Greenhill to Focus Entirely on Advisory Business Following Agreement to Separate from Merchant Banking Activities Over Time


NEW YORK, Oct. 28, 2009-- Greenhill & Co., Inc. ("Greenhill") (NYSE: GHL) today
announced a plan to focus entirely on its client advisory business following an agreement to sell
the right to launch successor funds to its three merchant banking funds and thereby transition out
of merchant banking activities over time. The key elements of the sale agreement and related
plans are as follows:

• The sale price will be $25 million, payable principally in Greenhill common stock, which
will be retired. The purchaser will be an entity formed by Robert H. Niehaus, Chairman of
Greenhill Capital Partners. Completion of the transaction is expected to occur in the current

• Existing funds will continue to be managed by Greenhill through Mr. Niehaus and other
current personnel, all of whom are expected to remain Greenhill employees until transitioned
at a later date to the purchasing entity. Following the transition of Mr. Niehaus and other
employees to the new entity, Mr. Niehaus will remain a Senior Advisor to the Firm.
• Greenhill will retain its portfolio of Principal Investments, which had a fair market value of
$178.5 million as of September 30, 2009, and will work along with the relevant fund
investment teams to maximize the value thereof over a number of years. The Firm intends to
use the proceeds of the portfolio, as and when realized, to fund share repurchases and
dividends as well as to reduce its modest outstanding debt. Greenhill will make a modest
commitment (which will not be charged fees or a profit override) to two successor funds
planned by the purchasing entity, and it will own a modest portion of the profit override (or
carried interest) in existing funds as well as the two successor funds.
• Greenhill's fund placement advisory group will remain as part of Greenhill’s ongoing
advisory business