MSCI, a provider of decision support tools and services for the global investment community, is to acquire the remaining 66% of The Burgiss Group, a provider of data, analytics, and technology solutions for investors in private assets, for $697m in cash.
Since its initial investment in January 2020, MSCI will have invested an aggregate of $913 million to acquire all of Burgiss.
With over 35 years of expertise in alternative investments, Burgiss offers private asset data, analytics, and software applications, including performance data that dates back to 1978. The Burgiss dataset covers over 13,000 private asset funds around the world, representing $15 trillion in cumulative investments across private equity, private real estate, private debt, infrastructure, and natural resources in 195 countries.
Burgiss serves approximately 1,000 clients – limited partners, general partners, and financial intermediaries – in 40 countries with over 650 employees across the US, Europe, Asia Pacific, and South Africa.
Burgiss’ focus on all private asset classes complements MSCI’s own position in private real estate, which includes Real Capital Analytics, acquired in September 2021. MSCI currently offers private real estate data and analytics covering over one million properties representing more than $45 trillion in transactions and portfolio assets in over 170 countries.
The acquisition will allow investors to compare performance and risk across both private and public asset classes, which MSCI says will facilitate more efficient asset allocations.
MSCI anticipates funding the purchase consideration from existing liquidity sources. Burgiss is expected to generate over $90 million of revenue in 2023 with an EBITDA margin and operating income margin in the mid-teens. The transaction is expected to close in the fourth quarter of 2023, subject to regulatory approvals and customary closing conditions. Burgiss’ financial results will be presented as part of MSCI’s All Other – Private Assets reportable segment.