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Chinese Giant HNA Buys 25% Stake in OM Asset Management from Old Mutual for $446M

Chinese Giant HNA Buys 25% Stake in OM Asset Management from Old Mutual for $446M

OMAM agreed to acquire a 60% equity interest in Landmark Partners, a global secondary private equity and real estate firm, for $240 million in cash. HNA Capital US is expected to appoint one director to the OMAM board after purchasing a first tranche of 9.95% of OMAM shares, and a second on the completion of the second tranche of 15% of OMAM shares. In both cases, these directors will replace existing nominees of Old Mutual. HNA Group, controlled by its founder and chairman Chen Feng, is a global Fortune 500 company focused on Aviation, Holdings, Tourism, Capital, Logistics and EcoTech. Since its founding in 1993, HNA Group has evolved from a regional airline based on Hainan Island into a global company with over $90 billion of assets, $30 billion in annual revenues and an international workforce of nearly 200,000 employees, primarily across North America, Europe and Asia. HNA’s tourism business is a fast-growing, vertically-integrated global player with market-leading positions in aviation, hotels and travel services. HNA operates and invests in nearly 2,000 hotels with over 300,000 rooms across major markets, and has 1,250 aircraft carrying over 90 million passengers to 260 cities worldwide. As reported by ExitHub last October, HNA agreed to acquire a 25 percent equity interest in Hilton Worldwide Holdings Inc. (NYSE: HLT), from New York global private equity firm Blackstone (NYSE: BX) for $6.5 billion, reducing Blackstone’s interest in Hilton to approximately 21 percent. Earlier in October 2016, Avolon Holdings Ltd., a subsidiary of Bohai Capital Holding Co. Ltd. (SLE: 415) controlled by HNA Group, agreed to acquire the CIT Commercial Air aircraft leasing business of New York-based CIT Group Inc. (NYSE: CIT), for $10 billion. Around the same time, HNA EcoTech said it agreed to acquire Beijing-based information technology (IT) outsourcing services provider Pactera Technology International Ltd. from New York global private equity firm Blackstone Group (NYSE: BX) and other shareholders. The purchase price was reportedly $675 million. In early August 2016, HNA Group agreed to invest $336 million in San Francisco-based RocketSpace, a leading technology accelerator campus and co-working space for high-growth startup, in a strategic joint venture deal to fuel RocketSpace’s global expansion, including China. A few days later, HNA’s subsidiary Hainan Airlines Co. Ltd. acquired a 24% stake in Brazil’s third largest airline Azul SA for $450 million, becoming its largest single shareholder. In February 2016, HNA agreed to acquire Ingram Micro Inc. (NYSE:IM) for $6 billion, the largest Chinese takeover of a US information technology company. Photo: Chen Feng, Founder & Chairman of HNA Group.]]>

Japan's SoftBank to Acquire Fortress Investment Group $FIG for $3.3B

Japan's SoftBank to Acquire Fortress Investment Group $FIG for $3.3B

In September 2016, SoftBank acquired British semiconductor IP company ARM Holdings plc for $32 billion. The company was founded in 1981 and is headquartered in Tokyo, Japan. “Fortress’s excellent track record speaks for itself, and we look forward to benefitting from its leadership, broad-based expertise and world-class investment platform,” said Masayoshi Son, Chairman and CEO of SoftBank Group Corp. “For SoftBank, this opportunity will immediately help expand our group capabilities, and, alongside our soon-to-be-established SoftBank Vision Fund platform, will accelerate our SoftBank 2.0 transformation strategy of bold, disciplined investment and world class execution to drive sustainable long-term growth.” “SoftBank is an extraordinary company that has thrived under the visionary leadership of Masayoshi Son,” said Fortress Co-Chairmen Pete Briger and Wes Edens. “We are very pleased to announce an agreement setting our business on a great path forward as part of SoftBank, while creating significant value for our shareholders. We join a company with tremendous scale and resources, and a culture completely aligned with our focus on performance, service and innovation. We anticipate substantial benefits for our investors and business as a whole, and we have never been more optimistic about our prospects going forward.” Under the terms of the merger agreement, which was unanimously approved by a Special Committee of Independent Directors of Fortress’s Board of Directors and Fortress’s full Board of Directors, each Fortress Class A shareholder will receive $8.08 per share, which represents a premium of 38.6% to the closing price of Fortress Class A common stock on February 13, 2017, and a premium of 51.2% to Fortress’s 3-month volume-weighted average price, excluding dividends. In addition, each Fortress Class A shareholder may receive up to two regular quarterly dividends prior to the closing, each in an amount not to exceed $0.09 per Class A Share. Fortress plans to maintain its current base dividend of $0.09 per share for the fourth quarter of 2016 and, if closing does not occur prior to the applicable payment date, for the first quarter of 2017. Fortress principals Pete Briger, Wes Edens and Randy Nardone have agreed to continue to lead Fortress, and have committed to invest 50% of their after-tax proceeds from the transaction in Fortress-managed funds and vehicles, underscoring a deep alignment with the interests of Fortress’s limited partner investors, and in equity securities of SoftBank and SoftBank-managed funds and vehicles. In addition, the Fortress principals have agreed to vote shares representing an aggregate of 34.99% of the outstanding Fortress voting shares held by them in favor of the transaction. Fortress’s senior investment professionals will remain in place and will retain their significant participation interests in fund performance. Fortress will operate within SoftBank as an independent business headquartered in New York, and SoftBank is committed to maintaining the leadership, business model, brand, personnel, processes and culture that have supported Fortress’s success to date. SoftBank can bring in partners for a portion of the investment. Nizar Al-Bassam and Dalinc Ariburnu of F.A.B. Partners, who arranged the transaction, will continue to advise SoftBank with respect to Fortress. The deal is subject to approval by Fortress shareholders, certain regulatory approvals and other customary closing conditions, and is expected to close in the second half of 2017. J.P. Morgan Securities LLC acted as financial advisor, Weil, Gotshal & Manges LLP and Kirkland & Ellis LLP provided legal counsel, and KPMG LLP acted as accounting and tax advisor to SoftBank. Morgan Stanley & Co. LLC acted as financial advisor, and Skadden, Arps, Slate, Meagher & Flom LLP provided legal counsel to Fortress. Paul, Weiss, Rifkind, Wharton & Garrison LLP provided legal counsel to the Fortress principals. Evercore acted as financial advisor, and Davis Polk & Wardwell LLP provided legal counsel to the Special Committee of Fortress’s Board of Directors. Photo: Masayoshi Son, Chairman and CEO of SoftBank.]]>

