LETTER FROM DAN MANNIX, CEO
29 October 2019
We are writing to advise you that Schroders are selling their minority equity interest in RWC Partners back to the organisation and to Lincoln Peak Capital. The transaction reaffirms our commitment to long-term ownership, stability and independence which we believe are critical to RWC remaining a dynamic organisation ideally placed to meet our clients’ needs for the next decade and beyond.
The characteristics we looked for in our new Partner are:
- A deep understanding of and belief in RWC’s approach; particularly in relation to our investment teams and clients. We looked for a shareholder who will support the autonomy we offer our people, as we believe it leads to better outcomes for all stakeholders;
- A commitment to owning equity in RWC for a very long period of time. We see significant advantages to the organisation and our clients through having a stable shareholder base. Our new Partner needs both the philosophical belief and ability to meet this objective;
- A reputation, expertise and standing that will significantly contribute to RWC’s future;
- A belief that RWC is best governed by a board that has the autonomy to set strategic and financial priorities for the best interests of its clients, people, other stakeholders and shareholders.
Lincoln Peak are based in Boston, USA and are a dedicated minority investor in specialist asset management organisations. They provide extensive industry experience and are aligned with our belief that asset management organisations should be stable, independent and private. I have known Seth Brennan and Tony Leness, the founders of Lincoln Peak, for over 7 years. Seth, Tony and their team have been involved in a number of asset management companies and Lincoln Peak currently owns interests in 6 companies with over $70bn in AUM.
Over the time we have known Lincoln Peak, RWC has grown from $5bn to $18bn of assets under management. We have grown from 60 to over 150 people, and our strategies have become ones formed around strong leadership and institutional quality processes and people. Seth, Tony and their team have a genuine interest in supporting the creation of long-term organisations and we look forward to having their involvement in RWC.
In total 46% of RWC’s equity is being sold. Lincoln Peak will purchase 28% of RWC’s equity with RWC’s people owning almost all of the remaining equity. Our board will be led by Peter Clarke as Chairperson with 5 Directors appointed by RWC and 2 Directors appointed by Lincoln Peak. The transaction is subject to normal regulatory applications and approvals which we expect to take up to 4 months.
We would like to take this opportunity to thank Schroders for the support they have shown as a shareholder. In particular we would like to thank Nicky Richards who has been a supportive and engaged Chairperson for 4 years and Roger Goodchild who has been a Director of RWC since Schroders bought their stake in 2010.
It is invigorating to be making a long-term commitment to our future. We take the ownership structure of the organisation very seriously as it provides the foundation that aligns the organisation’s duration with those of our clients and we are pleased to be reinforcing our future as an independent, private organisation.
We hope you share our belief that RWC is best able to meet our clients’ needs by committing to the stability and focus of our organisation. We look forward to talking to you in the near future and answering any questions you may have.