Private equity firm HGGC has acquired a majority stake in Equity Methods, a leading valuation and compensation advisory firm based in Scottsdale, Arizona. The deal, which marks a significant milestone for both firms, was guided by three prominent law firms: Kirkland & Ellis LLP, Osborn Maledon PA, and Wilson Sonsini Goodrich & Rosati PC.
HGGC, with more than $8 billion in cumulative capital commitments, has now taken a pivotal role in the future growth of Equity Methods. The acquisition will provide essential resources to accelerate the firm’s expansion, particularly in technology, human capital, and the development of new services.
“Human capital is at the heart of the modern economy, and Equity Methods’ services are essential for firms striving to remain competitive and compliant,” said an HGGC spokesperson in a statement.
Founded in 2000 and backed by Montage Partners since 2012, Equity Methods has seen exponential growth since its spinout from Bank of America Merrill Lynch. Under the ownership of Montage Partners, the firm has more than tenfolded its revenue and grown its employee headcount by over fivefold, with a continued focus on innovation, R&D, and client service.
“It’s been an honor to participate in Equity Methods’ growth story,” said Jordan Tate, co-managing partner of Montage Partners. “Their commitment to client service, R&D, and a culture of fostering talent has been outstanding. We will be cheering them on as they embark on this new phase with HGGC.”
Equity Methods now serves some of the world’s most high-profile companies on complex equity and compensation issues, including 20% of the S&P 500. The firm’s CEO, Takis Makridis, emphasized that the firm will remain focused on a client-first approach while strategically pursuing disciplined growth.
“Our partnership with HGGC will help us continue our trajectory of growth and enable us to offer more services to our clients,” said Makridis.
Kirkland & Ellis LLP played a key role in advising HGGC during this acquisition, with a team led by partners Travis Lee Nelson, Noah D. Boyens, N. Cameron Leishman, Sonali S. Jindal, Caitlin Bouey, and William Dong.
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