Lightyear Capital has agreed to sell RidgeWorth Holdings LLC, the holding company for asset manager RidgeWorth Capital Management, for $472 million. The buyer is Virtus Investment Partners Inc. RBC Capital Markets LLC and Davis Polk & Wardwell LLP provided financial advice to RidgeWorth on the transaction while Barclays Capital and Morgan Stanley & Co. LLC did likewise for Virtus.
New York, NY, December 16, 2016 – Investment funds affiliated with Lightyear Capital LLC (“Lightyear”), a New York-based private equity firm focused on financial services investing, today announced a definitive agreement to sell RidgeWorth Holdings LLC, the holding company for RidgeWorth Capital Management LLC (“RidgeWorth”), a multi-boutique asset manager, to Virtus Investment Partners Inc. (NASDAQ: VRTS) (“Virtus”), a multi-manager asset management business, for $472 million. The transaction is not subject to financing and is subject to customary closing conditions.
Investment funds affiliated with Lightyear purchased RidgeWorth from SunTrust Banks, Inc. in May 2014. RidgeWorth is an investment management firm that offers investors access to a select group of investment managers and subadvisers. As of September 30, 2016, it had approximately $40.2 billion in assets under management. RidgeWorth has three wholly owned boutiques serving both its institutional and retail clients: i) Seix Investment Advisors LLC, a diversified fixed income manager; ii) Ceredex Investment Advisors LLC, a domestic value equity manager; and iii) Silvant Capital Management LLC, a domestic growth equity manager. RidgeWorth boutiques manage their investment processes autonomously while benefiting from the support of centralized administrative and operational support infrastructure, including trading, compliance, technology, accounting, retail distribution, and marketing. Virtus plans to operate these three boutiques separately and to enable them to continue their individual investment strategies.
Mark F. Vassallo, Managing Partner of Lightyear, said, “It has been a pleasure working alongside the RidgeWorth management team to build its platform. We are pleased with the progress the firm has made and the outcome of our funds’ investment in the company. We are confident RidgeWorth will continue to be successful as part of the Virtus organization and has a bright future ahead.”
Ashi Parikh, Chief Executive Officer and Chief Investment Officer of RidgeWorth, stated “Lightyear has helped enable us to create the infrastructure needed to support an asset management-only firm. We are grateful for Lightyear’s support over the past few years to help grow the business and view joining Virtus as an excellent opportunity to continue building a company that is well-positioned to meet the evolving and global needs of both clients and intermediary partners.”
RBC Capital Markets LLC and Davis Polk & Wardwell LLP advised RidgeWorth as financial advisor and legal counsel, respectively, in connection with this transaction. Barclays Capital and Morgan Stanley & Co. LLC acted as financial advisors to Virtus, and Willkie Farr & Gallagher LLP was the legal advisor to Virtus in connection with this transaction.
About RidgeWorth Investments:
RidgeWorth Investments—a global investment management firm headquartered in Atlanta, Georgia with approximately $40.2 billion in assets under management as of September 30, 2016—offers investors access to a select group of boutique investment managers and subadvisers. RidgeWorth wholly owns three boutiques: Ceredex Value Advisors LLC, Seix Investment Advisors LLC, and Silvant Capital Management LLC, and holds a minority ownership in Zevenbergen Capital Investments LLC. WCM Investment Management and Capital Innovations, LLC serve as subadvisers to the RidgeWorth Funds. Through these six investment managers, RidgeWorth offers a wide variety of fixed income and equity disciplines, providing investment management services to a growing client base that includes institutional, individual, and high net worth investors. For more information about RidgeWorth, its boutiques and its subadvisers, visit ridgeworth.com.
About Lightyear Capital LLC:
Lightyear Capital is a financial services-focused private equity firm based in New York. Lightyear, through its affiliated private equity funds, makes primarily control investments in North America-based, middle-market financial services companies. Lightyear targets investments across the financial services spectrum, including asset management, banks, brokerage, financial technology, insurance, and specialty finance. The firm brings unique strengths and discipline to its investment process, as well as operating, transaction, and strategic management experience, along with significant contacts and resources beyond capital. For more information, please visit www.lycap.com.