KeyCorp To Sell Victory Capital Management And Affiliate For $246 Million

  |   For  |  0 Comentarios

KeyCorp announced today that it has agreed to sell the company’s investment management subsidiary Victory Capital Management and its broker dealer affiliate Victory Capital Advisers to a private equity fund sponsored by Crestview Partners for $246 million in cash and debt, subject to adjustment at closing.  Key intends to seek regulatory approval to use the gain from the sale to repurchase shares of its common stock.  

“For Key, the divestiture is consistent with our strategic focus on businesses that leverage the competitive advantages of our core relationship banking model,” said Chairman and CEO Beth E. Mooney .  “In addition, this transaction partners Victory with a widely recognized acquirer, allowing Victory to operate as a pure play investment management business, with management owning an equity position.”

The sale price consists of $201 million of cash at closing and a seller note. The initial face amount of the note will be $45 million, with its final value determined at the end of 2013.  KeyCorp estimates the after-tax gain on the closing of the transaction in the range of $145 to $155 million, subject to final valuation of the note. The business to be sold represented $112 million in revenue and $88 million in expense of KeyCorp’s financial results in 2012.

Victory Capital Management has approximately $22 billion of assets under management and offers a wide range of investment strategies and vehicles for institutional and individual clients.  Victory Capital Advisors, a registered broker dealer, provides mutual fund distribution services.

Crestview Partners is a value-oriented private equity firm based in New York City, with approximately $4 billion of capital under management.

The sale is expected to close during the third quarter of 2013.  It was approved by the Victory Mutual Fund Board of Directors, and is subject to customary closing conditions and consents of the Victory Mutual Fund shareholders and certain investment advisory clients.

 

Morgan Stanley & Co. LLC acted as exclusive financial advisor and Sullivan & Cromwell LLP provided legal advice to KeyCorp.

More than 140 films representing 32 countries at the 2013 Cartagena International Film Festival

  |   For  |  0 Comentarios

With more than 140 films representing 32 countries, the program for the 2013 Cartagena International Film Festival (FICCI) has been unveiled. There will be 15 films competing in the Official Fiction Competition, 12 in the Official Documentary Competition, 14 premieres in the 100% Colombian section ─nine of which will be making their world premieres─, 18 short films, 15 films in the Gems section, another 15 in the Cine bajo las estrellas section, 2 films for the entire family, and at least 5 in our Gala section, plus retrospectives of Paul Schrader, Raoul Peck and Vittorio de Sica. This is just a taste of what audiences can expect to see at the 53rd edition of FICCI, which will take place on February 21–27

This year, the number of screenings will be increased to 290 ─47 screenings per day in theaters, plus three outdoor screenings every day in Plaza de Banderas and Plaza de la Proclamación─, while five digital theaters will be available in the Historic Center and another five in Caribe Plaza.

According to FICCI Director Monika Wagenberg The decision to open up our doors free of charge in 2012 was most definitely the right one. However, this created a problem every festival director dreams of encountering: the theaters were overflowing and outside, lines of disappointed film lovers who had traveled from other parts of the country stood shoulder-to-shoulder with locals, many of whom had never had the chance to see the type of risqué and often intellectually challenging films that set the tone of our program. This year, the festival will be free again, but we will be making a few changes to address this happy state of affairs, including extra screenings and new digital theaters. These changes have enabled us to offer more films, but we are also fortunate in that we had a large crop of excellent Colombian and international films to choose from, as you can see from our program, which features original, provocative stories by newcomers and more established directors.

I cordially invite you to visit Cartagena during the last week of February, where you can see retrospectives, films that have won awards at prestigious international festivals, the latest works of famous directors, whose names you are probably familiar with, and not-so-famous ones who are making their debuts, but on whose vision and talent the future of the industry depends. For further details, please consult the program below. And to make sure everyone has a chance to experience the festival this year, screenings will begin at 9:00 a.m. and you can see up to six a day ─approximately 25% of the entire program.

The full list of the sections unveiled at the January 24 press conference can be downloaded HERE in PDF format.

