MutualFundWire.com: Private Equity Buys into a San Fran Fund Firm

MutualFundWire.com

The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication

Thursday, January 6, 2011

Private Equity Buys into a San Fran Fund Firm

Matthews International Capital Management [see profile] is now partly owned by private equity firm Lovell Minnick Partners. Lovell Minnick bought a minority stake in the San Francisco-headquartered investment adviser to the Matthews Asia line of mutual funds.

Jeff Lovell
Lovell Minnick Partners
Chairman and Managing Director

Lovell Minnick's stake is in the "low 20s," said Jeff Lovell, chairman and managing director of Lovell Minnick, in an interview with The MFWire.com. Lovell declined to say how much his firm paid for the stake, which was purchased primarily from the William Hambrecht Trust. The trust continues to be hold some shares at Matthews.

The transaction closed on Tuesday.

To some industry insiders, news of the deal might not come as a complete surprise. Back in 2008, there was chatter that Matthews was preparing for a possible sale.

Lovell now occupies a seat on Matthews' board of directors.

Mark Headley
Matthews International Capital Management
Chairman

Lovell said he has been acquainted with Matthews founder Paul Matthews for several years, dating back to Matthews' days at G.T. Capital.

"Over the last year, we've had conversations about outside shareholders... We thought there might be some opportunity that we might be a source of liquidity to them and be an investor in Matthews," he said.

Matthews, he said, "is a very specialized and differentiated firm that has a strong investment culture and a great track record."

In a press release, Matthews chairman Mark Headley said: "Lovell Minnick's history as a patient, value-added investor is consistent with our own philosophy as investors and operators."

Lovell Minnick, which has offices in Los Angeles and Philadelphia, has a supermajority stake in ALPS Holdings Inc., which provides back-office and distribution services to mutual funds and other investment vehicles.

Lovell Minnick's stable of portfolio companies also include Atlantic Asset Management, ClariVest Asset Management, Dahlman Rose & Company LLC, Duff & Phelps Corporation, Leerink Swann Holdings, Mercer Advisors Inc., PlanMember Financial Corporation, Seaside National Bank & Trust and Universal Network Exchange.

Company Press Release

Matthews International Capital Management Announces Lovell Minnick Partners as New Equity Holder

SAN FRANCISCO, CA -- January 5, 2011 – Matthews International Capital Management, LLC ("Matthews"), the largest dedicated Asia investment specialist in the United States, announced the addition of Lovell Minnick Partners LLC ("Lovell Minnick") as a minority equity holder. With the endorsement of Matthews, Lovell Minnick private equity partnerships acquired a minority ownership interest previously held by another investor.

"We are pleased to have Lovell Minnick as an equity holder and to add Jeffrey Lovell to the Matthews’ Board of Directors. Lovell Minnick has considerable knowledge and experience working with investment management firms so their addition as an equity holder is a welcome development," stated Mark Headley, Chairman of Matthews. "Lovell Minnick's history as a patient, value-added investor is consistent with our own philosophy as investors and operators."

"The Matthews team has built an exceptional investment management firm with a focused approach, outstanding long-term track record, and differentiated market presence. We fully support the firm’s business approach and continuation of their strategy," said Jeffrey Lovell, Chairman and Managing Director of Lovell Minnick.

About Matthews International Capital Management, LLC

Matthews is an independent, privately owned investment management firm and the largest dedicated Asia investment specialist in the United States. Founded in 1991, Matthews believes in the long-term growth of Asia and has focused its efforts and expertise within the region, investing through a variety of market environments. Its investment offerings provide a broad range of choices for building a global portfolio that includes exposure to one of the world’s fastest-growing regions. With $19 billion in assets under management as of December 31, 2010, Matthews employs a bottom-up, fundamental investment philosophy, with a focus on long-term investment performance. For more information about Matthews, please visit www.matthewsasia.com.

About Lovell Minnick Partners LLC
Lovell Minnick Partners LLC is a private equity firm providing buyout and growth capital to companies in the financial services industry. From offices in the Los Angeles and Philadelphia areas, Lovell Minnick manages private equity partnerships totaling $800 million on behalf of qualified private and institutional investors. Portfolio companies of Lovell Minnick operate in various areas of the global financial services industry, including asset management, financial product distribution, outsourced administration services, securities brokerage and investment banking, financial consulting, and commercial and trust banks. For more information about Lovell Minnick, please visit www.lovellminnick.com.