The management of London-based fund managers Delaware International Advisers Ltd. ("DIAL") and Hellman & Friedman LLC, a leading U.S. private equity firm, announced today that they have signed a definitive purchase agreement for a management-led purchase of DIAL from Lincoln National Corporation, ("Lincoln"). The transaction will be funded by management and investment partnerships affiliated with Hellman & Friedman.
The senior management team of DIAL will have a majority equity stake in the new entity. With over $19 billion in assets under management, DIAL is among the largest managers of international and global assets for U.S. institutional investors. DIAL will continue to have an ongoing sub-advisory relationship with Delaware Investments and Lincoln National Corporation for the management of international asset classes, subject to obtaining necessary Board and shareholder approvals.
David Tilles, Chief Investment Officer and Managing Director of DIAL, stated, "This structure will provide our firm with a continued solid, stable foundation from which we can service our clients' needs in a consistent, high-quality manner as we grow our business. We have structured this transaction to minimize disruption to clients, give control of the business to the management team and provide a firm foundation from which to motivate and retain existing and future generations of professionals within the firm."
Mr. Tilles added, "We are delighted to team up with our new ownership partner, Hellman & Friedman. They already have a distinguished track record of involvement with the fund management sector and have an excellent understanding of what is required to be successful in this industry."
Matthew Barger, deputy chairman of Hellman & Friedman stated: "DIAL is an outstanding investment firm with an impeccable record of performance, a deep management team, superb investment talent and a blue chip client list. We are pleased to assist the DIAL management team in the purchase of its business from Lincoln."
Mr. Barger continued: "Not only is DIAL an ideal fit within our investment philosophy, but this investment also joins our expertise in building and supporting investment management firms with our successful long-term track record of financing seasoned management teams ready to help move their companies to the next phase of their development."
Hellman & Friedman's previous involvement with the asset management industry includes the following prominent investment concerns: Brinson Partners, Inc., Franklin Resources, Inc., Farallon Investment Management LLC, Oechsle International and Artisan Partners Limited Partnership.
Hellman & Friedman's previous involvement with European companies includes Formula One Holdings, Axel Springer, and ProSieben Sat.1 AG. This is Hellman & Friedman's third European transaction in the past year.
About DIAL
Founded in 1990, the London-based firm is a value-oriented, international equity and fixed income manager serving primarily institutional clients. Prior to this transaction, DIAL was a wholly-owned subsidiary of Lincoln, a U.S.-based financial services company operating under the marketing name of Lincoln Financial Group. Lincoln has owned DIAL since 1995, when it acquired DIAL's parent company, Delaware Management Holdings, Inc. The new firm will continue to follow a disciplined, value-oriented investment philosophy, which has generated a consistently impressive track record of long-term performance, with less volatility than benchmark indices and most other institutional managers. The firm has 90 employees.
About Hellman & Friedman LLC
Hellman & Friedman LLC is a San Francisco-based private equity investment firm with additional offices in New York City and London. Since its founding in 1984, the Firm has raised and managed approximately $5 billion of committed capital and invested in approximately 50 companies. The Firm's strategy is to invest in superior business franchises and to be a value-added partner to management in select industries including media, financial services, professional services, and information services. Representative investments include Axel Springer AG (ASV GR), ProSieben Sat.1 AG (PSM GR), Formula One Holdings, Ltd; the NASDAQ Stock Market, Inc. (NDAQ); Young & Rubicam, Inc.; Arch Capital Group Limited (ACGL); Voicestream Wireless Corporation; Western Wireless Corporation (WWCA); Eller Media Company, Inc.; Franklin Resources, Inc. (BEN); and others. For more information on Hellman & Friedman, visit www.hf.com.