Italian PE unit backs Morrow Sodali's purchase of Australia's GPS

The size of the deal was not disclosed, but it will increase Morrow Sodali’s coverage to more than 700 corporate clients in 37 countries, with an aggregate market capitalization in excess of $5.5 trillion. GPS will become the Australian arm of Morrow Sodali and will continue to be led by Maria Leftakis, who co-founded the company and has served as managing director for over 10 years.

The agreement was signed as part of a trade mission to Australia led by Italy’s secretary for economic development, Simest said in a statement. It added that the deal, as well as expanding Morrow Sodali’s customer base to include Australian institutional investors, opens up the possibility of expansion into Southeast Asia.

Simest is controlled by CDP Group, a joint stock company in which Italy’s Ministry of Economy & Finance is the majority shareholder. It supports the growth of Italian companies through the internationalization of their activities.

Established in 2007, GPS advises boards of directors and executive management teams on issues related to corporate governance, shareholder activism, IPOs and equity, debt and M&A transactions. It has executed more than 500 campaigns for transactions valued at over $600 billion. Morrow Sodali claims to be the largest international firm providing comprehensive governance and shareholder engagement services.

“Working with Australia’s largest listed companies, GPS will strengthen our offering to new and prospective clients around the world. Global investors are becoming more outspoken and demanding. With our combined reach into the principal capital markets, Morrow Sodali is positioned to identify, understand and engage with these investors so that we can advise companies on the accelerating governance and shareholder demands they face,” said Alvise Recchi, CEO of Morrow Sodali, in a statement.

Simest committed EUR5.38 billion ($5.8 billion) in 2015, more than twice the previous year’s figure, most of which went into support for exports. It also made EUR107 million in direct private equity and venture capital investments, taking its total equity investments to EUR662 million as of year-end 2015.

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