to finance a number of local companies, including brewers.
When First Eagle Nazi Germany’s founding family escaped and moved to New York at the end of the 1930s, they built a great presence on Wall Street. The company is best known as an early training area for investor George Soros.
In 2007, the Arnhold family sold a minority stake to the private equity company TA Associates and finally renamed First Eagle. Blackstone and Corsair Capital took control of the company in a 2015 deal.
The sale of First Eagle to Blackstone and Corsair was part of an early increase in Private equity Acceptance of asset managers and independent investment advisory groups that have increased the industry ratings.
PE companies have completed large offers last year. CVC is to delist UK Asset Manager Hargreaves Lansdown For about 7 billion USD during the US investment advisors, Fisher investments and creative planning have sold stock participations to private equity investors for ratings over $ 12 billion.
First Eagle has only grown under Blackstone and Corsair’s property, with his assets have increased by around 50 percent since 2015. Recently it has recently made the acquisitions in private loan, including the purchase of specialist investors.
First Eagle said the company commented on no rumors or speculations. Blackstone rejected a statement. Corsair did not immediately respond to e -mails that requested a comment.
