Houlihan Lokey (HLI) to Acquire Triago

Leading private equity advisory firm Triago signed a definitive agreement on December 20, 2023 to be acquired by Houlihan Lokey, Inc. (NYSE: HLI), the global investment bank. The deal is expected to close in the first half of 2024, following customary regulatory approvals.

Founded in Paris in 1992 as one of the world's first private equity placement agents, and with a 50-person staff operating from offices in New York, San Diego, London, Paris and Dubai, Triago will join with Houlihan Lokey's Private Funds Group ("PFG"), creating a fully integrated global operation and the market-leading private capital advisory platform.

Antoine Drean, Triago founder and Chairman, will become Chairman Emeritus in the expanded Houlihan Lokey Private Funds Group while Triago's Global CEO, Matt Swain, will become Head of Direct Placements and Secondaries in the PFG unit. Following the completion of the transaction, the merged private equity advisory activities will operate under the Houlihan Lokey name.

"Everything that this acquisition achieves for both parties boils down to providing better client service," said Drean. "That's the best way to ensure the long-term expansion of our already fast-growing private equity advisory teams." "Merging with Houlihan Lokey means we can offer every conceivable financial service that a private equity fund manager or an investor might need or could desire," said Swain. "Like us, Houlihan Lokey has an entrepreneurial culture and they operate in our sweet spot in terms of deal size."

Founded in Los Angeles, California in 1972, Houlihan Lokey is a leader in corporate finance, financial restructuring, and valuation services. In 2022, the firm ranked as the #1 investment banking advisor for all global M&A transactions under US$1 billion. Houlihan Lokey also has established itself as a premier advisor to the financial sponsor and alternative assets community, with a dedicated Financial Sponsors coverage team, global private Capital Markets group, Private Funds Group, and valuation and other services dedicated to serving hundreds of financial sponsors, hedge funds, credit managers, and others in the alternative capital space.

"We could not be more excited to bring the Triago team on board, allowing us to deliver a truly comprehensive suite of world-class services to both general and limited Partners. With PFG's newly expanded capabilities alongside our outstanding Capital Markets advisory team, our deep Financial Sponsors coverage group, and other partners across the firm, allied with the client-centric focus of our firm, we are now better-positioned than ever to serve Private Capital clients, and are now among the absolute best advisors in this increasingly important asset class," said Scott Adelson, Co-President and Co-Head of Corporate Finance at Houlihan Lokey.

"As a result of this consolidation, we will be the only fully-integrated advisory platform offering clients Primary, Secondary, Directs and GP Advisory services on a global basis," said Andy Lund, Co-Head of Houlihan Lokey's Private Funds Group. "Of particular note, we're integrating Triago's private equity Directs team, the largest of its kind in the world, in what's widely considered the fastest growing space in private equity." Direct private equity transactions focus on an identified asset and are organized outside of traditional blind-pool funds or co-investment programs. They typically offer greater influence and agency to investors than traditional funds or more passively structured co-investments.

In the past five years, Triago has grown across all its business lines, which include capital raising for funds and directs; private equity secondary transactions (both sales of limited partner-owned stakes and general partner-led deals); and strategic advisory (mostly manager M&A or other forms of capital raising against management company equity).

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