(PRNewswire) Evercore and the principals of its Mexican private equity business, Evercore Mexico Capital Partners, today announced their plan to transfer control of the business to a new entity formed by the principals.
Under the plan:
- The EMCP team, led by Mr. Alfredo Castellanos, has formed a new entity, Glisco Partners Inc. (“Glisco”), which will assume all responsibility for management of the existing EMCP funds, which currently manage $266 million of invested capital. Dr.Pedro Aspe, the Chairman of Evercore Partners Mexico, will continue to serve on the Investment Committee for the EMCP funds.
- As consideration for the transfer of ownership, Evercore will receive a fixed percentage of the management fees earned by Glisco for a period of up to ten years, as well as a portion of the carried interest in the next two successor funds. Evercore will commit to invest capital in those successor funds consistent with the level of carried interest it owns and will retain its carried interest and its capital interests in the existing EMCP funds, which have an aggregate carrying value of $12.4 millionas of March 31, 2016.
- A transition services agreement providing operational support to Glisco will be in place for up to 18 months.
- Completion of the transaction, which is subject to consent by the Limited Partner Advisory Committee of the EMCP funds and regulatory approval in Mexico, is expected to occur before the end of 2016.