Houlihan Lokey Advises Gravis

Houlihan Lokey is pleased to announce that the owners of Gravis Capital Management Ltd. (Gravis), a U.K.-based asset manager, has agreed to sell 70% of the issued shares of Gravis to ORIX Corp. Europe NV, a wholly owned affiliate of ORIX Corp. (ORIX), through the transfer of common equity. The transaction agreement was signed on 21 October 2020 and is expected to close during the first quarter of 2021, subject to receipt of regulatory approvals and the satisfaction of customary closing conditions.

Based in London, Gravis is a class-leading asset manager with funds in a variety of sectors—including UK infrastructure, renewable energy, and real estate—supported by a strong ESG focus. The company has a diversified investor base, composed largely of institutional investors such as insurance companies and pension funds. As at end-September 2020, total AUM amounted to £3.7 billion from six funds, including closed-ended exchange-traded funds (ETFs), predominantly positioned on the UK market.

Established in 2008 by seven founding partners, Gravis has consistently grown its AUM and investor base by sticking to its core principles of slow and steady growth, with a focus on lower-risk investments with higher risk-adjusted return. Following the transaction, existing management teams and day-to-day operations will remain in place, supported by ORIX’s international presence and expertise.

ORIX is a financial services group that provides innovative products and services to its customers by constantly pursuing new businesses. With nearly $100 billion in operating assets across 37 countries and regions, it has a long successful history in the financial services sector over 56 years. ORIX will complement the acquisition with the expertise and know-how built over the past years following the acquisition of other asset management companies, including Robeco in 2013.

Houlihan Lokey served as the financial advisor to Gravis and assisted in structuring and negotiating the transaction alongside the client, as well as introducing ORIX to the transaction. This deal highlights the breadth of Houlihan Lokey’s Financial Institutions Group (FIG) offering in the alternatives and illiquid assets spaces and reinforces its growing credentials in asset and fund M&A. The FIG team worked alongside senior management to navigate COVID-19-related disruption through the process with ORIX and deliver a superior outcome for the client.