NEW YORK (September 12, 2007) – Asset Management Finance Corporation (AMFSM) announced today that it has made an investment in Rigel Capital, LLC ("Rigel", or the "Company"), a leading active growth equity manager based in Seattle, Washington. AMF has provided capital in exchange for a specified percentage of Rigel’s revenues for a fixed period of time and will have a passive, non-voting interest in the firm during that time.
Rigel will use AMF’s investment to facilitate its ownership succession plan. Rigel’s objective is to align equity ownership within the Company in a way that will best enable it to retain and attract key personnel as it continues to grow its business through strong performance supported by first-rate client service. As part of the agreement, members of the existing management team have affirmed their long-term commitments to Rigel.
Founded in 1998 by George Kauffman, Rigel Capital specializes in domestic growth equity management with a strong emphasis on risk control. The Company provides investment management services to large institutional and high-net worth investors and currently manages $2.3 billion in assets. With strong historic absolute and relative performance, Rigel has exhibited a pattern of substantial asset growth since its inception. In 2003, Rigel was selected to participate in the California Public Employees Retirement System’s (CalPERS) Manager Development Program. To date, Rigel is one of only 17 investment management firms selected for this program run by CalPERS, the nation’s largest pension system.
"The agreement with AMF allows us to access liquidity without sacrificing control or the firm’s independence, two key components to our success," said Kauffman. "From the start, Rigel Capital has been defined by its people, processes, and unique culture. This transaction will allow us to provide for continuity in all these areas as we move forward."
"Rigel Capital is a terrific firm with a proven investment process and an excellent management team in place, and we at AMF look forward to establishing a strong and mutually beneficial relationship with them. We are excited to have the opportunity to invest in this outstanding organization," said Norton Reamer, President and Chief Executive Officer of AMF.
Barry Klayman, Senior Vice President at AMF, added, "With its focus on growth stocks, Rigel will further diversify AMF’s investment portfolio which currently includes domestic Small- and All-Cap Value, Foreign Exchange, REITs, and Emerging Markets managers."
AMF’s Revenue Share Interest investments are designed to help asset management firms facilitate organizational liquidity initiatives including the financing of generational equity transfers, management buyouts, strategic growth opportunities and acquisitions. Colchester Partners acted as financial advisor to Rigel in its transaction with AMF.
About Rigel Capital, LLC
Rigel Capital, LLC is a growth equity manager located in Seattle, WA focused on working with corporate and multi-employer retirement plans, foundations, endowments and family offices and the consultants who serve them. Rigel currently manages approximately $2.3 billion in assets under management for clients throughout the U.S.
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