Kroll Inc.

Kroll

File:Kroll Logo 2021.png
Industry	Corporate investigation Risk consulting Financial advisory
Founded	1932 (1932)
Headquarters	United States
Number of locations	72
Area served	Worldwide
Key people	Noah Gottdiener (executive chairman) Shai Waisman (president) Jacob Silverman (CEO)
Number of employees	6,500
Website	www.kroll.com

Kroll—previously known as Duff & Phelps—is a financial and risk advisory firm established in 1932, with its main office located in New York City. Following Duff & Phelps’ acquisition of Kroll in 2018, the company finalized a global rebranding initiative under the Kroll name in 2021 to consolidate its worldwide operations.

Duff & Phelps

Established in 1932 by William Duff and George Phelps in Chicago, Duff & Phelps began by specializing in investment research before broadening its services to include corporate finance, investment management, and credit rating. In 1979, the firm created Duff & Phelps Investment Management Co. (DPIMC), which became an independent company after a spin-off in 2009.

An attempted $35 million acquisition by Security Pacific Corp. occurred in 1984 but was abandoned in early 1985 due to Federal Reserve regulations restricting public credit rating issuance.

Initial leveraged buyout and public offering

In 1989, Duff & Phelps underwent a $146 million management buyout supported by private equity firm Freeman, Spogli & Co., which held approximately two-thirds of the equity, with the remaining shares owned by management and employees. This heavily leveraged transaction was financed through 79% bank loans and 15% high-yield bonds. The company went public for the first time in 1992 via an initial public offering on the New York Stock Exchange.

By the mid-1990s, Duff & Phelps concentrated on its primary areas: investment management, financial advisory, and corporate finance. As a result, its credit rating division was spun off and separately listed on the NYSE in October 1994. In 2000, Fitch Group acquired this credit rating business and gradually retired the Duff & Phelps brand.

Second leveraged buyout and subsequent IPO

In 2004, Lovell Minnick Partners led a second management buyout, purchasing Duff & Phelps from Webster Financial Corporation and merging it with Stone Ridge Partners, a middle-market investment banking firm. The following year, Vestar Capital Partners invested equity capital to facilitate acquisitions such as Standard & Poor’s Corporate Value Consulting unit and Valuemetrics, a valuation advisory firm founded in 1981. In 2006, Duff & Phelps expanded further by acquiring restructuring specialist Chanin Capital Partners.

The company completed its second IPO in 2007 on the NYSE, raising $133 million and enabling partial liquidity for private equity investors. That same year, it entered into a strategic partnership with Tokyo-based Shinsei Bank and continued expanding through acquisitions including Dubinsky & Co. and Kane Reece Associates. In 2010, it enhanced its capabilities by acquiring Dynamic Credit Partners’ consulting business, bolstering expertise in complex fixed income securities analysis and litigation support.

Later Leveraged Buyouts and Private Ownership Developments

Following a period of less than five years as a publicly traded entity, Duff & Phelps consented to a privatization transaction in December 2012 valued at roughly $665.5 million. This deal involved a group of investors that included affiliates of The Carlyle Group, Stone Point Capital LLC, Pictet & Cie, and Edmond de Rothschild Group.

In December 2015, the University of California’s Office of the Chief Investment Officer made a notable minority capital injection, while Carlyle and Duff & Phelps’ senior executives increased their ownership positions. At this time, Stone Point, Edmond de Rothschild, and Pictet divested their equity holdings.

By November 2017, the global private equity firm Permira acquired Duff & Phelps for $1.75 billion from shareholders including Carlyle, Neuberger Berman, the University of California, and Pictet. CEO Noah Gottdiener alongside President Jacob Silverman continued to hold significant equity interests and maintained their executive leadership roles.

In January 2020, Duff & Phelps agreed to be purchased by an international investor consortium led by Stone Point Capital and Further Global, valuing the company at $4.2 billion. Permira and company management preserved substantial equity stakes following this transaction.

