Case Studies
Coast Asset Management LLC sale of a minority interest to Summit Partners, L.P.
Announced: July 2005
Closed: July 2005
The Challenge
Coast Asset Management LLC, a Santa Monica, California-based alternative investment manager with more than $5.5 billion of assets under management and more than $3 billion in multi-manager funds of hedge funds under management, sought to grow its asset base by partnering with an investor, and to partially liquidate and diversify the net worth of Coast principals. To accomplish the tasks, Putnam Lovell was hired as financial advisor.
The Solution
Coast sold a minority ownership interest to Summit Partners, L.P., a leading private equity and venture capital firm with a blue chip roster of institutional investors and high-net-worth relationships. The transaction was Summit's first foray into the rapidly growing alternative investment management industry and Coast matched Summit's criteria of investing in profitable, rapidly-growing companies with strong management teams.
Results
Summit led the $126.8 million investment and holds a stake equal to approximately one-third of the firm, valuing Coast at more than $380 million. The transaction provided Coast with access to Summit's investors and relationships. It offered a reliable stream of investment capital to Coast to fund potential acquisitions and emerge as a leader in a consolidating market of hedge fund and hedge fund of funds firms.
All transactions, case studies, presentations and other banking activities prior to Jefferies' July 2007 acquisition of Putnam Lovell were represented by Putnam Lovell Securities NBF, Inc.
Transactions