Piper Jaffray Cos. agreed to sell investment manager Advisory Research Inc. in two separate transactions the company expects to generate net cash proceeds of roughly $60 million to $70 million, excluding potential earnout proceeds.
Tortoise Capital Advisors LLC agreed to purchase Advisory Research's midstream energy asset management business, and Piper Jaffray intends to sell the remaining businesses to a partner group led by Advisory Research's executive committee chairman, Matthew Swaim.
Advisory Research's midstream energy infrastructure team, including Senior Portfolio Managers Jim Cunnane Jr. and Quinn Kiley, will join Tortoise Capital Advisors and maintain oversight of the company's client relationships and energy infrastructure business.
The transactions are expected to close in the second half.
Faegre Baker Daniels LLP is Piper Jaffray's legal adviser, while Ardea Partners is serving as its exclusive financial adviser on the deal. Morgan Stanley & Co. LLC served as Tortoise Capital Advisors' financial adviser on the deal.