News Breaks
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| 17:03 EDT |  | GHL |
| theflyonthewall.com: | Greenhill to focus on advisory business, separate from merchant banking | | Greenhill announced a plan to focus entirely on its client advisory business following an agreement to sell the right to launch successor funds to its three merchant banking funds and thereby transition out of merchant banking activities over time. The sale price will be $25M, payable principally in Greenhill common stock, which will be retired. The purchaser will be an entity formed by Robert H. Niehaus, chairman of Greenhill Capital Partners. Completion of the transaction is expected to occur in the current quarter. Existing funds will continue to be managed by Greenhill through Niehaus and other current personnel, all of whom are expected to remain Greenhill employees until transitioned at a later date to the purchasing entity. Following the transition of Niehaus and other employees to the new entity, Niehaus will remain a senior advisor to the firm. Greenhill will retain its portfolio of principal investments, which had a fair market value of $178.5M as of September 30 and wil work along with the relevant fund investment teams to maximize the value thereof over a number of years. The firm intends to use the proceeds of the portfolio, as and when realized, to fund share repurchases and dividends as well as to reduce its modest outstanding debt. Greenhill will make a modest commitment, which will not be charged fees or a profit override, to two successor funds planned by the purchasing entity, and it will own a modest portion of the profit override, or carried interest, in existing funds as well as the two successor funds. :theflyonthewall.com |
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