 

The Carlyle Group Raises $308 Million for Investments in Peru

  |   For  |  0 Comentarios

Carlyle recauda 308 millones de dólares para su primer fondo de inversión en Perú
Wikimedia CommonsBy: And2000 . The Carlyle Group Raises $308 Million for Investments in Peru

Global alternative asset manager The Carlyle Group (NASDAQ: CG) today announced it has raised $308 million for Carlyle Peru Fund, L.P. and its parallel vehicles, extending the South America investment presence the firm established five years ago.

The Fund will be invested by Carlyle in consultation with Credicorp, Peru’s largest bank, across industries including healthcare, retail and consumer, services to mining, construction and infrastructure businesses, and education. Carlyle opened its Lima office last year and now has four full-time investment advisory professionals based there.

Juan Carlos Felix, Carlyle Managing Director and Co-head of the South America Buyout team, said, “We see many long-term investment opportunities for our new Peru Fund in this vibrant market. South America is undergoing a transformational change toward more developed economies, with a new middle class being created, and we believe Peru is at the leading edge of that trend. We have the right team in place on the ground in Lima to partner with entrepreneurs and family business owners to create lasting value.”

Marco Peschiera, Principal and Head of Carlyle’s Peru team, said, “We believe the Peruvian private equity market remains underdeveloped, with a large percentage of medium-size family controlled businesses providing ample room for growth. Our team is well positioned to assess risks and rewards in Peru and we have a great local partner in Credicorp with its unmatched Peruvian platform. We will also benefit from Carlyle’s strong global presence and network in helping our local partners and founders take their companies to the next level of regional and global success.”

The $308 million Peru fund joins the nearly $1 billion raised by Carlyle for two investment funds dedicated to buyouts in South America and Brazil, which have invested in six companies under the direction of a team based in Sao Paulo, Brazil.

Nomura Hires Cliff Gallant as Senior Analyst for Insurance in US Equity Research

  |   For  |  0 Comentarios

Nomura, Asia‘s global investment bank, announced today that Cliff Gallant has joined the firm as a Managing Director and senior analyst covering Insurance companies in the firm’s US Equity Research department.

Gallant, who joins Nomura from Keefe, Bruyette & Woods, is an established leader and highly-regarded analyst in the Insurance industry with nearly 20 years of experience.  Gallant has been recognized by Institutional Investor and Greenwich with the #2 ranking in Insurance among boutique firms.  Gallant has also been recognized with The Wall Street Journal‘s “Best on the Street” award in 2012 and in 2007.

Gallant will be joining Nomura analysts Glenn Schorr (Brokers & Asset Managers), Bill Carcache (Consumer Finance) and Keith Murray (Banks / Mid-Cap), and Financials Sales Specialist, Laurence Madsen , to further solidify Nomura’s successful Financials content franchise in the US.

 

Henderson: Europe’s corporate success transcends the local economy

  |   For  |  0 Comentarios

Henderson: El éxito de las empresas europeas trasciende la economía local
Richard Pease, manager of the Henderson European Special Situations Fund. Henderson: Europe’s corporate success transcends the local economy

Newspaper headlines about Europe rarely make for happy reading. Rising unemployment rates, wavering economic growth, sovereign debt crises and political drama sound like a shopping list of negatives – hardly the sort of backdrop that makes for a favourable investment.

Yet, amid the tough economic environment the European equity market has done remarkably well. So well in fact, that the FTSE World Europe ex UK Total Return Index rose 17.8%1 in 2012 in sterling terms. Not bad for a region that has spent much of the past few years reeling from one crisis to another.

Why are European equities doing so much better than the economy? First, it reflects the market taking some comfort from the pledge made in July 2012 by Mario Draghi, President of the European Central Bank (ECB), that the ECB would do “whatever it takes to preserve the euro”.  This was quickly followed up by the creation of Outright Monetary Transactions (OMT), a programme that effectively backstops eurozone governments by buying their short-term debt so long as they agree to stringent fiscal conditions.  

OMT’s existence alone has helped reduce one of the biggest tail risks facing European investors – denomination risk.  Investors have become less fearful that an investment in the troubled periphery will be repaid in devalued lire or pesetas, rather than euros.

It is perhaps no coincidence that just as the existential fears surrounding the eurozone have faded, the spotlight has fallen on the US and the wrangling over how to resolve the US federal budget deficit. Investors are quickly appreciating that Europe is not alone in needing to bring government spending under control.

