Victory Capital Management Announces Acquisition of Munder Capital Management

April 17, 2014

Victory Capital Management Inc. and Munder Capital Management (“Munder”) announced today that Victory’s parent company, Victory Capital Holdings, Inc. (“Victory”), has entered into a purchase agreement to acquire Munder, including its wholly owned subsidiary, Integrity Asset Management, LLC (“Integrity”). The all-cash purchase will form a new independent investment advisory firm headquartered in Cleveland, Ohio. The transaction combines two strong Midwest-based investment management firms with multi-boutique business models, each recognized for its investment-centric culture. Financial terms were not disclosed.
“Victory and Munder are a natural fit culturally and from a business model perspective”
The combination will result in an investment management firm with over $37 billion of assets under management and a diversified lineup of investment offerings. The firm’s investment teams' underlying investment processes and decision-making will not change nor will their independence, and they will continue to employ the same disciplined investment approaches and utilize the same rigorous investment and risk management processes that have served as the foundation of their strategies.
“Victory and Munder are a natural fit culturally and from a business model perspective,” said David Brown, Chairman and Chief Executive Officer of Victory. “Both organizations value the same approach, with autonomous, chief investment officer-led investment teams that manage client assets in their own unique styles. Munder has four world-class investment teams that have excelled under this structure and we are excited to help them continue their growth going forward. By joining forces, we create an investment management firm that is even better positioned to achieve our clients’ goals and objectives for the long term.”
“The scale that results from forming the new company will allow our portfolio managers to continue having access to best-in-class resources and support to maintain their singular focus on money management,” said Tony Dong, Munder’s Vice Chairman, Chief Investment Officer and Lead Manager of Munder’s mid-cap investment team. “We will remain strongly aligned with our clients, focused on producing strong risk-adjusted returns and an attentive level of service. The new enterprise will provide a diversified platform of investment solutions that will allow us to continue to serve our clients. We share in the excitement to be part of this new company and believe our clients will readily appreciate the value and opportunity as well.”
Both firms’ shared commitment to an investment-centric culture will be maintained and highlighted at the new company, as will a continued commitment to delivering exceptional client service. These attributes will be the foundation on which the new company will operate.
Daniel Bandi, Chief Investment Officer of Integrity, said: “Integrity was founded on the principle of providing consistent, superior performance fostered by a culture that is both independent and client-centric. This opportunity will allow us to continue delivering strong performance for our clients today in the same environment and, more importantly, in the future.”
Senior executives and investment management personnel from Victory, Munder and Integrity will be significant investors in the new entity. This investment underscores and reflects their commitment and confidence in the new company and furthers the alignment of interests with current and future clients.
Additional equity financing for the new company will be led by funds managed by Crestview Partners and Reverence Capital Partners whose investors include U.S. and International institutional and high net worth investors. Each will make a significant investment in the new company.
Upon completion of the transaction, Victory’s David Brown will be appointed as Chairman and CEO of the new company and Christopher Ohmacht, current President of Victory, will serve as President. Jim FitzGerald, current President of Munder, will become Vice Chairman. The new company's board of directors will be management-led, with Mr. Brown as its Chairman and Mr. Ohmacht as an employee director. Other board appointments will be made and announced at a later date, as will the name of the new holding company. Victory, Munder and Integrity investment teams and other personnel will continue to operate from their respective locations in Cleveland, OH; Birmingham, MI; Cincinnati, OH; New York, NY; Boston, MA; Denver, CO; Tampa, FL; and Rocky River, OH.
The transaction, which is expected to close by the end of the third quarter of 2014, is subject to customary closing conditions and consents, including the consent of certain Munder-advised mutual funds and other Munder investment advisory clients.
Morgan Stanley & Co. LLC provided financial advice and Willkie Farr & Gallagher LLP provided legal advice to Victory. Munder was advised by Goldman, Sachs & Co., Sandler O’Neill & Partners, L.P. and Davis Polk & Wardwell LLP. Reverence Capital Partners was advised by Evercore Group LLC and Wachtell, Lipton, Rosen & Katz.
ABOUT VICTORY CAPITAL MANAGEMENT
Victory Capital Management is headquartered in Cleveland, Ohio with offices in New York, Cincinnati, Denver and Tampa. As of March 31, 2014, Victory had $18.6 billion in assets under management and advisement with 140 employees.
The firm provides investment advisory services to institutional clients including corporations, non-profits, public funds, Taft-Hartley and sub-advisory clients. Victory offers international and domestic equity and domestic fixed income products to these investors through separate accounts and commingled funds. Institutional assets under management at March 31, 2014 totaled $10.8 billion.
Victory is the investment advisor to The Victory Funds, a collection of 18 mutual funds, offering a variety of share classes. The firm also offers retail and retirement clients separately managed accounts through wrap fee programs and access to its investment models through unified managed accounts. Victory had $7.8 billion in retail assets under management and advisement as of March 31, 2014.
ABOUT MUNDER CAPITAL MANAGEMENT
Munder Capital Management is an institutional investment management firm providing highly disciplined domestic and international equity, as well as fixed income investment solutions. Together with its Integrity Asset Management affiliate, more than $18.4 billion of investment assets (as of March 31, 2014) are managed on behalf of corporations, retirement plans, insurance companies, municipalities, Taft-Hartley and mutual fund investors. Munder offers products across various asset classes that span the risk and capitalization spectrums in multiple markets through separate accounts, commingled funds and mutual funds. Based in Birmingham, MI with an office in Boston, Munder is an independently owned firm and its employees represent a significant percentage of ownership, contributing to its client-centric culture.
ABOUT INTEGRITY ASSET MANAGEMENT
Integrity Asset Management is a Rocky River, OH-based investment advisory firm specializing in managing value-oriented equity strategies, primarily for institutional clients. Established in 2003, the firm manages over $4.5 billion of assets as of March 31, 2014 for a diverse group of corporate, public, endowment, foundation and Taft-Hartley clients.
ABOUT CRESTVIEW PARTNERS
Founded in 2004, Crestview Partners is a private equity firm with a value orientation focused on the middle market. The firm’s partners have complementary experience and distinguished backgrounds in private equity, finance, operations and management. Crestview has deep experience in its focus sectors – financial services, media, energy and healthcare.
ABOUT REVERENCE CAPITAL PARTNERS
Reverence was founded in 2013, by Milton Berlinski, who is the Managing Partner, along with Peter Aberg and Alexander Chulack. Reverence Capital Partners LLC is a private investment firm focused on opportunities in financial services. The firm’s partners bring over 85 years of experience in financial services.

