Duff & Phelps
Encyclopedia
Duff & Phelps Corporation a publicly traded financial advisory and investment banking firm, providing services principally in the areas of valuation, transactions, financial restructuring, dispute and taxation. The company operates in three segments: Financial Advisory; which provides valuation advisory, tax services, and legal management consulting; Alternative Asset Advisory, which provides portfolio valuation, operational due dilligence, and complex asset solutions; and Investment Banking
, which provides mergers and acquisitions
advisory services, transaction opinions, and restructuring advisory services.
Duff & Phelps services a number of industry specific clients across the globe. Clients include: financial institutions, professional service firms, media and entertainment companies, aerospace companies, energy companies, real estate companies, utilities companies, pharmaceutical companies, healthcare companies and consumer product companies.
The company, which was founded in 1932, is based in New York, New York and has offices is North America
, Europe
, and Asia
.
. In 1979, Duff & Phelps expanded into investment management
, creating what would become Duff & Phelps Investment Management Co. (DPIMC). The company remained employee-owned, originally as a partnership and later as an Employee Stock Ownership Plan (ESOP).
In 1984, the company was nearly acquired by Security Pacific Corp. in a $35 million transaction. However, the deal was called off in early 1985 Security Pacific Corp. because of restraints put on the deal by the Federal Reserve Board, which would have precluded the company from issuing public credit ratings.
The company was acquired five years later, in 1989, in a $146 million management buyout
. The buyout was backed by Freeman, Spogli & Co., a private equity
firm, which controlled approximately two-thirds of the company, and management and employees owning the remaining third of the company's equity. The transaction was highly leveraged financed 79% with bank borrowings and 15% coupon high-yield bonds. The company was taken public for the first time in 1992 through an initial public offering
of stock on the New York Stock Exchange
.
In November 1995, Duff & Phelps merged with Phoenix Securities Group, a subsidiary of Phoenix Home Life Mutual Insurance Company, and the company was renamed Phoenix Duff & Phelps Corporation. Ultimately, Duff & Phelps Investment Management Co. would be split off from the remainder of the business as a subsidiary of Phoenix Investment Partners, later Virtus Investment Partners . In addition to DPIMC, Virtus owns a group of five other investment management companies. In 2000, the company, which comprised the remaining investment banking and financial advisory businesses, was acquired by Webster Financial Corporation.
In 2004, Lovell Minnick Partners sponsored a management buyout
of the company, the second time the company had undergone a leveraged buyout transaction, acquiring the company from its then owner, Webster Financial Corporation. As part of the transaction, the company was merged with Stone Ridge Partners, a middle-market investment banking firm. In 2005, the company raised equity from Vestar Capital Partners
to support the company's acquisition strategy that included the purchase of Standard & Poor's
Corporate Value Consulting business as well as Valuemetrics, a financial advisory firm specializing in valuation services founded in 1981.
In 2006, it acquired specialty investment bank Chanin Capital Partners, LLC.
In 2007, Duff & Phelps completed its second initial public offering
raising $133 million and listing the company's shares on the New York Stock Exchange
. The IPO provided a partial exit for its two private equity
financial sponsors. Also in 2007, the firm formed a strategic alliance with Tokyo-based Shinsei Bank
. More recently, the firm has continued its acquisition strategy acquiring Dubinsky & Co., a financial consulting company and Kane Reece Associates.
Investment banking
An investment bank is a financial institution that assists individuals, corporations and governments in raising capital by underwriting and/or acting as the client's agent in the issuance of securities...
, which provides mergers and acquisitions
Mergers and acquisitions
Mergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or...
advisory services, transaction opinions, and restructuring advisory services.
Duff & Phelps services a number of industry specific clients across the globe. Clients include: financial institutions, professional service firms, media and entertainment companies, aerospace companies, energy companies, real estate companies, utilities companies, pharmaceutical companies, healthcare companies and consumer product companies.
The company, which was founded in 1932, is based in New York, New York and has offices is North America
North America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...
, Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
, and Asia
Asia
Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.7% of the Earth's total surface area and with approximately 3.879 billion people, it hosts 60% of the world's current human population...
.
1932-1992
Duff & Phelps was founded in 1932 to provide investment research. Since that time, the firm expanded into investment banking and investment management as well as credit ratingCredit rating
A credit rating evaluates the credit worthiness of an issuer of specific types of debt, specifically, debt issued by a business enterprise such as a corporation or a government. It is an evaluation made by a credit rating agency of the debt issuers likelihood of default. Credit ratings are...
