Private equity firms Kelso and The Carlyle Group have agreed to make a substantial minority equity investment in Sandler O’Neill, an investment banking firm specialising in financial services companies.
The firms expect the transaction to close at the end of the year. Terms of the transaction were not disclosed.
The investment will help support the next level of growth and expansion of Sandler O’Neill and the accelerated development of its client services.
Sandler O’Neill’s current management team, led by James J. Dunne III and Jonathan Doyle, will remain in place and continue to make all strategic and management decisions for the firm.
All the existing partners of Sandler O’Neill are participating in the proposed transaction and, in addition to retaining a majority of their partnership interests, have agreed to a multi-year non-compete allowing for greater stability among the partners.
“As we near the completion of one of the strongest years in Sandler O’Neill’s history, we are very pleased and excited to welcome Kelso and Carlyle as investors. It is a tremendous vote of confidence in what we have built at Sandler and will help us as we move our business to the next level,” says Dunne.
Olivier Sarkozy, managing director and head of global financial services for The Carlyle Group, says: “Sandler O’Neill has built an impressive franchise over the last two decades. We look forward to supporting the continued growth of the firm as it seeks to strengthen and expand its position as a trusted advisor to financial institutions. We are pleased to have this unique opportunity to invest in such a powerful platform and are excited to begin this partnership.”
