Moody’s Corporation has acquired a majority stake in the companies of Copal Partners, which provides outsourced research and analytical services to institutional customers. The terms of the transaction were not disclosed, though.
One of Copal’s founders is Rishi Khosla, who also advises billionaire Lakshmi N. Mittal with his private equity investments. Its shareholders include global banking majors Deutsche Bank, Citigroup and Bank of America Merrill Lynch. Earlier reports suggest that the three investors have pumped in a total of $22 million in Copal for a combined 25 per cent stake.
While it is not clear if these investors have exited with this transaction, an e-mail query from VCCircle did not immediately elicit a response.
Copal will operate within Moody’s Analytics Professional Services unit and continue to be managed by its existing senior management team. Moody’s funded the purchases from cash on hand.
Moody’s was advised on this transaction by Citi and Slaughter and May. Copal Partners was advised by Centerview Partners and Macquarie Capital. Proskauer Rose served as legal advisors for Copal.
Copal Partners’ companies provide a range of customised, high-value services to the front offices of leading institutional investors, investment banks, private equity firms, hedge funds and corporations. Services provided include due diligence support, industry and company analyses, credit and equity research, valuation analysis, statistics-based analytics services and strategic business development. Copal Partners’ companies currently generate nearly $50 million of annualised revenue. It has offices in Beijing, Dubai, Gurgaon, Hong Kong, London, Mauritius and New York.
“The acquisitions complement the broad array of research, data, software and education services offered by Moody’s Analytics, and Copal’s services to customers in Western Europe and the Americas will contribute to continued expansion of Moody’s Analytics client relationships. Moreover, Copal’s operations in India and China further strengthen Moody’s presence in these important growth markets,” a statement from Moody’s added.
“Copal is highly regarded in the global financial services industry as a leader in high quality research and analytical services for bankers, financial analysts and institutional investors,” said Mark Almeida, president of Moody’s Analytics. “This acquisition extends Moody’s Analytics’ capabilities, enabling us to better help financial institutions manage risk. In addition, Copal’s expertise and resources will allow us to accelerate innovation across Moody’s Analytics.”
Moody’s Corporation, which reported revenue of $2.0 billion in 2010, employs approximately 4,700 people worldwide and maintains a presence in 27 countries.