Second, there is a gradual recognition that a domestic economy and the stock market are not always connected.  Several emerging markets, such as Indonesia and Russia, enjoyed strong economic growth last year but it did not follow that their stock markets were all winners. Taking this analogy further, just because a company is domiciled in a country does not mean its performance need reflect the local economy.

With careful stock selection it is possible to avoid the worst of the local economic headwinds and benefit from growing niche industries and more dynamic economies outside Europe. Those European companies with a global footprint mean that even if the local economy is not firing on all cylinders, it is likely that the economies of other countries in which it operates may pick up the slack. For example, Swatch Group, the watch and jewellery company that counts Omega and Longines amongst its many brands, has less than 37% of its sales in Europe, with the fast-growing Asian region accounting for just over half its sales. With brands straddling different price brackets as well as countries, the company benefits from a diversified customer base.

Other European companies are operating in industries that are enjoying secular growth that is largely independent of the economic cycle. A good example is the fragrance and flavourings business, which is consolidated into the hands of a few players. Two European companies, Symrise of Germany and Givaudan of Switzerland, are at the forefront of this industry, creating the ingredients that improve the taste of food and providing the fragrance in cosmetics, perfumes and humbler personal care products. With consumers becoming increasingly demanding in terms of quality and developing markets wanting the same products as those used in rich nations, the only real constraint on this market is the size of the world’s population, which is expected to grow by two billion over the next three decades.

One of the advantages of European companies is that they can provide exposure to fast-growing areas of the world but with the reassurance that comes from being listed on a well-regulated, established stock exchange and the good corporate governance that entails. In fact, companies such as Bureau Veritas, the French testing and inspection group, make a virtue of their European roots and the quality and trust it engenders.

Similarly, Kone, the Finnish lift manufacturer, receives orders because customers trust the quality of its product: it is simply not worth the risk of installing an inferior lift in a building when reliability and safety are paramount. Through maintenance and service contracts Kone is able to enjoy recurrent earnings from an installed base of more than 850,000 lifts and escalators that help reduce the cyclicality from its original equipment manufacturing business.

There is no denying that the last few years have been challenging for European companies but, in many cases, this backdrop has hastened reforms and efficiencies meaning that those European companies that remain are generally in strong financial shape.  At the aggregate level, therefore, European equities look attractive, although, in our view, a selective approach can help isolate those companies with even stronger prospects.

1Source: Datastream, at 31.12.12

Searching for income in emerging market equities

  |   For  |  0 Comentarios

It is time for western investors to diversify their dividends exposure into emerging markets where low levels of corporate debt, coupled with high profitability, support dividend growth.

Looking forward, we expect dividend income will grow in significance in overall EM equity returns, as capital gains achieved over the past decade will be difficult to repeat. Moreover, in a volatile equity environment dividend-paying stocks can smooth portfolio volatility. Today, more than 600 stocks in global emerging markets offer a dividend yield of more than 2% and are sufficiently liquid for institutional investors.

Emerging markets: more than a growth story

Until recently, emerging markets (EM) equities did not figure in an income seeker’s horizon. After all, companies in the developing world have generally preferred to use profits to grow the business rather then distribute them to shareholders. Hence, the perception that EM investments will offer share price gains but little income.

However, following the Asia crisis and several other crises in the 1990s companies in the emerging world began to embrace a dividend culture, prioritizing good cash flow and prudent balance sheets. Additionally, investors increasingly began to favour the stability of dividends. This trend has accelerated in the post-credit crisis environment as the ‘search for yield’ has intensified.

Currently, the dividend yield on EM equities is approximately 3%, higher than for some major developed markets, such as the US (2%) and Japan (2.6%). Also, EM companies will pay 35% of earnings as dividends in 2012. This is one third above what in was in the year 2000.

To view the complete story, click the attacehd document above.

Schroders appoints new CEO of North America and Co-Head of Fixed Income

  |   For  |  0 Comentarios

Karl Dasher , Head of Fixed Income, will also become Chief Executive Officer, North America on July 1, 2013.  Philippe Lespinard will be appointed Co-Head of Fixed Income from this date and will join the Group Management Committee, as Schroders told in a press release. 

