On July 20, 2016, Evercore Partners, Inc. announced that it will transfer Evercore Mexico Capital Partners, its Mexican private equity business, to the newly formed Glisco Partners Inc., in exchange for a revenue share and investment opportunities in the new entity.
Specifically, the principals of Evercore Mexico Capital Partners (“EMCP”) formed Glisco Partners Inc. (“Glisco”), which will manage the existing EMCP funds. In exchange, Evercore Partners, Inc. (“Evercore”) will earn a fixed percentage of Glisco’s management fees for up to ten (10) years.
In addition, Evercore will receive a portion of the carried interest in the next, two (2) successor funds. Evercore has pledged an investment in the successor funds that is commensurate with the level of carried and capital interest it owns and retains in existing EMCP funds. As of March 31, 2016, Evercore’s aggregate carry value in the EMCP funds was $12.4 million.
To facilitate this transaction, a transition services agreement will allow Glisco to receive operational support for eighteen (18) months. The transaction is expected to close before the end of 2016, pending the approval of the Limited Partner Advisory Committee of the EMCP funds and regulatory agencies.
Evercore is a global investment banking advisory firm, established in 1995. It advises investment banking clients on a variety of transactions and issues, in addition to providing institutional investors with equity research, sales and trading execution.
Glisco is a private equity firm that will manage EMCP Funds II and III as well as successor funds. Its focus is on minority investments in high-growth, middle-market Mexican companies.
To read the press release: please click here.