Berkshire Capital is launching a new investment management arm, the firm announced in a news release.
The new shop is called HF2 Financial Management Inc. It is a new public company and has $178 million in cash on hand.
"HF2 Financial also provides a streamlined
solution for a corporate parent to divest a portion of the equity of an investment management subsidiary, potentially resulting in an increase in regulatory capital, better alignment of equity incentives and
productivity, and faster growth with reduced risk," stated Richard S. Foote, the new firm's president ant CEO.
Read the original news release below.
Company Press Release
Berkshire Capital Launches Permanent Capital Solution HF2
Financial Management Inc.
Any subhead
NEW YORK and DENVER, April 23, 2013 (GLOBE NEWSWIRE) -- Berkshire
Capital Securities LLC, a leading merger and acquisition boutique for
investment management firms and the successful sponsor of Highbury
Financial Inc., in partnership with a premier group of experienced,
investment management industry professionals, is pleased to announce
the launch of HF2 Financial Management Inc. ("HF2") (Nasdaq:HTWO), a
permanent capital solution for the investment management industry.
HF2 is a newly formed public company with $178 million of net cash on
hand, no debt and no legacy operations designed to facilitate a
business combination with a high-quality investment management or other
financial services firm with a minimum of $25 million of EBITDA.
Richard S. Foote, President and Chief Executive Officer of HF2
commented, "HF2 provides a simplified pathway for the public listing of
a privately held investment management firm while achieving liquidity
for its owners. HF2 also provides the potential for significant
retained upside, access to permanent equity capital, a public mark to
facilitate compensation and retention programs and continued autonomy.
HF2 delivers this solution without the same level of uncertainty
regarding price and time and more cost-effectively than a regular-way
IPO."
Mr. Foote continued, "HF2 Financial also provides a streamlined
solution for a corporate parent to divest a portion of the equity of an
investment management subsidiary, potentially resulting in an increase
in regulatory capital, better alignment of equity incentives and
productivity, and faster growth with reduced risk."
Mr. Foote concluded, "Finally, HF2 Financial may facilitate the
aggregation of private funds and separate accounts into a liquid,
pooled, permanent capital vehicle with internal or external management,
a solution we believe is especially attractive to private funds and
separate accounts focused on investments in real estate, infrastructure
and energy assets."
In the weeks ahead the team will call selected targets to arrange
meetings to discuss this solution in detail. Should you wish to make an
inquiry, please contact Drew Murphy, Vice President, Berkshire Capital,
by telephone at 212-207-1824 or by email at dmurphy@berkcap.com.
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