Advent and ADIA to Invest Up to $3 Billion in Fisher Investments

Advent International (Advent), one of the largest and most experienced global private equity investors, and a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA), have agreed to make a minority investment in Ken Fisher’s namesake firm, the US-based Fisher Investments (FI) an independent, fee-only investment adviser.

The investment by Advent and ADIA of at least $2.5 billion and up to $3 billion values FI at $12.75 billion. Following closing, which is expected to occur later this year, Ken Fisher will remain active in his current role as FI’s Executive Chairman and Co-Chief Investment Officer, and FI management led by CEO Damian Ornani will continue to drive the company.

The investment will not impact FI’s clients, employees or day-to-day operations. Completion of the transaction is subject to certain approvals and the satisfaction of other customary closing conditions, FI said.

The transaction was part of Ken Fisher’s long-term estate planning and allows FI under the leadership of Damian Ornani the ability to continue operating as an independent privately held investment adviser, wealth and asset management firm.

FI manages over $275 billion for over 150,000 clients globally, including 120,000 US private clients and 185 of the world’s largest and most well-known institutional clients. An additional distinguishing feature of FI is its substantial international institutional and high net worth operations—currently serving over 30,000 private clients across 16 countries and offices on four continents, with plans to continue expanding its global footprint.

Ideal Opportunity

Ken Fisher will sell personal holdings in FI to Advent-managed funds and ADIA. For Advent and ADIA, the deal was an opportunity for a long-term investment in one of the world’s largest investment advisers.

Investors in the Advent vehicles include Lunate Capital Limited managed funds, Mousse Partners, and FI’s long-time largest institutional client, South Korea’s National Pension Service (NPS).

This is also the first outside investment in FI, with previous FI ownership solely among family and employees. After the transaction closes, Ken Fisher will retain a majority of beneficial ownership and of voting shares exceeding 70%.

There is no further FI investment transaction contemplated. The investment in common shares includes neither options nor non-common stock preferences and includes proportional voting to the investors’ beneficial ownership. Upon closing, David Mussafer, Managing Partner at Advent will join the board of directors at FI.

Damian Ornani said that this transaction gave them the independent runway with truly exceptional institutional investors who can bring their wisdom, value their unique culture and goals, and want them to keep doing what they have always done, bigger and better, while pioneering never yet done solutions to benefit their clients and employees.

Ken Fisher said that this transaction was 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.

David Mussafer said that they were excited to be backing one of the top brands in financial services that is trusted by its clients for its personalised approach towards wealth management.

“Ken, Damian, and the rest of the management team have built a tremendous organization over the past 45 years. We are honoured to partner with them in supporting FI’s next phase of growth while upholding the company’s unique culture that is core to its success,” he added.