Evercore Partners agreed to acquire a 45% non-controlling stake in ABS Investment Management for $45 million, confirmed Caroline A. Chartier, an ABS spokeswoman.
Under the terms of the deal announced Monday, ABS Investment Management will continue to independently manage $3.5 billion in specialized equity long/short hedge funds of funds for a largely institutional client base.
Founding Principals Alain De Coster, Laurence Russian and Guilherme Ribeiro do Valle, together with other employees, will own the 55% majority stake in ABS and will continue to manage the firm’s investment vehicles.
The terms of the deal, expected to close in the fourth quarter, require the founders sign long-term employment contracts and invest a majority of their after-tax proceeds from the sale of the minority stake in ABS investment strategies. Ms. Chartier confirmed in an interview.
Evercore Partners is making the investment in ABS with corporate cash, said Carina Davidson, an Evercore spokeswoman. Evercore offers both investment banking advisory services and investment management.