Wrap Text
OM Asset Management Acquires Majority Interest in Landmark Partners
Old Mutual plc
ISIN CODE: GB00B77J0862
JSE SHARE CODE: OML
NSX SHARE CODE: OLM
ISSUER CODE: OLOMOL
Ref 370/16
14 June 2016
OM ASSET MANAGEMENT ACQUIRES MAJORITY INTEREST IN LANDMARK
PARTNERS
OM Asset Management plc (“OMAM”), a majority-owned subsidiary of Old Mutual plc (“Old Mutual”),
today announced that it will acquire a 60% equity interest in Landmark Partners (“Landmark”), a leading
global secondary private equity, real estate and real asset investment firm.
Separately, in order to advance the on-going separation of OMAM and Old Mutual plc, OMAM has
negotiated an acceleration and subsequent termination of the Deferred Tax Asset Deed and Seed Capital
Management Agreement with Old Mutual, the result of which is that OMAM’s on-going liabilities to Old
Mutual under both agreements shall be satisfied earlier than expected.
Bruce Hemphill, Group Chief Executive, said: “We welcome OMAM's delivery on its stated intent of
acquiring value-enhancing and additive asset management capabilities in key growth classes. The
amended arrangements for the deferred tax and seed assets are important steps in our relationship with
OMAM. Old Mutual’s strategy is to support the growth of its four strong underlying businesses at the
same time as progressing with the Managed Separation.”
The following is the full OMAM announcement, which is also available on the OMAM website –
http://ir.omam.com/investor-relations/news/
“OMAM to Acquire Majority Interest in Landmark Partners
Industry Leader in Global Secondary Private Equity, Real Estate and Real Asset
Investments Will Broaden and Diversify OMAM’s Portfolio
London – June 14, 2016 – OM Asset Management plc (NYSE: OMAM) today announced that it signed a
definitive agreement to acquire a 60% equity interest in Landmark Partners, a leading, global secondary
private equity, real estate and real asset investment firm. Under the terms of the purchase agreement,
OMAM will pay approximately US$240 million in cash at closing with the potential for an additional
payment based on the growth of the business through 2018. The overall investment is expected to result
in a purchase multiple of 8-10x Economic Net Income (ENI)** generated by the Landmark transaction,
prior to financing costs. OMAM intends to fund the closing payment using available capacity on its
existing revolving credit facility or may seek alternative sources of debt financing depending on market
conditions. OMAM expects the transaction to be up to 12% accretive to 2017 ENI per share. The
transaction is expected to close in the third quarter of 2016.
“Landmark Partners has built a dominant position in the secondary private equity, real estate and real
asset space, having delivered close to three decades of excellent results for their clients,” said James J.
Ritchie, OMAM’s Chairman. “Landmark fits comprehensively into our stated acquisition strategy,
providing a leading platform in an increasingly important asset class, leveraging the strength of our global
distribution group, expanding our range of active strategies for investors, and further diversifying our
earnings base by broadening our participation in alternative investment strategies.”
“Landmark is precisely the kind of industry leader with whom we seek to partner,” said Peter L. Bain,
OMAM’s President and Chief Executive Officer. “The depth and breadth of their management team are
exemplary and we look forward to collaborating with them to grow their existing product set and further
diversify their business into emerging secondary asset classes. Our global distribution team is excited
about bringing Landmark into certain domestic channels as well as new markets outside the U.S.
Further, Landmark enhances the quality of our earnings through the stability of its committed capital-
based revenue stream, and generates significant accretion to our ENI per share. In sum, we are
delighted to partner with the team and look forward to working together to enhance the growth of their
business.”
Landmark has a strong track record of successful innovation in secondary private investments. The firm
expanded from private equity secondary investments to include real estate in 1996 and real assets in
2015. Landmark is distinguished by its long track record, proprietary transaction sourcing capabilities,
and the competitive results it has generated for investors. Landmark has completed over 500
transactions with committed capital of US$15.5 billion since its founding in 1989, and has acquired
interests in over 1,900 partnerships, managed by over 700 general partners. The firm is led by its
Managing Partners, Francisco L. Borges and Timothy L. Haviland, with a senior team averaging 17 years
of experience with Landmark. The firm’s 89-member team operates through locations in Boston, London,
New York, and Simsbury, Connecticut. Landmark’s global client base includes institutional investors in
the United States, Canada, the United Kingdom, continental Europe, the Middle East, Asia and South
America.
“We are pleased to partner with OMAM,” said Francisco L. Borges, Managing Partner of Landmark.
“OMAM’s partnership orientation combined with our management team’s retention of substantial equity in
perpetuity, and ability to offer both growth capital and a strong, broad-based global distribution network
were particularly attractive to us. We look forward to working with Peter and the team to continue to grow
our business.”
