In a bid to boost its research and trading wing, Evercore Partners on Sunday announced that it is mulling over buying Institutional Strategy & Investment (ISI).
With the deal, Evercore is expecting expansion of its capital markets operations by improving the research and trading arms for hedge fund clients.
Moreover, the deal is also an attempt of Evercore to buy the 40 percent of its institutional equities division that it does not possess currently.
Sources say the ultimate price of the deal will depend totally on how the new business, Evercore ISI Institutional Equities, will yield results in future and continues performing in the five years after closing.
ISI founder Ed Hyman will be the Evercore vice chairman and will also head as chairman of the new joint business. Hyman will also hold important portfolio in an executive committee that will look after the unit. ISI president Vinayak Singh and Charles Myers, current head of Evercore’s institutional equities arm, will also accompany Hyman in the executive committee.
Meanwhile, the shares in Evercore sliped more than 8 percent on Friday following reports of the deal.