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Piper Jaffray to Sell Advisory Research, Exit Traditional Asset Management Business.

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MANews-(C)2009-2019

29 May 2019 - US-based investment bank Piper Jaffray Companies (NYSE: PJC) has sold Advisory Research, Inc. through two separate transactions which will result in the firm exiting its traditional asset management business, the company said.

It has signed a definitive agreement to sell the midstream energy business of Advisory Research, Inc. to Tortoise Capital Advisors.

Piper Jaffray has also entered into a letter of intent to sell the remaining Advisory Research business to a partner group led by Matthew Swaim, managing director and executive committee chairman at Advisory Research.

Piper Jaffray expects to generate net cash proceeds from these two transactions of approximately USD 60-70m, exclusive of potential earn-out proceeds.

The remaining Advisory Research teams, based in Chicago, will continue to manage their existing products and client assets.

Piper Jaffray acquired Advisory Research in 2010.

Since that time, the asset management industry has continued to evolve in terms of product availability and distribution capabilities. During this same timeframe, Piper Jaffray significantly scaled its banking platforms to become a market leader in its areas of focus, creating enhanced financial performance and shareholder returns.

These two factors combined led to the decision to pursue a sale. Advisory Research currently represents approximately 5% of Piper Jaffray's...

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