We are pleased to announce that Affiliated Managers Group, Inc. (“AMG”) has entered into a definitive agreement to acquire a minority equity interest in OCP Asia Limited (“OCP”).
AMG is a leading partner to independent active investment management firms, typically referred to as “Affiliates”. AMG has been listed on the New York Stock Exchange (NYSE: AMG) since 1997 and currently has a market capitalization of US $6.7 billion. Founded in 1993, AMG owns equity stakes in more than 30 independent Affiliates which manage over US $700 billion globally.
Our Partners, Stu Wilson, Teall Edds and Dan Simmons, will continue to own the substantial majority of OCP’s equity. As before, they will retain direct management responsibility for OCP’s day-to-day operations and investment management as well as control over all aspects of the firm’s strategic direction. This transaction is consistent with AMG’s established strategy of investing in minority interests of Affiliates while allowing these great entrepreneurial businesses to flourish with confidence by preserving their full investment independence and operational autonomy across generations of Affiliate management.
We are excited to welcome AMG into the “OCP family” as a market-savvy, sophisticated and trusted partner who will help us to stay abreast of market opportunities and assist us in capitalizing on them effectively. Through our extended mutual due diligence process with AMG, we have discovered much in common both philosophically and culturally. These shared characteristics include long-term investor and client relationships, strong established entrepreneurial corporate cultures, noted reputation for staff retention and top-flight professionalism. We believe that this new affiliation will enable us to retain our proud identity as the leading dedicated direct lending franchise in Asia-Pacific while providing us with access to new institutional relationships through AMG’s proven global distribution capabilities, which include complementary and strategic resources in key global markets.
Having established OCP in 2009, we believe that this announcement brings a momentous validation of our business model and provides confidence that we are well-positioned to sustain our franchise through the coming decades. As AMG’s capital investment is being deployed as permanent equity from a publicly listed company, this transaction avoids future risks commonly associated with Private Equity transactions which are funded from defined-lifetime vehicles. As a result, this affiliation affords liquidity for our Partners to support future fund formation initiatives and to create a succession planning framework to incentivize OCP’s leadership for generations to come.
With this announcement, we believe that we are stronger, more competitive and have greater confidence than ever before. We are thrilled to have accomplished this while retaining our independence and enduring corporate culture to the benefit of our employees, investors and borrowers.
Finally, we thank Morgan Stanley Asia Limited and Kirkland & Ellis for their guidance as financial and legal advisers to this transaction.
Please feel free to contact us at info@ocpasia.com with any questions that you may have.
OCP Asia
30 April 2021
