Wednesday, May 27, 2015

ICG sells InvestorForce to MSCI for $23M

Price is less than half the Wayne firm's 2000 venture capital funding

ICG sells InvestorForce to MSCI for $23M

ICG Group Inc., the Radnor investment firm once known as Internet Capital Group, says it's sold investment software company Investor Force Holdings Inc., Wayne, to investment index manager MSCI Inc. for $23.5 million. Sale statement here.

That's less than half the $52 million InvestorForce raised from investors including the California state pension plan, Merrill Lynch, Mellon Bank, and Thomas Weisel Partners back in 2000, during the Internet bubble, which briefly boosted Internet Capital stock to $50 billion.

But ICG, InvestorForce's early backer, has hung in long enough (and "written off a lot over the years," says spokeswoman Karen Green) that the owner can "record a gain of approximately $15.4 milllion on the sale of its InvestorForce stake," tax-free, ICG said in the statement announcing the sale.  Longtime CEO Jim Morrissey was a minority owner. More on InvestorForce here.

InvestorForce's staff of more than 100 helps administer $3.5 trillion in more than 3,500 pension and other institutional investment plans, the company says. MSCI was spun off as a separate firm by Morgan Stanley, the investment bank, in 2009.

About this blog

PhillyDeals posts drafts, transcripts and updates of Joseph N. DiStefano's columns and stories about Philly-area business, which he's been writing since 1989.

DiStefano studied economics, history and a little engineering at Penn and taught writing at St. Joseph's. He has written thousands of columns and articles for the Inquirer, Bloomberg and other media, wrote the book Comcasted, and raised six children with his wife, who is a saint.

Reach Joseph N. at JoeD@phillynews.com, distefano251@gmail.com, 215.854.5194 or 302.652.2004.

Reach Joseph N. at JoeD@phillynews.com or 215 854 5194.

Joseph N. DiStefano