Mergers and Acquisitions Overview

Duff & Phelps pursued growth through targeted acquisitions aimed at broadening its service offerings and extending its global reach. Important acquisitions include:

• 2007: Rash & Associates, specializing in property tax management.
• 2009: Lumin Expert Group, providing financial consulting with expertise in intellectual property disputes.
• 2010: Cole & Partners, establishing a foothold in Canada while enhancing dispute consulting, valuation, and corporate finance advisory services.
• 2011: Growth Capital Partners, a Texas-based firm focused on middle-market investment banking.
• 2014: The Restructuring and Insolvency Division of RSM Farrell Grant Sparks in Ireland, expanding restructuring advisory capabilities with over 200 professionals across Europe, the U.S., and Canada.
• 2015: Kinetic Partners (UK financial regulatory consultancy), initiating the Financial Regulatory and Compliance division; American Appraisal (valuation services), which broadened U.S. fixed asset management and insurance offerings with new offices in Europe and Asia; this acquisition also incorporated the Real Estate Advisory Group (REAG).
• 2016: Corporate Finance Ireland (CFI), strengthening corporate finance expertise in Ireland.
• 2018: Kroll Inc., enhancing corporate investigations and risk consulting services.
• 2019: Prime Clerk, augmenting restructuring service capabilities.

In February 2021, Duff & Phelps consolidated all its subsidiaries under the Kroll brand to unify its global market presence.

To further bolster its cyber risk portfolio, Kroll acquired UK-based cybersecurity firm Redscan in March 2021 and Canadian risk intelligence software provider Resolver in March 2022.

Kroll Brand Evolution

Founded in 1972 by Jules Kroll, Kroll initially operated as a consultancy serving corporate procurement departments. Throughout the 1980s, it expanded into financial investigations focusing on investors, acquisition candidates, and takeover targets.

During the 1990s, Kroll diversified into areas such as forensic accounting, background checks, drug testing services, electronic data recovery—including acquiring Ontrack Data Recovery—and market intelligence. In 1997, it merged with vehicle armoring company O'Gara-Hess & Eisenhardt to create Kroll-O'Gara. The merged entity went public on NASDAQ under the ticker "KROG". By 2001, after selling its armored vehicle division to Armor Holdings, the company rebranded as Kroll Inc., updating its stock symbol to "KROL".

In 2002, Kroll acquired restructuring firm Zolfo Cooper for $153 million, gaining prominence through its involvement in the Enron scandal. Two years later, Marsh & McLennan Companies purchased Kroll for $1.9 billion.

Founder Jules Kroll exited the company in 2008. In 2010, Altegrity, Inc. acquired Kroll for $1.13 billion in cash; however, Altegrity filed for bankruptcy in 2015. Subsequently, Corporate Risk Holdings, LLC became Kroll’s owner.

On October 21, 2016, KLDiscovery—owned by The Carlyle Group—acquired Kroll Ontrack for approximately $410 million and operated it separately. In 2018, Kroll expanded its cybersecurity capabilities further by acquiring Tiversa.

Controversies

In August 2020, the Scottish Lord Advocate conceded that the prosecution of Duff & Phelps administrators Paul Clark and David Whitehouse, following the 2012 Rangers F.C. administration, was "malicious" and lacked "probable cause." The court granted £600,000 in interim costs to the administrators, who pursued £20.8 million in damages from the Crown Office and Police Scotland.

Services

Kroll provides advisory services across risk management, governance, transactions, and valuation.

Private intelligence

Frequently referred to as the “CIA of Wall Street,” Kroll utilizes a network composed of former intelligence agents from organizations such as the CIA, FBI, Mossad, and MI5. Established by Jules Kroll, a prominent entrepreneur and business figure, the firm has been identified by French intelligence as a CIA front for certain intelligence operations, highlighting its strategic significance in global affairs.