Contacts
STARKMAN
Eric Starkman, 212-624-9755
erics@starkmanpr.com
or
Jackie Condie, 212-370-7187
jcondie@starkmanpr.com

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Credit Sesame Launches First Totally Free Credit and Identity Protection Service

April 17, 2014

Press release source: MarketWatch

MOUNTAIN VIEW, Calif., April 14, 2014 /PRNewswire/ -- Credit Sesame, a leading consumer credit and personal finance company that provides millions of consumers access to free credit scores, free credit monitoring and better ways to save money and manage their finances, today announces the addition of the industry's first, no cost credit and identity theft protection service. The addition of this new service allows millions of consumers to access, monitor and manage their credit, improve their finances and protect their credit and identity, all in one place for free.
The new service provides consumers peace of mind that if they become one of the 16.6 million victims of identity theft , Credit Sesame will help them take immediate and effective action to stop the theft, minimize the damage and restore their identity.
"It's no secret that fraudsters are after your personal information and your credit reputation," said John Ulzheimer, credit industry expert. "Identity theft insurance and access to identity theft resolution specialists are two more ways to help restore your name if it is ever compromised. Normally these services are attributes of fee based services. To get them for free allows consumers to check one more concern off their list, while not spending a dime to do so."
Credit Sesame conducted a user survey and found that 65 percent of participants were concerned about identity theft and 24 percent had been victims of identity theft. Now consumers can monitor and learn about a potential identity theft breach quickly and in the event of identity theft, they have immediate access to certified identity restoration specialists to help remedy the situation, plus $50,000 in identity theft insurance to protect them against financial losses.
"Your personal financial information is under constant threat from global scammers and our new service gives consumers a powerful weapon to combat these forces," said Adrian Nazari, CEO of Credit Sesame. "Consumers now have a reliable source to get their free credit score and credit monitoring, build a complete picture and analysis of their credit and debt, find out what they can do to improve their finances and protect their credit and identity—all at the same time and in one place for free—without the need to use or expose their financial information at multiple websites."
"We provide the benefits of services like Credit Karma, Bankrate and LifeLock — all in one seamless free service — putting consumers in more control of their credit and finances in a way that has never been done before," said Nazari.
The service is accessible online via desktop and mobile devices. Consumers can sign up for the service in as little as 90 seconds. For more information visit CreditSesame.com , or check out Credit Sesame's mobile app — the #1 Credit and Identity Theft Protection App in the Apple App Store . Also available for download on Google Play for Android and Amazon for Kindle Fire.
About Credit Sesame Credit Sesame is the personal credit advocate and loan expert, helping people make smarter financial decisions to save money and live richly. From free credit scores and credit monitoring, to premium credit and identity theft protection, Credit Sesame is the only provider that gives consumers the tools they need to access, monitor and analyze their credit, improve their financial standing and protect their identity — all in one place.
Credit Sesame uses a proprietary savings recommendation engine, with bank-level analytics, that monitors the market, runs thousands of scenarios and analyzes each individual's financial profile to identify the best loans and savings opportunities. Customers receive unbiased recommendations on home loans, auto loans, credit cards and other loans, customized for their personal financial situation. For more information, visit http://www.creditsesame.com .
Credit Sesame is a registered trademark of Credit Sesame, Inc. All other trademarks and product names are the property of their respective companies.

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Industry Veterans join Manifold Partners - COO Departs

March 1, 2014

Manifold Partners announced the appointment of a new Chairman of the Board and a new member of its Scientific Advisory Board.

