Presentation is loading. Please wait.

Presentation is loading. Please wait.

Analyst Presentation New Partnership with Landmark Partners June 14, 2016.

Similar presentations


Presentation on theme: "Analyst Presentation New Partnership with Landmark Partners June 14, 2016."— Presentation transcript:

1 Analyst Presentation New Partnership with Landmark Partners June 14, 2016

2 │ Disclaimer Forward Looking Statements This presentation may contain forward looking statements for the purposes of the safe harbor provision under the Private Securities Litigation Reform Act of 1995. The words or phrases ‘‘will likely result,’’ ‘‘are expected to,’’ ‘‘will continue,’’ ‘‘is anticipated,’’ ‘‘can be,’’ ‘‘may be,’’ ‘‘aim to,’’ ‘‘may affect,’’ ‘‘may depend,’’ ‘‘intends,’’ ‘‘expects,’’ ‘‘believes,’’ ‘‘estimate,’’ ‘‘project,’’ and other similar expressions are intended to identify such forward-looking statements. Such statements are subject to various known and unknown risks and uncertainties and readers should be cautioned that any forward-looking information provided by or on behalf of the Company is not a guarantee of future performance. Actual results may differ materially from those in forward-looking information as a result of various factors, some of which are beyond the Company’s control, including but not limited to those discussed above and elsewhere in this presentation and in the Company’s most recent Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 15, 2016. Due to such risks and uncertainties and other factors, the Company cautions each person receiving such forward- looking information not to place undue reliance on such statements. Further, such forward-looking statements speak only as of the date of this presentation and the Company undertakes no obligations to update any forward looking statement to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events. ** This presentation references a non-GAAP performance measure referred to as economic net income (“ENI”). The Company uses ENI to represent its view of the underlying economic earnings of the business. ENI is used to make resource allocation decisions, determine appropriate levels of investment or dividend payout, manage balance sheet leverage, determine Affiliate variable compensation and equity distributions, and incentivize management. The Company’s ENI adjustments to U.S. GAAP include both reclassifications of U.S. GAAP revenue and expense items, as well as adjustments to U.S. GAAP results, primarily to exclude non-cash, non-economic expenses, or to reflect cash benefits not recognized under U.S. GAAP. For a further discussion of how the Company uses ENI and why ENI is useful to investors, along with various U.S. GAAP to ENI reconciliations, refer to the Company’s Quarterly Report on Form 10-Q filed on May 10, 2016 and Annual Report on Form 10-K filed on March 15, 2016. 2

3 │ Summary of Partnership 3 New partnership with Landmark Partners, a leading global secondary private equity, real estate, and real asset investment manager –$15.5 billion of committed capital since inception in 1989 OMAM acquires 60% of the equity; remaining 40% retained by management –Long-term management retention agreements in effect Approximately $240 million in cash at closing funded through ample financial resources Up to an additional $225 million based on the growth of the business through 2018 Purchase multiple of 8-10x pre-financing Economic Net Income (ENI)** generated by the Landmark transaction, prior to financing costs No performance fee revenue or co-investment assets acquired Up to 12% accretive to 2017 ENI per share

4 │ Overview of Landmark Partners 4 $15.5 billion of committed capital since inception in 1989 –$5.3 billion raised in most recent fundraising cycle 26-year track record; one of the longest in the secondary industry –Attractive growth and margins Differentiated secondary investing approach generates strong long-term results Stable, deep, and experienced investment team –Average senior tenure of 17 years –Total of 89 employees Diversified, global, institutional client base Headquartered in Simsbury, CT with offices in New York, Boston and London Leading global secondary private equity, real estate, and real asset manager $11 Billion Raised Since 2000 Diversified Business By Assets Private EquityReal Estate Institutional Client BaseInvestment Capabilities ($B)

5 │ Benefits to OMAM 5 Strategic Benefits Meaningfully increases OMAM’s exposure to fast-growing, in-demand alternative asset classes –25% pro forma revenue from alternatives Highly diversifying to OMAM’s business –Expands portfolio of high quality Affiliates –Increases non-correlated product mix Access to highly regarded secondary platform –26-year track-record among longest in the industry –Leader in global private equity, real estate, and real assets –Among top 10 managers for secondary capital raised Validates OMAM’s acquisition strategy –Partnership model attractive to high quality firms Provides additional opportunities to leverage OMAM’s growth strategy and Global Distribution –Enhancement and expansion of Landmark product set –Global distribution opportunities in US and abroad Financial Benefits Significant earnings accretion –Up to 12% accretive to 2017 ENI per share –Enhanced future growth opportunities in alternatives 2016-2018 fundraising cycle expected to meaningfully increase OMAM’s NCCF Diversifies and enhances OMAM’s earnings stream –Stable management fee revenue based on committed capital –No performance fee revenue acquired –Locked-in capital for 8-10 year fund life –Reduces OMAM’s exposure to market-driven earnings volatility Structure aligns management to grow their business –40% equity retained –Additional payment based on growth through 2018 –Profit-sharing business model –Long-term management retention agreements Efficient OMAM capital management –Financial leverage closer to target –Significant IRR / ROI opportunity –Shared co-investment and carry on new funds Landmark achieves all the key objectives of OMAM's selective acquisition strategy

6 │ Execution of OMAM’s Partnership Model Partnership with Landmark – A top-tier global secondary alternatives platform Leverages OMAM’s Global Distribution Platform – Strong demand for Landmark products and expertise in certain complementary U.S. channels and international markets covered by OMAM’s Global Distribution Provides Product Development Opportunities – Product extensions across secondary asset classes Co-investment supports growth of Landmark’s business while providing significant return and carry opportunity to OMAM Generates Core Business Growth – Leading position in private equity, real estate and real asset secondary markets enables Landmark to grow asset base and gain market share Global Distribution Collaborative Organic Growth (Growth and Product Development Capital) Core Affiliate Growth (Investment Performance and Net Client Cash Flows) OMAM’s Aligned Partnership Model - Affiliate-level employee ownership - Long-term perspective - Talent management - Operating autonomy - At-scale Affiliates - Profit-sharing model Proves out OMAM's acquisition strategy and value proposition Landmark 6


Download ppt "Analyst Presentation New Partnership with Landmark Partners June 14, 2016."

Similar presentations


Ads by Google