Massimo Tosato , Executive Vice-Chairman said, “We believe that Karl is the best person to help us realize the major opportunity we see to grow in North America and we expect it to become a significantly larger proportion of our total business over the next five years across Fixed Income, Equities, Multi-asset and Alternatives.”  

Karl Dasher said, “Philippe and I have worked closely together since I recruited him as Chief Investment Officer Fixed Income.  He has been integral to the improvements we have made to our Fixed Income business in terms of the enhanced investment process and depth of investor talent. I look forward to working with him to continue to grow the business.”   

After 19 years with Schroders, Jamie Dorrien-Smith , Chief Executive Officer, North America, will step down from his role on July 1, 2013 and retire from the firm.  He has headed North America since 2006, during which time we have seen a transformation in the performance of our Institutional business and the launch of our Intermediary business in the US.  Jamie leaves with our thanks and best wishes for the future. 

 

Opus Fund Services opens a new office in New York

  |   For  |  0 Comentarios

Opus Fund Services, an independent full-service fund administrator, today announced the expansion of its US platform with the opening of its New York office. The Park Avenue location will initially focus on business development and will be headed by the new Director of Sales and Business Development, Jorge Hendrickson.

 

Jorge previously worked at Concept Capital Markets, LLC in its Prime Services Group as Vice President of sales and business development. Prior to Concept he worked for five years on the buy side, most recently at Trading Cross Connects, specializing in allocating capital and infrastructure services to emerging managers. He was previously at Intrepid Capital Management and Bridgewater Associates.

Barclays hires 16 for the Wealth and Investment Management division

  |   For  |  0 Comentarios

“We are pleased to welcome these talented individuals to Barclays,” said Mitch Cox , Head of Wealth Management, Americas for Barclays.  “The addition of these seasoned Investment Representatives demonstrates our continued focus on serving the sophisticated needs of our clients across the Americas.  These hires underscore our commitment to attracting top-performing professionals who seek Barclays unique, in-depth approach, of guiding clients to customized solutions that extend far beyond their investment portfolio.”

New York

Ramon Hache joins Barclays as a Managing Director from Deutsche Bank’s Markets Coverage Group, where for 10 years he served high net worth individuals and family offices based primarily in Latin America.  Prior to joining Deutsche Bank, Mr. Hache was an Investment Advisor at HSBC and a Sales Trader in the Private Banking division of JP Morgan. Mr. Hache holds a BS from Marist College.

Stephen Brazell joins Barclays as a Director from Deutsche Bank’s Markets Coverage Group where he served high net worth individuals and family offices based primarily in Latin America.  Prior to joining Deutsche Bank in 2004, Mr. Brazell was the Head of Private Bank Emerging Markets desk at JP Morgan.  Mr. Brazell holds a BS from Indiana University and an MBA from the University of New Hampshire. 

Joseph Chung joins Barclays as a Director from Deutsche Bank’s Markets Coverage Group where he advised ultra high net worth clients based in Latin America.  Prior to joining the Markets Coverage Group, Mr. Chung worked in the Private Wealth Management division at Deutsche Bank, which he joined in 2003.

Steven C. Guggenheimer joins Barclays as a Director from Merrill Lynch’s Global Wealth Management division, bringing with him over 26 years of wealth management experience.  Most recently, Mr. Guggenheimer was a Senior Vice President at Merrill Lynch, where he served high net worth individuals.  Prior to this, Mr. Guggenheimer was a Managing Director at Neuberger Berman. He holds a BA from Haverford College.

George M. Zaki joins Barclays as a Vice President from Merrill Lynch’s Global Wealth Management division.  Most recently, Mr. Zaki was a Financial Advisor at Merrill Lynch serving high net worth individuals.  Previously, he was a Client Associate at Neuberger Berman. Mr. Zaki holds a BA from Fairmont State University.

Jonathan Mann joins Barclays as a Director from AllianceBernstein bringing with him more than 29 years of industry experience.  Previously, Mr. Mann was responsible for the overall management of Bernstein Global Wealth Management’s New York Region and was a Senior Portfolio Manager for Bernstein’s International Value Team.  He holds a ­­­­­BA from Rutgers College and an MBA from the Wharton School of the University of Pennsylvania.  Mr. Mann serves on the Board of the American Friends of the Open University of Israel.

