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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.]]>

New York's Safra Bank Acquires Israeli Bank Hapoalim's Private Banking Business in Miami

New York's Safra Bank Acquires Israeli Bank Hapoalim's Private Banking Business in Miami

“We are determined to play a leading role in the consolidation of the private banking market,” said Jacob J. Safra, vice-chairman of Safra National Bank. “Our capital strength, family ownership and 175 years of experience give us great flexibility to do such transactions.”

“We look forward to welcoming the clients and employees of Bank Hapoalim in Miami to our organization,” said Simoni Morato, CEO of Safra National Bank of New York. Bank Hapoalim’s private banking business in Miami fits perfectly with the strategic vision of the J. Safra Group and Safra National Bank of New York, and we are confident we will add immeasurable value to clients.” The J. Safra Group, with total assets under management of over $194 billion and aggregate stockholders equity of $15.4 billion, is controlled by Jacob’s father, billionaire Joseph Safra, based in Sao Paulo, Brazil. The group consists of privately owned banks under the Safra name, real estate and agribusiness investments and other holdings. The group’s banking interests, which have over 160 locations globally, are Safra National Bank of New York headquartered in New York City; J. Safra Sarasin, headquartered in Basel, Switzerland; and Banco Safra, headquartered in Sao Paulo, Brazil; all independent from one another from a consolidated supervision standpoint. The group’s real estate holdings consist of more than 200 premier commercial, residential, retail and farmland properties worldwide, such as New York City’s 660 Madison Avenue office complex and London’s iconic Gherkin Building. Its investments in other sectors include, among others, agribusiness holdings in Brazil and Chiquita Brands International Inc. There are more than 28,000 employees associated with the J. Safra Group, with deep relationships in markets worldwide. The deal is expected to be completed during the first quarter of 2017, subject to regulatory clearance. Bank Hapoalim, Israel’s largest bank, was established in 1921 by the Israeli trade union federation Histadrut and the Zionist Organisation. The bank was owned by the Histadrut until 1983, when it was nationalized, and was held by the Israeli government until 1996, when it was sold to a group of investors led by the late Ted Arison. It is currently controlled by Arison Holdings through an equity stake of about 20 percent, which is owned by Ted’s daughter Shari Arison. As of the end of 2015 Hapoalim had over $110 billion in assets, with nearly $8.5 billion in equity capital and almost 12,000 employees worldwide. Hapoalim has been chosen as Bank of the Year in Israel for 2015, by The Banker, a publication of the Financial Times Group. Photo: Jacob J. Safra, Vice-Chairman of Safra National Bank. (Bilan)]]>