. In 1979, Duff & Phelps expanded into investment management
Investment management
Investment management is the professional management of various securities and assets in order to meet specified investment goals for the benefit of the investors...
, creating what would become Duff & Phelps Investment Management Co. (DPIMC). The company remained employee-owned, originally as a partnership and later as an Employee Stock Ownership Plan (ESOP).
In 1984, the company was nearly acquired by Security Pacific Corp. in a $35 million transaction. However, the deal was called off in early 1985 Security Pacific Corp. because of restraints put on the deal by the Federal Reserve Board, which would have precluded the company from issuing public credit ratings.
The company was acquired five years later, in 1989, in a $146 million management buyout
Management buyout
A management buyout is a form of acquisition where a company's existing managers acquire a large part or all of the company.- Overview :Management buyouts are similar in all major legal aspects to any other acquisition of a company...
. The buyout was backed by Freeman, Spogli & Co., a private equity
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
firm, which controlled approximately two-thirds of the company, and management and employees owning the remaining third of the company's equity. The transaction was highly leveraged financed 79% with bank borrowings and 15% coupon high-yield bonds. The company was taken public for the first time in 1992 through an initial public offering
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
of stock on the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
.
Since 1993
By the mid-1990s, Duff & Phelps, which was operating as a publicly traded company, began to focus on its core investment management, financial advisory and investment banking operations. As a result, in October 1994, the Duff & Phelps's credit rating business, Duff & Phelps Credit Rating Co., was spun off to its shareholders and listed on the New York Stock Exchange. In 2000, Duff & Phelps Credit Rating Co. was acquired by Fitch Group, which later eliminated the use of the Duff & Phelps name.In November 1995, Duff & Phelps merged with Phoenix Securities Group, a subsidiary of Phoenix Home Life Mutual Insurance Company, and the company was renamed Phoenix Duff & Phelps Corporation. Ultimately, Duff & Phelps Investment Management Co. would be split off from the remainder of the business as a subsidiary of Phoenix Investment Partners, later Virtus Investment Partners . In addition to DPIMC, Virtus owns a group of five other investment management companies. In 2000, the company, which comprised the remaining investment banking and financial advisory businesses, was acquired by Webster Financial Corporation.
In 2004, Lovell Minnick Partners sponsored a management buyout
Management buyout
A management buyout is a form of acquisition where a company's existing managers acquire a large part or all of the company.- Overview :Management buyouts are similar in all major legal aspects to any other acquisition of a company...
of the company, the second time the company had undergone a leveraged buyout transaction, acquiring the company from its then owner, Webster Financial Corporation. As part of the transaction, the company was merged with Stone Ridge Partners, a middle-market investment banking firm. In 2005, the company raised equity from Vestar Capital Partners
Vestar Capital Partners
Vestar Capital Partners is an American private equity firm focusing on leveraged buyout transactions in the United States, Europe and Asia.The firm, which was founded in 1988 is headquartered in New York City with offices in Boston, Massachusetts, Denver, Colorado in the US as well as Paris, Milan,...
to support the company's acquisition strategy that included the purchase of Standard & Poor's
Standard & Poor's
Standard & Poor's is a United States-based financial services company. It is a division of The McGraw-Hill Companies that publishes financial research and analysis on stocks and bonds. It is well known for its stock-market indices, the US-based S&P 500, the Australian S&P/ASX 200, the Canadian...
Corporate Value Consulting business as well as Valuemetrics, a financial advisory firm specializing in valuation services founded in 1981.
In 2006, it acquired specialty investment bank Chanin Capital Partners, LLC.
In 2007, Duff & Phelps completed its second initial public offering
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
raising $133 million and listing the company's shares on the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
. The IPO provided a partial exit for its two private equity
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
financial sponsors. Also in 2007, the firm formed a strategic alliance with Tokyo-based Shinsei Bank
Shinsei Bank
is a Japanese commercial bank headquartered in Chiyoda, Tokyo.-History:Shinsei Bank is the successor of a trust bank, the Long-Term Credit Bank of Japan, which had a government monopoly on the issuance of many long-term debt securities...
. More recently, the firm has continued its acquisition strategy acquiring Dubinsky & Co., a financial consulting company and Kane Reece Associates.