MutualFundWire.com: A New York Asset Manager Files for an IPO
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Friday, July 8, 2011

A New York Asset Manager Files for an IPO


Another mutual fund firm wants to go public. A week ago Manning & Napier [see filing] filed its initial S-1 with the SEC, with no specific target date, number of shares or pricing for its initial public offering [see filing]. Bank of America Merrill Lynch is listed as the underwriter.

Morningstar, Pensions & Investments, Reuters, the Rochester Business Journal and the Rochester Democrat and Chronicle all covered the news.

So why is Manning & Napier going public? Morningstar speculates that "estate-planning purposes could be a factor," as 74-year-old founder and chairman Bill Manning is the Rochester, New York-based firm's largest shareholder. Yet Morningstar isn't worried, for it offered praise of Manning's "investor-friendly compensation plan."

Founded in 1970, the firm boasted about $43 billion in assets under management as of March 31, 2011, including about $17 billion in mutual funds, including 414 employees (48 of whom are shareholders). Last year it took in $255.5 million in revenue, almost 0.6 percent of AUM, and netted $53.1 million in income. Its adjusted EBITDA was $116.4 million. Patrick Cunningham and Jeff Coons took over last year as CEO and president, respectively.

The firm's profile has risen substantially within the last several years, thanks at least in part to the success of its Manning & Napier Pro Blend Maximum Term Series, an aggressive asset allocation fund that had beaten the S&P 500 11 years in a row as of early 2010.

Manning isn't the only fund firm currently preparing to IPO. In April Milwaukee-based Artisan Partners filed its S-1. And last month Los Angeles-based Oaktree Capital Management also filed to go public.

Company Press Release

FAIRPORT, N.Y.--Manning & Napier, Inc. (the “Company”) announced today that it has filed a registration statement on Form S-1 with the Securities and Exchange Commission for a proposed initial public offering of its Class A common stock. The number of shares to be offered and the price range for the offering have not yet been determined.

BofA Merrill Lynch is acting as the sole bookrunning manager for the proposed offering. The Company intends to use the net proceeds from the sale of its Class A common stock for general corporate purposes and strategic growth opportunities, including potential acquisitions.

A registration statement relating to the Company’s Class A common stock has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective.

A copy of the preliminary prospectus, when available, may be obtained from the offices of BofA Merrill Lynch, 4 World Financial Center, New York, NY 10080 (Attn: Prospectus Department; email dg.prospectus_requests@baml.com).

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.


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