According to the announcement, WL Ross & Co. is dedicated to private investments and fund management for institutional investors and family offices worldwide. The company has sponsored alternative investments such as private equity funds, co-investment vehicles and hedge funds in the steel, textile, coal, automotive and financial services industries in the US, UK, France, China, Japan and Korea.
Upon completion of the acquisition, AMVESCAP’s direct private equity business, INVESCO Private Capital, will be combined into WL Ross & Co. and managed by company founder Wilbur Ross, Jr.
“The addition of WL Ross & Co. significantly expands the range of sophisticated investments for AMVESCAP’s global clients,” said AMVESCAP’s President and Chief Executive Officer Martin Flanagan, in the announcement.
The deal is expected to close in the fourth quarter of 2006. The purchase price may reach $375 million, including $100 million paid in cash at closing and five annual earn-out cash payments, each capped at $55 million, which will be based on the size and number of future fund launches.