TA Associates Backs Goldman Sachs $GS Australian Asset Management Unit MBO

TA Associates Backs Goldman Sachs $GS Australian Asset Management Unit MBO

started reviewing options including a sale or a management buyout in May, as reported by ExitHub. Since the appointment of Dion Hershan as GSAM’s head of Australia Equities in 2007 and the subsequent build out of the investment team, GSAM Australia has successfully grown to be a leading Australian equities and fixed income fund manager. The firm’s core offering is its fundamental Australian equities product set, consisting primarily of long only concentrated strategies. The firm’s fixed income capabilities include multi-asset and hybrid strategies. The firm serves the Australian institutional and retail markets, and it also distributes Australian investment products overseas, including in Japan. TA Associates is partnering with the new company’s senior management team consisting of Dion Hershan who will be managing director of the new standalone entity and will continue to lead the Australian Equities investment team, focusing on large cap equities; Katie Hudson who will co-lead the Australian Equities team, focusing on the small and mid-cap universe; and Roy Keenan who will be fixed income portfolio manager. “We are very pleased to back the management buyout of this exciting business,” said Edward Sippel, a managing director at TA Associates and co-head of Asia who will join the new company’s board of directors. “We are confident that we have found the right partner in TA Associates,” said Hershan. “TA Associates has offered a compelling opportunity to further grow the Australian focused investment capability and platform for our Australian equities and fixed income clients,” said Sheila Patel, CEO of International Goldman Sachs Asset Management. GSAM will retain its Australian institutional sales and distribution capabilities for its core global products. According to Willis Towers Watson, as of 2015, the Australian pension market was the fifth largest in the world with total assets of approximately A$2 trillion. It is one of the fastest growing pension markets, with a 10 year growth rate of 9.1%, owing in part to the government’s policy of compulsory superannuation contributions. “The Australian fund management industry is a large and growing market,” said Michael Berk, a managing director at TA Associates who also will join the new company’s board of directors. TA Associates, with offices in Boston, Menlo Park, London, Mumbai and Hong Kong, is one of the largest and most experienced global growth private equity firms. The firm has invested in more than 460 companies around the world and has raised $24 billion in capital. TA Associates has been a leading investor in the asset management industry for more than 25 years, having made 18 investments in the sector to date, most recently the June 2016 acquisition of Russell Investments from London Stock Exchange Group and the April 2015 acquisition of NorthStar Financial Services Group. In Australia, TA most recently completed an investment in Nintex Group, a global provider of workflow software solutions, and a management buyout of SpeedCast Ltd (ASX:SDA), a global satellite communications service provider. Since TA’s investment, SpeedCast and TA have teamed up to make six additional acquisitions in Australia and, in 2014, SpeedCast completed an IPO on the Australian Stock Exchange. The move comes after last year’s Swiss bank UBS Group AG’s (NYSE: UBS) decision to withdraw from its Australian wealth-management services after a strategic review. In May 2015, the UBS unit’s former head Mike Chisholm agreed to acquire UBS Wealth Management Australia Ltd with its license and A$14bn in assets under management, through a spin-off and management buyout, together with the unit’s former team. Chisholm’s new firm Crestone Wealth Management Ltd. was launched with a team of 170 staffers including 70 advisers, after the buyout was completed in June this year. Photo: Dion Hershan, Head of GSAM Australia Equities.]]>