Fred Grauer, former Chairman of Barclays Global Investors, has stepped in to be Chairman of the Board of Manifold Partners LLC, replacing Donald H. Putnam of Grail Partners LLC, who remains on the board. Mr. Putnam continues as Chief Executive Officer of Manifold. Jeremy Evnine and Jim Creighton, both of Manifold Partners, are also board members.

Don Ezra, former Co-Chair Global Consulting, Russell Investments, has joined the Scientific Advisory Board, headed by Blake Grossman, also a former CEO and Chairman of Barclays Global Investments. The Scientific Advisory Board also includes Andrew Rudd, CEO of Advisor Software Inc. and former CEO of BARRA.

Mr. Grauer said “I have great respect for the talents of my Manifold colleagues with whom I have had a long and successful relationship. In business and innovation, the vital few make an extraordinary difference.”

“This is a big day for Manifold Partners” said Jim Creighton, a founder of Manifold Partners. “It is a pleasure to welcome Fred and Don to the Manifold Partners team.”

Mr. Creighton and Chief Science Officer Jeremy Evnine previously worked at BGI and were key to these recruitments. “Fred and Blake have followed our work for several years” said Dr. Evnine “and we are excited to have them here. Don has exactly the gravitas and deep experience we need to help set our scientific strategy.”

Manifold Partners also announced the departure of its COO Mike Lawsky. “Mike built up our infrastructure during his ten months as our COO; we are grateful for his service and pleased to have him as a continuing investor in our firm and its products” said Mr. Putnam. An executive recruited by Mr. Lawsky four months ago resigned with him. Both men worked off-site in Newport Beach, and the Company has closed that facility.

Mr. Grauer was Chairman/CEO of BGI from 1983 to 1998 during which AuM grew from $12 billion to $619 billion. Mr. Grauer lives in the Bay Area and may be reached at FGrauer@ManifoldPartners.com.

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Delaware Investments and Growth Team Announce Joint Venture

February 18, 2014

Source: BusinessWire

Today, Delaware Investments and its San Francisco–based Focus Growth team announced the creation of a joint venture: Jackson Square Partners. The new firm will be jointly owned by the members of the Focus Growth team and Delaware Investments.
Jackson Square Partners (JSP) marks a strategic evolution in the relationship between Delaware Investments and the Focus Growth team. The formation of JSP will allow both groups to achieve their long-term business objectives while continuing to deliver the high level of service clients expect.
“One of the core competencies of Delaware Investments is our ability to identify and nurture exceptional investment talent,” said Patrick P. Coyne, CEO of Delaware Investments, a member of Macquarie Group. “Our business success is driven by combining that talent with a strong operating platform and our focus on putting client needs first.
“The Focus Growth business is a terrific example of the success of our business model,” Coyne continued. “The assets managed by the team as well as its client footprint have grown significantly since joining Delaware in April 2005. Now that the team is close to achieving full capacity, it has reached a different stage in its life cycle. Creating this structure is a win-win for both groups as we can share in the Focus Growth team’s future success while continuing to expand our business, pursuing new opportunities to provide this asset class to clients.”
“Pat and his team have done a tremendous job in helping us grow this business over the past eight years,” said Jeffrey S. Van Harte, CIO of the Focus Growth team. “At this stage of our evolution, the formation of Jackson Square Partners allows us the opportunity to further develop our own business and brand. And, importantly, this new venture allows us to continue to manage the assets of our broad client base while we execute a smooth transition.”
Delaware Investments, which has more than $185 billion in assets under management as of Dec. 31, 2013, will provide operational support to JSP while it builds out its operating infrastructure. The intent is that JSP will serve as sub-advisor to the Delaware Investments mutual funds and other pooled vehicles and separately managed accounts currently managed by the Focus Growth team, pending the appropriate approvals.
Once the transaction is finalized, it is expected that about $17 billion in institutional assets could move to JSP. All members of the Focus Growth team are expected to become part of the new venture. The firm will be based in San Francisco and led by Van Harte.
About Delaware Investments
Delaware Investments, a member of Macquarie Group, is a global asset management firm that offers a wide variety of equity and fixed income solutions for individual and institutional investors. Delaware Investments is supported by the resources of Macquarie Group (ASX: MQG; ADR: MQBKY), a global provider of asset management, investment, banking, financial, and advisory services. Visit delawareinvestments.com for more information.
Delaware Investments refers to Delaware Management Holdings, Inc. and its subsidiaries, including the Delaware Investments Family of Funds' distributor, Delaware Distributors, L.P. Macquarie Group refers to Macquarie Group Limited and its subsidiaries and affiliates worldwide.
Delaware Investments is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia) and the firm’s obligations do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of Delaware Investments.
About Jackson Square Partners
At close, Jackson Square Partners is expected to manage equity assets of approximately $24 billion for more than 60 clients. The firm will manage U.S. and global portfolios in a concentrated fashion, emphasizing long-term business analysis. Jackson Square’s highly experienced investment team has worked together for an average of more than a decade.
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Contacts
Shareholders
Delaware Distributors, L.P.
800-523-1918
or
Media
Delaware Investments
Marlene Petter or Amy Ponticello
215-255-1427 / 215-255-1313
or
Macquarie Group
Paula Chirhart
212-231-1310