Background screening

Kroll’s background screening unit facilitates employment vetting, supplier evaluation, investment due diligence, and institutional admissions processes. This segment includes Kroll Fraud Solutions, which focuses on identity theft prevention and recovery services, strengthening the company’s position in risk mitigation offerings.

Security consulting

Through Kroll Security Group, the firm offers expertise in Security Consulting along with Security Engineering & Design.

In 2020, Kroll was engaged by the Austin Police Department to review its policies related to racism and discrimination, subsequently presenting their findings to the Austin city council in March 2021.

Social media

Kroll’s investigations team conducts background analyses on Instagram influencers by utilizing publicly accessible information to reduce reputational risks arising from problematic behaviors such as offensive social media posts.

Other work

Kroll entered into a contract with the government of Ghana to assist in asset recovery and probe past misconduct; this engagement faced two constitutional challenges in 2020, both of which were withdrawn by April 2021.

In 2018, Kroll was retained by Michigan State University during the Larry Nassar case to investigate more than 170 sexual assault allegations, demonstrating its involvement in prominent institutional inquiries.

The Heroin Trail case

In 1987, attorney Floyd Abrams hired Kroll Associates under CEO Jules Kroll to locate a witness for the First Amendment case related to The Heroin Trail stories published in New York Newsday. Utilizing its network of former law enforcement personnel, Kroll identified Faraculah Arras, who testified regarding participation in a drug transaction linked to Mahmut Karaduman. Abrams later commissioned Kroll in 1998 to examine CNN's Newsstand allegations concerning sarin nerve gas usage in Vietnam.

The John Fredriksen oil theft case

During the late 1980s, Kroll assisted in defending Norwegian shipping tycoon John Fredriksen in a widely publicized trial, illustrating its capability in handling intricate corporate investigations.

Privatization in Brazil

Kroll was instrumental in facilitating privatization deals involving Brazilian government-owned enterprises. The firm worked closely with prominent individuals such as Fernando Henrique Cardoso, businessman Daniel Dantas, André Esteves, among others, playing a key role in driving substantial market reforms.

Security at the World Trade Center and Sears Tower

After the 1993 bombing at the World Trade Center, Kroll overhauled the security measures at the site. In the aftermath of the September 11 attacks, they also oversaw security operations at Chicago’s Sears Tower. Under the leadership of managing director Jerome Hauer, Kroll appointed former FBI agent John P. O'Neill, a specialist on the Al-Qaeda network responsible for the 1993 attack, to direct security efforts at the WTC; O'Neill was killed during the 2001 attacks. This engagement underscores Kroll’s expertise in managing crisis situations and risk for major international infrastructure.

Capital flight from the Soviet Union and Russia

In March 1992, Kroll was commissioned by the Yeltsin administration to investigate substantial funds withdrawn from the Soviet Union prior to the 1991 coup attempt. Amid allegations of "mass privatization by the nomenklatura," Russian authorities halted all capital outflows and froze assets linked to Vnesheconombank. Despite minimal cooperation from Russian officials, Kroll uncovered that over $14 billion (in 1991 dollars) had been transferred from Switzerland to New York, primarily through joint-stock entities such as Rossiya Bank, along with more than $40 billion (adjusted to 2014 dollars) illicitly moved out of Russia by Communist Party affiliates. This massive capital flight severely exacerbated Russia’s economic struggles during Yeltsin’s second term.

2014 Moldovan banking fraud investigation

In January 2015, Moldova’s National Bank enlisted Kroll to conduct an inquiry known as Project Tenor, examining Ilan Shor's Shor Holding and its involvement in the 2014 Moldovan banking fraud scandal connected to the Russian Laundromat money laundering operation.

Harvey Weinstein

In 2015, Kroll was hired by Harvey Weinstein to remove digital evidence related to sexual abuse claims from Ambra Gutierrez’s electronic devices as part of a settlement agreement. Weinstein regularly engaged Kroll to gather compromising information on his critics and accusers, illustrating the company’s role in high-stakes reputation management and risk reduction.