SHEUMACK GMA

In this week's SGMA Midweek TCA Flash, our RRA Team highlights and underscores the continued quest of traditional asset managers to further penetrate the private credit asset class and accelerate AUM growth in the private markets and alternative asset management strategies, generally speaking. In this case, incumbent Janus Henderson Group plc (NYSE: JHG / $7.0B EMC / $360B AUM) announced in August its entry into an agreement to acquire Chicago based Victory Park Capital and an affiliate (Private / $6.0B AUM), a 20-year specialist in asset backed, consumer and real estate finance related investment strategies, taking its alternatives-based AUM to ~$15B, still relatively small compared to the overall JHG franchise (~$320B) but nonetheless accelerating. VPC’s established network of institutional investors including insurance companies and its proprietary deal/investment origination channel were of particular appeal to JHG. The transaction closed recently (Q4, 2024).   From a transaction structure viewpoint, JHG acquired a 55% interest in VPC’s equity ownership. Principals of VPC remain closely aligned with their new strategic investor. Further, VPC principals retained 100% of carried interests associated with legacy funds and will continue to have significant (though less than 100%) exposure to all future funds. Adding to both the strategic connective tissue and future business alignment: (i) JHG agreed to provide seed funding for future fund strategies; (ii) the transaction consideration included closing consideration as well as earn-out based (i.e. deferred) consideration; (iii) the consideration package was structured to include both cash and JHG common stock, and; (iv) the transaction included a call option, providing JHG the right to acquire up to 100% (i.e. all remaining equity interests not acquired at the closing) of VPC, an option we expect will be exercised in the future. Structured in this manner, the transaction highlights alignment of interests of and among acquirer/investor and seller/target through BOTH the equity purchase (i.e. “corporate transaction”) itself and through the ongoing business integration plan (i.e. “business transaction”). Increasingly, we see in the industry and are involved as advisors ourselves in a growing number of transactions involving partial initial acquisitions in conjunction with carefully engineered strategic collaboration agreements. This is one such example. YOUR SUCCESS = OUR MISSION SHEUMACK GMA The Global Financial Services Industry and Market Structure Specialists

After several years of executing aggressively and effectively on a North American and Australasian asset and wealth management consolidation program, the senior leadership team of Canada’s CI Financing Corp. (TSX: CIX), with more than 30 acquisitions under its belt and an international platform comprising more than 3,000 employees and client assets under management, advisement and administration of more than $535B, is along with its sponsor Mubadala Capital, demonstrating high conviction in both the sizable global growth opportunity (still) available AND that it and CI will be best able to seize on this opportunity as a closely-held (i.e. private) company. In this week’s installment of the SGMA MidWeek TCA Flash, we provide vivid insights on the valuation parameters, transaction structure and strategic rational of this ~$4.7B sponsored take-private transaction in the hotly-contested global wealth management sector.  The Global Financial Services Industry and Market Structure Specialists YOUR SUCCESS = OUR MISSION

The SGMA Global Financial Markets HeatMap (December 2024 Edition) A RIPPING MONTH! U.S. equity markets posted the best monthly returns of 2024 in November with the S&P500, Nasdaq, and Dow Jones Industrial Average each advancing more than 5%. Two days following the November 5 U.S. general election which culminated in former President Donald J. Trump (R) becoming the first comeback U.S. President (#45 and #47) since Grover Cleveland (D) (# 22 and 24), Federal Reserve Chair Jerome Powell spoke of the progress made in maximizing employment and stabilizing prices as he announced the FOMC’s decision to lower the federal funds rate 25bps to 4.50 – 4.75%, continuing an easing cycle commenced in September. While Chair Powell affirmed that “the election will have no effects on our policy decisions as we don't know what the timing and substance of any policy changes will be,” the popularity of the risk-on trade only increased through November as the Red-Wave materialized via the GOP’s ascension to a majority in both the U.S. Senate and House of Representatives. Fueling U.S. equity market performance, in our opinion, was and is the expectation of business-friendly(ier) policies, softer-touch regulation (note the performance of U.S. bank stocks!), augmented U.S. corporate earnings growth via higher levels of corporate deal-making, and; strong net capital inflows from overseas markets having a “piling on” effect on the demand for U.S. equities. In our view, both November and the YTD period highlight once again our long-held view that the U.S. is, from a capital markets structure point of view, the undisputed and default “World Liquidity Pool.” The degree of conviction in a “buy America” strategy demonstrated by both domestic and foreign investor segments is both manifestly evident and especially resonant today in the presence of what appears to us to be generational geopolitical tensions, serious regional conflicts, rising nationalism, and even the signaling from the incoming administration of probable (and potentially exacerbating) punitive protective trade measures. Enjoy this edition of the SGMA GFM HeatMap. Your Success = Our Mission

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SGMA Principles: Integrity => Alignment => Analysis => Advice => Solutions

SGMA Principles: Integrity => Alignment => Analysis => Advice => Solutions