Piper Jaffray Sells Advisory Research

Piper Jaffray Companies announced the sale of Advisory Research, Inc. through two separate transactions which will result in the firm exiting its traditional asset management business. It has signed a definitive agreement to sell the midstream energy business of Advisory Research, Inc. to Tortoise Capital Advisors. Piper Jaffray has also entered into a letter of intent to sell the remaining Advisory Research business to a partner group led by Matthew Swaim, managing director and executive committee chairman at Advisory Research. According to a story in MarketsMedia, Piper Jaffray expects to generate net cash proceeds from these two transactions of approximately $60-70 million, exclusive of potential earn-out proceeds. Piper Jaffray acquired Advisory Research in 2010.  Advisory Research currently represents approximately 5% of Piper Jaffray’s adjusted net revenue. The transactions are expected to close in the second half of 2019 and are subject to customary regulatory and closing conditions.