Case Studies
eSecLending's sale to TA Associates
Announced: March 2006
Closed: May 2006
The Challenge
eSecLending, a global securities lending manager widely regarded as an industry pioneer in the securities lending business, began as a small investment within an affiliate of Old Mutual PLC's U.S. money management operation. As eSecLending expanded it became apparent that securities lending would not be a core business of Old Mutual, an insurance company and asset manager, and would be sold at some future date. With the success of eSecLending as a stand-alone business, Old Mutual and eSecLending management thought it best to find a more suitable home for future growth, thereby also allowing Old Mutual to achieve a significant gain on its original investment. To find the solution, Putnam Lovell was retained as financial advisor.
The Solution
Old Mutual's majority investment in eSecLending was effectively sold via a leveraged recapitalization of eSecLending by TA Associates, a $10 billion private equity firm specializing in investing in companies in technology, financial and business services, healthcare, and consumer industries.
Results
Embedded value was captured for Old Mutual's shareholders. eSecLending was transformed into a stand-alone company, able to leverage TA Associates' network of institutional investors and TA's expertise in the investment management sector.
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