Global asset manager Affiliated Managers Group is acquiring a stake in EIG. No financial terms were disclosed. EIG’s management team will remain majority stakeholders. Also, EIG has named William C. Sonneborn as president, effective May 5, 2014. Headquartered in Washington, D.C., EIG is a private equity firm that focuses on energy and energy-related infrastructure companies.
BOSTON & WASHINGTON, D.C.–(BUSINESS WIRE)–Affiliated Managers Group, Inc. (NYSE: AMG), a global asset management company, and EIG Global Energy Partners, LLC (“EIG”) announced today that AMG is acquiring an equity interest in EIG. EIG’s management team continues to hold a majority of the equity in the company, and consistent with AMG’s partnership approach, will retain operating autonomy of the business.
EIG also announced today that William C. Sonneborn has been appointed President of EIG effective May 5, 2014.
EIG is a leading global alternative investment firm specializing in private investments in energy and energy-related infrastructure, with the longest continuous track record of any institutional investor in the industry. Since its founding in 1982, EIG has made nearly 300 portfolio investments in 34 countries on six continents, across the full spectrum of the energy sector. Headquartered in Washington, D.C., with offices in Houston, Hong Kong, London, Rio de Janeiro, Sydney and Seoul, EIG employs a disciplined long-term approach built on a deep technical understanding of the sector, and is recognized as an industry leader in providing innovative capital solutions to leading companies and projects in the energy sector. As of December 31, 2013, the firm had $15.9 billion in assets under management.
EIG has consistently delivered strong risk-adjusted returns through multiple commodity and business cycles, and invests on a global basis across the entire energy value chain, including upstream, midstream, energy-related infrastructure, power generation, renewables and resources. The firm’s diversified client base includes over 400 leading institutional investors from 20 countries, including prominent pension plans, insurance companies, endowments, foundations and sovereign wealth funds.
“With an outstanding long-term investment track record, and unmatched expertise in investing in energy and commodity markets, EIG is regarded as among the preeminent investors in the sector by sophisticated institutions and industry participants around the world,” said Sean M. Healey, Chairman and Chief Executive Officer of AMG. “Given EIG’s exceptional reputation and competitive position, we believe the firm is uniquely placed to capitalize on the increasing investment opportunities in the energy sector and generate strong organic growth, as global clients continue to seek attractive risk-adjusted ways to deploy capital in this area. Through our partnership with EIG, AMG is adding a new range of excellent strategies to our growing and diverse alternative product set. I am very pleased to welcome Blair Thomas and his partners to our Affiliate group.”
“With its unparalleled track record as a partner to leading boutique alternative firms, including a broad range of strategic capabilities through which AMG leverages its global scale on behalf of its Affiliates, AMG is the ideal permanent partner for EIG as we move into our next phase of growth and development,” said R. Blair Thomas, Chief Executive Officer of EIG. “At EIG, we have employed a very focused and disciplined investment approach for more than 30 years, and our partnership with AMG will allow us to maintain both our operating culture and investment decision-making autonomy to best serve our global client base. We are also extremely pleased to have Bill Sonneborn join our firm as President. Bill is uniquely qualified to help guide EIG through the next stage of our growth based on his prior industry experience and his familiarity with EIG from our time together at TCW.”
As part of the transaction, all of the senior professionals at EIG have agreed to long-term commitments to remain with the firm. The terms of the transaction were not disclosed, and the parties expect to complete the investment during the month of April.
About Affiliated Managers Group
AMG is a global asset management company with equity investments in leading boutique investment management firms. AMG’s innovative partnership approach allows each Affiliate’s management team to own significant equity in their firm while maintaining operational autonomy. AMG’s strategy is to generate growth through the internal growth of existing Affiliates, as well as through investments in new Affiliates. In addition, AMG provides centralized assistance to its Affiliates in strategic matters, marketing, distribution, product development and operations. As of December 31, 2013, the aggregate assets under management of AMG’s Affiliates were approximately $568 billion (pro forma for pending investments) in more than 400 investment products across a broad range of investment styles, asset classes and distribution channels. For more information, please visit the Company’s website at www.amg.com.
About EIG Global Energy Partners
EIG specializes in private investments in energy and energy-related infrastructure on a global basis. EIG is headquartered in Washington, D.C. with offices in Houston, London, Sydney, Rio de Janeiro, Hong Kong and Seoul. In 2010, EIG completed a consensual spin-out from The TCW Group, Inc. For more information, visit www.eigpartners.com.
William C. Sonneborn
Mr. Sonneborn, 44, currently serves as Senior Advisor to KKR & Co. Until October 2013, he was a member of the ultimate general partner of Kohlberg Kravis Roberts & Co. and a member of KKR’s Management Committee. Mr. Sonneborn served as CEO of KKR Asset Management (the public markets side of KKR) as well as CEO and Director of KKR Financial LLC (NYSE: KFN), a publicly-traded specialty finance and energy business. He was a member of the Credit, Mezzanine, Real Estate and Special Situations Investment Committees. Prior to joining KKR, Mr. Sonneborn was with The TCW Group, Inc., most recently as President and Chief Operating Officer and CEO of The TCW Funds, Inc.