Asset Management Finance’s innovative financing allows Shapiro Capital Management to preserve its independence and facilitate future equity transfers among its partners
NEW YORK (February 14, 2006) – Asset Management Finance Corporation (AMFSM) has made an investment in Shapiro Capital Management, LLC ("Shapiro"), an Atlanta-based asset management firm, it was announced today. Under the terms of the Revenue Share Interest (RSI) agreement, AMF will receive a specified percentage of Shapiro’s gross revenue for a period of ten years.
Shapiro Capital Management is an institutional asset management firm based in Atlanta, Georgia with more than $2 billion of assets under management. Founded in 1990 by Sam Shapiro and Mike McCarthy, the firm manages small-, mid-, and all-cap equity products and adheres to an absolute value discipline approach to investing in US equity markets. The passive investment by AMF provides Shapiro with the ability to effectively transfer equity within the firm. Shapiro’s management, led by chairman and chief executive officer Sam Shapiro, will retain complete independence and operating control.
"AMF has developed an innovative financing vehicle that allows firms such as ours to address various organizational needs without sacrificing ownership or control. As a result, we will be able to effectively transfer equity in our firm from one generation to the next while maintaining total independence and complete continuity of our management team," said Sam Shapiro.
"We are pleased to have the opportunity to invest in this terrific firm," said Norton Reamer, president and chief executive officer of AMF. "It is increasingly clear that independence is an important factor in the success of asset managers like Shapiro Capital. We are happy to be able to support the ongoing success of the firm through the use of our proprietary Revenue Share Interest financing methodology."
AMF’s investment in Shapiro closely follows announcements the company has made recently relating to the continued expansion of its capital base, including a $100 million revolving credit facility arranged by Société Générale and the addition of Tokio Marine & Nichido Fire Insurance Co., Ltd. as AMF’s third institutional equity investor joining Pacific Life Insurance Co. and Proctor NBF Holdings, Inc. (a subsidiary of National Bank Financial).
AMF’s Revenue Share Interests are designed to address the varying organizational liquidity needs of independent asset management firms with between $500 million and $40 billion in assets under management, as well as the similar needs of privately owned alternative investment managers and asset management firms seeking independence through spin-offs and divestitures.
About Shapiro Capital Management, LLC
Founded in 1990, Shapiro Capital Management is an Atlanta, Georgia based investment manager specializing in small and mid-capitalization domestic securities and offering multi-capitalization products. The company offers discretionary management of equity and fixed income portfolios for a variety of clients consisting primarily of public and corporate pension funds, foundations, endowments and individual investors.
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