MSCI is set to fully acquire The Burgiss Group, a New Jersey-based provider of data, analytics and technology solutions for investors in private assets.

MSCI made its initial investment in Burgiss in January 2020 and today announced it had entered into a definitive agreement to acquire the remaining 66% for $697m (€640m) in cash.

Since its initial investment, MSCI will have invested an aggregate of $913m to acquire the entirety of Burgiss.

MSCI currently offers private real estate data and analytics covering over one million properties representing more than $45trn in transactions and portfolio assets. It said the acquisition of Burgiss would provide it with comprehensive data and deep expertise in all private assets, enabling investors to evaluate fundamental information, measure and compare performance, understand exposures, manage risk, and conduct robust analytics.

Burgiss has over 35 years of expertise in alternative investments and offers private asset data, analytics, and software applications, including leading research-quality performance data that dates back to 1978.

MSCI said the Burgiss dataset covers over 13,000 private asset funds around the world, representing $15trn in cumulative investments across private equity, private real estate, private debt, infrastructure, and natural resources in 195 countries.

MSCI will also enable investors to compare performance and risk across both private and public asset classes, which will facilitate more efficient asset allocations. The Burgiss Caissa Platform was developed exclusively for institutional investors and was the first platform designed to provide a comprehensive view of the drivers of performance and risk in both public and private investments in total portfolios.

Henry Fernandez, chairman and CEO of MSCI, said: “The acquisition of Burgiss marks a transformational milestone for MSCI and reinforces our commitment to driving innovation and transparency across the global private asset investment landscape.

“By combining Burgiss’ comprehensive private asset data and analytics with MSCI’s expertise in research, analytics, data and technology for investments across public asset classes, we are aiming to redefine total portfolio investing and build solutions that can help investors manage their complex portfolios and make better-informed decisions.”

MSCI said it anticipated funding the purchase consideration from existing liquidity sources and that Burgiss is expected to generate over $90m of revenue in 2023 with an EBITDA margin and operating income margin in the mid-teens.

The transaction is expected to close in the fourth quarter of 2023, subject to regulatory approvals and customary closing conditions.

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