All six Investment Representatives report to Mark Stevenson , Managing Director and Regional Manager for New York.

Houston

Don Childress , CFA joins Barclays as a Director from the Private Wealth Management division of Goldman Sachs, bringing more than 14 years of experience serving high net worth clients and families.  Prior to joining Goldman Sachs, Mr. Childress spent five years in the Tax Accounting and Investment Banking divisions at Price Waterhouse LLP.  He holds a BBA from Baylor University and an MBA from the University of Texas at Austin.

Jeff Collins also joins Barclays as a Director from the Private Wealth Management division of Goldman Sachs, bringing more than 15 years of wealth management experience.  Prior to joining Goldman Sachs, Mr. Collins worked in Real Estate Development at Austin Capital Partners.  He holds a BA and an MBA from the University of Texas at Austin.

Neil Stone also joins Barclays as a Director from the Private Wealth Management division of Goldman Sachs, bringing more than 14 years of experience serving high net worth clients and families.  Previously, Mr. Stone worked in the Investment Banking division at Prudential Securities and in Loan Syndication at Texas Commerce Bank, Chemical Bank.  He holds a BA and an MBA from the University of Texas at Austin and serves on the board of Houston Arboretum & Nature Center.

This team of Investment Representatives in Houston report to Steve Head , Managing Director and Regional Manager for Texas.

Beverly Hills

Watt W. Webb III joins Barclays as a Director from BNY Mellon where he was a Senior Director – Portfolio Management serving ultra high net worth families, executives, hedge fund managers, and business owners.  Prior to joining BNY Mellon, Mr. Webb was a Senior Vice President – Equity Research and Portfolio Management at Oakwood Capital Management LLC, and Portfolio Manager at Cornerstone Investment Counselors, Inc.  He holds a BA from Cornell University, an MA from The Johns Hopkins University and an MBA from Harvard Business School.

Warren Cohn joins Barclays as a Director from US Trust bringing with him over 20 years of industry experience. At US Trust, Mr. Cohn was a Senior Private Client Advisor providing a variety of wealth planning and financial management services to clients within the entertainment and sports industry. Previously, Mr. Cohn was a Senior Director in the Private Wealth Management Group at BNY Mellon. He holds a BA from The George Washington University and an MBA from Nova Southeastern University.

Mr. Watt and Mr. Cohn report to Brian Sears , Managing Director and Regional Manager for the Los Angeles and Beverly Hills offices .

Los Angeles

Adam Morgens, CFA joins Barclays as a Vice President with over eight years of industry experience. Mr. Morgens joins the organization from the Institutional Sales division of UnionBanc Investment Services LLC, which is the broker-dealer subsidiary of Union Bank, N.A.  Serving as a Vice President at Union Bank, he developed and managed relationships with institutional and middle market fixed income portfolio managers. Prior to working in institutional sales, Mr. Morgens traded all aspects of fixed income for the broker-dealer, including corporate bonds, mortgage-backed securities and municipal bonds. He holds a BS from the University of Southern California, Marshall School of Business.

Mr. Morgens reports to Brian Sears , Managing Director and Regional Manager for the Los Angeles and Beverly Hills offices.

Boston

Barry Pederson joins Barclays as a Director, bringing with him 20 years of financial services experience. At his predecessor firms, Morgan Keegan , Sterne Agee & Leach and A.G. Edwards , he was a partner on the institutional sales and research teams.  Before entering the financial services industry in 1993, Mr. Pederson played twelve seasons, 1980-1992, of professional hockey in the National Hockey League for the Boston Bruins, Vancouver Canucks, Pittsburgh Penguins and Hartford Whalers.  He is also a studio co-host for the New England Sports Network’s (NESN) Boston Bruins television broadcasts.

Mr. Pedersen reports to Marty Courage , Managing Director and Regional Manager for Boston.

Chicago

Adam Strauss joins Barclays as a Vice President from the Private Wealth Management Division of Goldman Sachs where he served high net worth individuals and families.  Prior to joining Goldman Sachs in 2010, Mr. Strauss was a Managing Consultant at Michael Page International. He holds a BS in from Denison University and an MBA from The University of Iowa.