Separately, in order to advance the ongoing separation of OMAM and Old Mutual plc, OMAM has
negotiated an acceleration and subsequent termination of the Deferred Tax Asset Deed and Seed Capital
Management Agreement with Old Mutual, the result of which is that OMAM’s ongoing liabilities to Old
Mutual under both agreements shall be satisfied earlier than expected.
OMAM will host a conference call to discuss the transaction at 9:00 a.m. Eastern Time today.
Participants may dial (877) 201-0168 (domestic) or (647) 788-4901 (international) and use the
Conference ID 30514227. A link to the live audio webcast will be available at http://ir.omam.com.
In addition, a copy of the presentation slides to be presented on the conference call are available
at http://ir.omam.com.
Forward Looking Statements
This press release includes forward-looking statements, as that term is used in the Private Securities Litigation
Reform Act of 1995, including information relating to anticipated growth in revenues, margins or earnings, anticipated
changes in OMAM’s business, anticipated future performance of OMAM’s business, anticipated future investment
performance of OMAM’s Affiliates, expected future net cash flows, anticipated expense levels, changes in expense,
the expected effects of acquisitions and expectations regarding market conditions. The words or phrases ‘‘will likely
result,’’ ‘‘are expected to,’’ ‘‘will continue,’’ ‘‘is anticipated,’’ ‘‘can be,’’ ‘‘may be,’’ ‘‘aim to,’’ ‘‘may affect,’’ ‘‘may
depend,’’ ‘‘intends,’’ ‘‘expects,’’ ‘‘believes,’’ ‘‘estimate,’’ ‘‘project,’’ and other similar expressions are intended to
identify such forward-looking statements. Such statements are subject to various known and unknown risks and
uncertainties and readers should be cautioned that any forward-looking information provided by or on behalf of
OMAM is not a guarantee of future performance. Actual results may differ materially from those in forward-looking
information as a result of various factors, some of which are beyond OMAM’s control, including but not limited to
those discussed above and elsewhere in this press release and in OMAM’s most recent Annual Report on Form 10-
K, filed with the Securities and Exchange Commission on March 15, 2016. Due to such risks and uncertainties and
other factors, OMAM cautions each person receiving such forward-looking information not to place undue reliance on
such statements. Further, such forward-looking statements speak only as of the date of this press release and
OMAM undertakes no obligations to update any forward looking statement to reflect events or circumstances after
the date of this press release or to reflect the occurrence of unanticipated events.
Distribution activities conducted by OMAM outside of the United States are centralized through OMAM International
Limited ("OMAM International"), an indirect wholly owned subsidiary of OM Asset Management plc. OMAM
International is authorized and regulated by the United Kingdom's Financial Conduct Authority with FCA register
number 515302.
** This press release references a non-GAAP performance measure referred to as economic net income (“ENI”).
OMAM uses ENI to represent its view of the underlying economic earnings of the business. ENI is used to make
resource allocation decisions, determine appropriate levels of investment or dividend payout, manage balance sheet
leverage, determine Affiliate variable compensation and equity distributions, and incentivize management. OMAM’s
ENI adjustments to U.S. GAAP include both reclassifications of U.S. GAAP revenue and expense items, as well as
adjustments to U.S. GAAP results, primarily to exclude non-cash, non-economic expenses, or to reflect cash benefits
not recognized under U.S. GAAP.
For a further discussion of how OMAM uses ENI and why ENI is useful to investors, along with various U.S. GAAP to
ENI reconciliations, refer to OMAM’s Quarterly Report on Form 10-Q filed on May 10, 2016 and Annual Report on
Form 10-K filed on March 15, 2016.”
Enquiries
External communications
Patrick Bowes UK +44 20 7002 7440
Investor relations
Dominic Lagan UK +44 20 7002 7190
Sizwe Ndlovu SA +27 11 217 1163
Media
William Baldwin-Charles +44 20 7002 7133
+44 7834 524833
Notes to Editors
Old Mutual provides investment, savings, insurance and banking services to 18.9 million customers in
Africa, the Americas, Asia and Europe. Originating in South Africa in 1845, Old Mutual has been listed on
the London and Johannesburg Stock Exchanges, among others, since 1999.
In the year ended 31 December 2015, the Group reported adjusted operating profit before tax of £1.7
billion and had £304 billion of funds under management from core operations (excluding Rogge).
For further information on Old Mutual plc, please visit the corporate website at www.oldmutual.com
Sponsor:
Merrill Lynch South Africa (Pty) Ltd
Joint Sponsor:
Nedbank Capital
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