Old Mutual’s US subsidiary OM Asset Management (OMAM) has agreed to acquire a 60% equity stake in private equity, real estate and real asset investment firm Landmark Partners for about $240m.
Established in 1989, Landmark Partners specialises in secondary market transactions of private equity, real estate and real assets investments. The firm is led by its managing partners Francisco Borges and Timothy Haviland, and has about $15.5bn of committed capital as of 31 March 2016.
OM Asset Management intends to fund the transaction using available capacity on its existing revolving credit facility or alternative sources of debt financing.
The deal, slated to be completed in the third quarter of 2016, also includes the potential for an additional payment based on the growth of the business through 2018.
OMAM president and CEO Peter Bain said: "Landmark is precisely the kind of industry leader with whom we seek to partner. 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."
Separately, OMAM also revealed that it has negotiated an acceleration and subsequent termination of the Deferred Tax Asset Deed and Seed Capital Management Agreement with Old Mutual, to hasten its separation from the parent company.
Last month, Old Mutual confirmed that it received expression of interest from multiple third parties for the acquisition of its controlling stake in OM Asset Management.