The management of growth equity boutique Montag & Caldwell will buy back the firm from parent BNP Paribas Fortis, William A. Vogel, Montag & Caldwell's president and CEO, confirmed in an interview.
Mr. Vogel declined to discuss the terms of the deal, beyond thanking the parent company for structuring a combination of an up-front payment and subsequent earn-outs that didn't require the management team to tap outside private equity money to consummate the deal.
He predicted Montag & Caldwell's emergence as an employee-owned firm — with the deal's expected close in four to six weeks — will work to the advantage of clients and employees alike, helping it maintain “our strong culture” and provide financial incentives to the firm's next layer of management.
With a succession of recent ownership changes as the market crisis sparked financial industry consolidation, the buyout will have Montag asking clients to sign consent forms for the fifth time in the past three years, said Mr. Vogel.
In a news release, Montag & Caldwell said “every officer of the company, including portfolio management, research, marketing and trading, is participating and will be owners of the firm going forward.”
The firm, which has 49 employees, manages about $14 billion in client assets.
Keith Mitchell of Mitchell Hartley Advisers served as financial adviser to Montag.