News & Analysis

Old Mutual acquires Landmark

OM Asset Management has purchased a majority stake in the secondaries firm less than two months after former owner Religare sold its interest.

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Landmark Partners has been acquired by Old Mutual’s asset management unit almost two months after the secondaries firm’s previous owner, Religare Enterprises, announced it was selling its stake back to management.

OM Asset Management (OMAM) will pay about $240 million in cash at closing for a 60 percent equity stake in Landmark, according to a statement. The deal is expected to close by 31 August.

“OMAM provides strategic and operational benefits to Landmark, including global distribution capability and new product development,” Francisco Borges, managing partner at Landmark, said. “We are thrilled to enter into this partnership with OMAM, which is structured to ensure alignment with the interests of our investors and organisation.”

The acquisition will not affect Landmark’s investment process, investment decision authority or investment teams and there are no personnel departures, according to the statement.

Landmark’s management team will retain a 40 percent stake in the firm.

James Ritchie, OMAM chairman said: “Landmark fits comprehensively into our stated acquisition strategy, providing a leading platform in an increasingly important asset class, leveraging the strength of our global distribution group, expanding our range of active strategies for investors, and further diversifying our earnings base by broadening our participation in alternative investment strategies.”

Landmark’s previous owner, Religare, had agreed to pay up to $171.5 million for a 55 percent stake in the firm in December 2010, saying the acquisition would allow Landmark to expand its secondaries investment activity into countries where Religare’s financial services platform was present.

OMAM has offices in Boston and London and had $218 billion in assets under management as of 31 March, according to the statement.

Simsbury, Connecticut-based Landmark had around $15.5 billion in committed capital as of the same date and employs 89 professionals in four global offices including London, New York and Boston.