Mr. Strauss reports to Bill Scherr , Director and Regional Manager for Chicago.

Miami

Ileana Platt joins Barclays as a Director from the Private Banking division of Credit Suisse bringing with her more than 24 years of wealth management experience.  At Credit Suisse Ms. Platt was a Director serving high net worth individuals and families in Peru, Mexico, Bolivia, and Panama. Prior to joining Credit Suisse, Ms. Platt was a Vice President at Donaldson, Lufkin & Jenrette Securities Corporation and worked for the US Private Wealth Management division of Citibank. She holds a BBA and an MBA from Florida International University.

Rafael Urquidi also joins Barclays as a Director from the Private Banking division of Credit Suisse where he served high net worth clients and families.  Prior to joining Credit Suisse, Mr. Urquidi held positions at Donaldson, Lufkin & Jenrette Securities Co. and UBS International.  He holds a BS from the Moore School of Business at the University of South Carolina.

Ms. Platt and Mr. Urquidi report to Marilyn Gonzalez , Director and Regional Manager for Miami.

With 14 offices across the U.S. including the Barclays Wealth Trustees (U.S.), NA., the Wealth and Investment Management division of Barclays provides comprehensive wealth management to high net worth individuals and families.  Barclays focuses on understanding its clients’ financial needs, personal aspirations and risk tolerance in order to design and implement highly customized investment solutions.

Eagle Production Inc, ready to bring its new fund to investors

  |   For  |  0 Comentarios

How did the fund started?

After years of working on individual prospects focused on the Permian Basin, and through that process creating a large inventory of prospects, Eagle Production Inc (EPI) has reached the critical mass of “going public”. The fund is a way to take EPIs expertise and experience to the next level of oil and gas production and to add value for all our investors. This process has also been aided by recent technological advances in reservoir research, plus drilling and completion technology, including fracking.

What is your investment process?

First, EPI is currently high-grading prospects, adding to prospects based on economic and geological analysis, and drilling wells with existing partners. With the fund, the process is that EPI is making these investment opportunities available to a wider range of investors looking for alternative low risk high return options. The fund structure provides security and transparency, with a proven methodology, and clear exit strategy.

What is your investment universe?

The fund will work with accredited investors only, but that said, all investors looking for low risk, high return alternative investments would be suitable.

What is the business strategy of the group for the coming months?

This is clearly defined in the fund documents. In the coming months EPI will begin to lease up the priority high-graded prospects in inventory, then begin a systematic drilling program that is scheduled to produce 250 BOD (Barrils of oil per day) within 12 months.

Do you plan to launch new products, what type?

The current EPI Fund is $120 million in four closings. Once this is complete, yes, we will be launching similar additional products.

What is your management philosophy?

EPI focuses on a developmental drilling program, meaning working in proven areas where our geological expertise and experience produces a high success rate in terms of drilling commercially successful oil and gas wells. We believe in good science, careful evaluation, building high-graded prospects to add to our inventory, then developing those to critical mass of at least 1,000 BOPD production, and divesting within year 4.

How is structured the investment team? How many professionals do you have and how decisions are taken?

A combination of geologists, engineers, financial analysis, and comprehensive economic modeling allows us to decide on the best approaches, structures and deal selection.

What is the fund’s assets?

Oil and gas lease holds and producing properties. The current fund has a maximum of $120 million.

What risk management systems do you used?

All projects must meet internal risk management criteria, which is part of the 80% success rate of developmental drilling. Any prospect not capable of meeting this model is not considered. We also have a 4 to 1 ROI guideline and minimum pay-out in 24 months or less.

In what kind of environment the strategy performs better?

In the environment today in the Permian Basin. This is the optimum time and conditions are improving as the technology continues to improve. We like our economics in the $70-$100 per barrel range.  (Currently above market expectations at $95.96)

Does the fund have a capacity limit? $120 million

How was the performance so far? Expectations? Profitability for the next 12 months? Fund is just starting, but based on our past experience, we expect to reach at least 250 BOD in 12 months, which is about $500,000 per month. ROI 62%-83% per year with an annual growth rate of 42%