Lipper Is Said to Be Discussing Sale

From Bloomberg News

Lipper Analytical Services Inc., the No. 1 provider of mutual fund research to institutional investors, is in talks to sell the firm, people familiar with the situation said Monday.

Michael Lipper, 63, may reach an agreement to sell the closely held firm as early as this week, they said. Lipper, the firm’s chief executive, was not immediately available for comment.

Lipper is facing increasing competitive pressure from rival firms such as Morningstar Inc. and Micropal, which was recently purchased by McGraw-Hill Cos.

“Another rationale for a Lipper sale would be the expectation that the firm would require more financial resources to compete globally,” said Burton Greenwald, an independent industry consultant in Philadelphia.


Lipper, which was formed in 1973, does not disclose its revenue or profits. The company employs about 250 people and has offices in New York, Denver, London, Hong Kong and Summit, N.J.

One firm that’s interested in gaining a bigger foothold in the mutual fund research business is London-based Reuters Group, analysts said.

Reuters spokesman Robert Crooke declined comment when asked whether his firm is interested in acquiring Lipper.