PERTH’S prominence on the corporate services radar has been highlighted again with a move by the private equity arm of major UK investment bank Lazard to take a 41 per cent stake in independent oil and gas consultancy RISC.
PERTH’S prominence on the corporate services radar has been highlighted again with a move by the private equity arm of major UK investment bank Lazard to take a 41 per cent stake in independent oil and gas consultancy RISC.
While the equity deal was struck with Lazard Australia’s private equity fund, RISC chairman Richard Court confirmed the deal involved an alliance with Lazard Australia’s investment banking operations, adding to the London-based giant’s capacity in Western Australia.
Lazard already has a small office in Perth focused on the mining sector, while RISC has an existing alliance with KPMG.
The Lazard move adds weight to talk of additional investment banking operations opening in Perth, in the wake of moves by major UK law firms Allen & Overy and Clifford Chance to establish offices in WA as part of their entry into Australia.
Both legal moves were predicated on expectation that much of the transactional activity under way in Australia involved foreign resources players doing deals involving WA.
Other major players thought to be seeking personnel to establish Perth investment banking operations are Goldman Sachs, Deutsche Bank and HSBC.
Mr Court said the move to bring in Lazard as a junior partner would enhance the firm’s service offering while retaining RISC’s independent business model.
RISC works predominantly on the technical side of oil and gas transactions in most major markets. It also has an office in London.
RISC, which stands for Resource Investment Strategy Consultants, has had a number of offers to buy the business in recent years but recently changed from a partnership to a corporatised structure to allow it more flexibility.
RISC’s eight current owners will retain a 59 per cent stake between them. Apart from Mr Court the board consists of CEO Will Pulsford and five other partners including Geoff Barker, Russell Williams, Simon Whitaker, Geoff Salter and Peter Stephenson.
Lazard and RISC's full announcement can be seen below:
Lazard Australia Private Equity Pty Ltd acquires 41% of leading independent oil and gas consultancy RISC Australia Holdings Pty Ltd
Lazard Pty Ltd's Corporate Advisory business and RISC enter into strategic alliance
Lazard Australia Private Equity Pty Ltd and RISC Australia Holdings Pty Ltd (RISC) are pleased to announce that Lazard Australia Private Equity's fund has acquired a 41% interest in RISC, the Asia -Pacific region's leading independent oil and gas consultancy. The remaining 59% of RISC will continue to be owned by RISC management.
Head of Lazard Australia Private Equity Pty Ltd, Lindsay Phillips, said, "We welcome the opportunity to invest in RISC and to facilitate its growth.
"RISC is an attractive investment proposition as it has an impressive management team, clientele and market reputation, as well as solid and growing cash flow."
In addition, Lazard Pty Ltd's Corporate Advisory business and a wholly owned subsidiary of RISC have entered into a strategic alliance agreement to expand their respective Australian oil and gas M&A corporate advisory activities. The strategic alliance allows both companies to leverage their complementary expertise and to capitalise on the substantial growth expected to occur in the Australian oil and gas market in the coming decade.
Lazard Australia CEO, John Wylie, said, "This very powerful arrangement reflects Lazard Australia's commitment to insightful, differentiated and value-adding advice for clients.
RISC has demonstrated its ability to deliver high quality commercial and technical advice to a wide range of clients in the oil and gas industry around the world, and its proven capabilities are complementary to our own."
RISC Chairman, the Hon. Richard Court AC, said, "The strategic alliance represents an outstanding opportunity for RISC.
This alliance will deliver the best of both worlds: it will substantially enhance our service offering to clients, and at the same time, RISC will retain its independence and business model of high quality, robust independent advice for clients."
RISC Chief Executive Officer, Will Pulsford, said, "The benefits of the alliance with Lazard's Corporate Advisory business will be substantial.
Lazard Australia's track record in corporate advice, M&A and capital raising advice is the perfect complement to RISC's advisory business in the oil and gas sector. The common approach of retaining a focused team of recognised industry professionals to provide high quality independent and unconflicted advice to clients provides a solid foundation for the relationship between our companies."
Founder of RISC, Mr John Boardman, is returning to the Board of RISC as Vice Chairman. Mr Boardman brings substantial expertise and client relationships to the business.
Lazard Pty Ltd is Australia's leading independent Corporate Advisory firm, and has advised on many of the largest M&A transactions to have occurred in Australia in the past decade. It is a wholly owned subsidiary of Lazard Ltd (NYSE: LAZ), the global, independent Financial Advisory and Asset Management firm.
RISC is the leading independent commercial and technical advisor in the oil and gas sector providing advice across Australasia, Asia, the Sub-Continent, Africa, the Middle East and Europe. It has many clients from around the world across the spectrum from blue chip to start up and, in Australia, has advised on all of the major current LNG and E&P project developments.
Lazard Australia Private Equity Pty Limited is the manager of a private equity fund known as the CWC Corporate Opportunity Fund No. 1. The Fund was established in December 2005 and has made more than 20 investments in a diverse range of companies and industries. Lazard Australia Private Equity Pty Limited is also a wholly owned subsidiary within the Lazard group.