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.]]>

FAB Partners to Acquire $CIFC for $333M With Qatari Royal Family Backing

FAB Partners to Acquire $CIFC for $333M With Qatari Royal Family Backing

fabulous‘ former senior executives from Deutsche Bank and Goldman Sachs, agreed to acquire New York-based private debt investment manager CIFC LLC (NASDAQ: CIFC) for $333 million in cash, with backing from the Qatari royal family’s Supreme Universal Holdings Ltd. The move comes five weeks after the Qatari royal family’s Paramount Services Holdings and Supreme Universal Holdings, each raised their respective stakes in Deutsche Bank to nearly 5 percent, concurrently followed by the bank’s nomination of Stefan Simon, a partner at the German law firm Flick Gocke Schaumburg, to its supervisory board, heeding the Qatari shareholders’ advice. FAB’s offer price of $11.46 per share represents a premium of more than 60% over CIFC’s closing share price on August 19, 2016, and a premium of nearly 160% over the January 27, 2016 closing share price, the day prior to CIFC’s announcement of its pursuit of strategic alternatives. Founded in 2005 and based in New York, CIFC is a $14 billion private debt manager specializing in U.S. corporate loan strategies. CIFC has over 75 employees, including more than 30 dedicated investment professionals. The firm serves more than 200 institutional investors globally and is one of the largest managers of collateralized loan obligations (CLOs) in North America. FAB is a global alternative investment platform that focuses on originating, structuring and actively managing investments across all asset classes, sectors and geographies. FAB, which stands for Faissola, Ariburnu and Al-Bassam, was founded by the firm’s eponymous team of capital markets and investment management experts Michele Faissola, Dalinc Ariburnu and Nizar Al-Bassam. “We are pleased to have reached this agreement with FAB, which follows a thorough review of strategic and financial alternatives that generated interest from over a dozen suitors,” said CIFC chairman Jeffrey S. Serota. “CIFC is a leading private debt investment platform and one of the largest CLO managers in the industry and we are thrilled that this acquisition marks our first foray into the U.S. credit markets,” said FAB co-founding partner Michele Faissola. “CIFC’s highly experienced investment team, institutional infrastructure and blue-chip client base, make them an ideal partner for us as we look to access the U.S. market for our clients. Our clients are committed to capitalizing on both current and future investment opportunities in the U.S. and we view CIFC as our beachhead into these exciting opportunities.” “The depth and breadth of the team Steve and his partner, Oliver Wriedt, have built was a key consideration in our decision to choose the CIFC platform as our first major investment geared at accessing the U.S. market,” added FAB co-founding partner Nizar Al-Bassam. The deal has been approved by CIFC’s board of directors. Columbus Nova, CIFC’s majority shareholder, has agreed to vote its shares in favor of the transaction. The deal is subject to CIFC’s shareholders’ approval, regulatory approvals and other customary closing conditions, and is expected to close this calendar year. J.P. Morgan Securities LLC is serving as exclusive financial advisor to CIFC and Dechert LLP and Latham & Watkins LLP are serving as legal counsel. Moelis & Company LLC is acting as exclusive financial advisor to FAB, and Weil, Gotshal & Manges LLP and Ernst & Young LLP are serving as legal advisor and accounting & tax advisor, respectively. Before co-founding FAB, and until April 2016, Al-Bassam was Head of Central and Eastern Europe, Middle East, and Africa for Capital Markets & Treasury Solutions, Sales, Investment Banking and Commercial Banking Coverage at Deutsche Bank. He was a member of various governance and management committees at Deutsche Bank, including Global Capital Markets & Treasury Solutions Executive Committee, Global Emerging Markets Management Committee and the European Corporate Finance Management Committee. He also served on the boards of a number of companies, including Abraaj Capital, Deutsche Gulf Finance and Saffar Holdings. Ariburnu previously served as a senior partner and global co-head of fixed income, currency and commodity sales at Goldman Sachs, where he served as member of Goldman Sachs’ European Management Committee, Partnership Committee, and Securities Division Global Executive Committee. Before that, he was Global Head of Emerging Markets Group at Deutsche Bank and a member of the Securities Division Global Executive Committee. Faissola previously served as Head of Deutsche Asset & Wealth Management, one of the four divisions of the bank, managing total client assets of almost $1.3 trillion. He was also a member of the Deutsche Bank Group Executive Committee. In this role he supervised a team of over 6,000 people in 33 countries. He was also chairman of the DWS Asset Management (Frankfurt) and chairman of Deutsche Bank Switzerland. Photo: HH Sheikh Tamim bin Hamad Al Thani, Emir of Qatar. (Courtesy, Georgetown University)]]>

Goldman Sachs $GS Australian Wealth Management Unit Exploring Sale or Spinoff

Goldman Sachs $GS Australian Wealth Management Unit Exploring Sale or Spinoff

Australian Financial Review reported. Goldman Sachs, which oversees about A$9 billion ($6.6 billion) in Australia, is reviewing options including a sale or a management buyout. Its Australian equities team is led by Dion Hershan in Melbourne. The investment bank told its staff in an internal memo that the businesses under review might best grow under new ownership. “In Australia, we believe the next level of growth for the domestic managed product business could be best achieved under new ownership,” Simon Rothery, the firm’s Australia head told staff in an e-mail Wednesday. “This GSAM review is being undertaken independently of the rest of Goldman Sachs in Australia. The firm’s corporate advisory, securities and other activities in Australia will not be affected in any way and will continue to operate as they do today,” Rothery added. 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$15bn in assets under management, through a spin-off and management buyout, together with the unit’s former team. Chisholm’s new firm is called Crestone Wealth Management Ltd. About 80% of UBS former advisers reportedly signed on with Crestone, but the closing of the buyout has been delayed several times and is still pending. “The shake-up at UBS wealth management unit comes at a time when the private wealth industry is becoming more fragmented as the Future of Financial Advice reforms impose heavier regulatory burdens upon large banks,” the Australian said. Photo: Goldman Sachs Australia CEO, Simon Rothery.]]>