BrightSphere Investment Group Inc. Announces Agreement to Sell Affiliate, Thompson, Siegel and Walmsley LLC
BrightSphere Investment Group Inc. (NYSE: BSIG) today announced that it has entered into a definitive agreement to sell its 75.1% ownership interest in Thompson, Siegel Walmsley LLC (“TSW”) to Pendal Group Limited (”Pendal") for $240 million. As part of the transaction, Pendal will additionally acquire the 24.9% ownership interest in TSW held by the TSW management team, resulting in Pendal acquiring 100% of TSW for total consideration of approximately $320 million.
In addition to acquiring BrightSphere’s equity interest in TSW, Pendal has also agreed to acquire BrightSphere’s seed capital in TSW strategies, which had a book value of approximately $14 million as of April 30, 2021. BrightSphere anticipates total after-tax proceeds from the transaction of approximately $196 million, including proceeds from the return of its seed capital.
The transaction is subject to customary regulatory approvals and closing conditions and is anticipated to close in the third quarter of 2021.
Suren Rana, BrightSphere’s President and Chief Executive Officer said, “This transaction unlocks significant value for BrightSphere’s shareholders given the valuation received in the transaction relative to our stock’s current trading levels. We expect to use the proceeds from this divestiture primarily to pay down debt and return capital to our shareholders. Our remaining business now predominately comprises Acadian, a highly diversified and differentiated manager providing best-in-class quantitative strategies and solutions to its clients.”
“We are pleased that TSW will be joining a highly reputed, global organization that is committed to supporting TSW in their continued growth. We are thankful to the TSW team for their important contributions to BrightSphere and wish them the best in their future initiatives.” Mr. Rana added.
Founded in 1969, TSW applies a value-oriented investment approach across a range of products in U.S. and international equities, fixed income and alternative investments. TSW’s singular objective is to outperform its benchmarks, net of fees, over rolling three- to five- year periods. As of March 31, 2021, TSW had $24.9 billion in assets under management, and for the year ended December 31, 2020, contributed GAAP net income attributable to controlling shareholders and Adjusted EBITDA to BrightSphere of $22.1 million and $25.2 million, respectively.1