A consortium of private equity (PE) firms comprising the Carlyle Group, Stone Point Capital, Pictet & Cie and Edmond de Rothschild Group have struck a deal to buy financial advisory and investment banking firm Duff & Phelps Corp for about $665.5 million.

Duff and Phelps advises clients on areas such as valuation, transactions, financial restructuring, alternative assets, disputes and taxation. It employs more than 1,000 people and has offices in North America, Europe, and Asia.

The deal gives Duff & Phelps the opportunity to seek higher offers from other potential buyers until Feb. 8. The consortium has offered Duff & Phelps $15.55 a share to stockholders - a premium of 19.2 percent, as per reports.

"Duff & Phelps Board of Directors, acting on advice from the Company's legal and financial advisors, agrees that this transaction is in the best interest of our stockholders, who will receive an immediate and certain cash premium for their shares," Noah Gottdiener, CEO, Duff & Phelps told reporters about the deal. "Importantly, the transaction will be structured to preserve the firm's independence as we serve our clients in the future."

"Regulatory demands, implementation of new accounting policies and requirements for increased corporate disclosure and third party validation provide significant growth opportunities for Duff & Phelps core products and services," Olivier Sarkozy, managing director and head of Carlyle's Global Financial Services group, said. "We will harness Carlyle's and Stone Point's global networks while leveraging Duff & Phelps preeminent brand to foster growth in new geographies. 

"Additionally, we believe the involvement of Pictet and Edmond de Rothschild Group will support the Company's initiatives to enhance its international presence and expand its Limited Partner client base. We are excited to work with Noah and his management team on this opportunity," he said.

"Noah and his colleagues have performed admirably throughout market cycles and have done a superb job executing their business plan to grow the Company," Charles A. Davis, Chief Executive Officer of Stone Point Capital, said. "Today, Duff & Phelps is well-positioned in the marketplace, and we believe that demand for the Company's independence, integrity and professionalism will only increase in the current environment."

In case Duff & Phelps opts out of the agreement with the consortium before March 8 in favor of a higher offer, the firm will have to part with a break-up fee of $6.65 million.

Centerview Partners is advising Duff & Phelps on the deal, while Sandler O'Neill and Partners, Credit Suisse, Barclays, and RBC Capital Markets are advising the consortium.