NEW YORK (December 11, 2006) – Asset Management Finance Corporation (AMFSM) announced today it has made an investment in International Foreign Exchange Concepts, Inc. ("FX Concepts"), one of the world’s leading privately-held managers of foreign exchange risk. AMF’s investment in FX Concepts, an alternative investment manager, closely follows the firm’s recent transactions with Newgate Capital Management, Opus Capital, and Shapiro Capital Management, and increases both the breadth and diversity of AMF’s investment portfolio.
Founded in 1981, FX Concepts was one of the first independent currency advisors and is a pioneer in the use of quantitative analysis, model-building, and technical forecasting to manage foreign currency trading and risk. Under the terms of the Revenue Share InterestSM (RSISM) agreement, AMF’s financing will provide passive, non-voting capital in exchange for a specified percentage of FX Concepts’ revenues for a fixed time period.
"FX Concepts has been championing currency investing as a source of alpha for nearly two decades, and is a global leader in the field with an outstanding roster of institutional clients," said Norton H. Reamer, president and chief executive officer of AMF. "We are very excited to play a role in ensuring the continued independence of such a dynamic, entrepreneurial organization."
Since moving into investment management in 1987, FX Concepts has grown rapidly and has assets under management in excess of $12 billion. The firm is majority-owned by its employees; the average tenure of its investment professionals is 10 years, with the core team having worked together for nearly 20 years.
"We recognized from day one that our people would be the key to the firm’s success," said John R. Taylor, Jr., chairman and founder of FX Concepts. "Continuity in the portfolio management team is critical to maintaining the nimbleness we need to succeed in this highly dynamic market. By working with Asset Management Finance, we will have the available capital to continue investing in our people and our business, as well as to plan for the future of the firm."
AMF’s Revenue Share Interests are designed for asset management firms to facilitate the successful completion of organizational liquidity initiatives including the financing of generational equity transfers, management buyouts, strategic growth opportunities and key acquisitions. Through this RSI agreement, FX Concepts is able to access the liquidity it needs without sacrificing any ownership or control.
"At AMF, we strongly believe that the kind of passion and creativity present at a firm like FX Concepts is in large part a function of its independence," said Richard H. Haywood, Jr., executive vice president at AMF. "We are pleased to have the opportunity to help the firm address its capital requirements through our investment."
About FX Concepts
FX Concepts is a global investment management and research firm specializing in foreign exchange and interest rate risk management. The company has more than $12 billion under management in currency overlay and absolute return programs for institutional clients worldwide. FX Concepts has extensive experience trading currencies and derivatives in both the developed and the emerging markets. Established in 1981 by its current Chairman John R. Taylor, FX Concepts is headquartered in New York with offices in London, Singapore and Sydney and representatives in Tokyo. For more information, visit www.fx-concepts.com.
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