Investment bank Greenhill & Co. Inc. (NYSE: GHL) is buying pension fund adviser Cogent Partners LP for up to about $98 million.
Cogent, headquartered in Dallas, also provides financial advice to endowments and other institutional investors on the secondary market for alternative assets. The firm advises on sales of interests in private equity funds, restructuring, financing and valuation. Cogent's 2014 revenues were about $45.8 million, the company says.
After the deal closes, both firm's activities related to the secondary market for alternative assets will operate under the name Greenhill Cogent. All of Cogent's employees will join Greenhill, including eight managing directors: Chris Bonfield, Bernhard Engelien, Brenlen Jinkens, Todd Miller, Brian Mooney, Bill Murphy, Stephen Sloan and Dominik Woessner.
The purchase price could be up to $97.6 million, but 30 percent of that price depends on future revenue targets. Of the purchase price, $44 million will be paid in cash, and the rest will be paid in Greenhill common stock.
The companies expect the deal to close near the end of the first quarter.
For more on activity in the financial services sector, see Financial Services Sector Will Continue To Consolidate.