SouthernSun Asset Management acquires controlling interest from outside shareholders
August 24, 2010 – SouthernSun Asset Management, a research-driven investment management firm implementing Small Cap, SMID Cap, and Global Equity investment strategies, today announced that it has acquired the interests of several outside shareholders to become majority employee-owned. Rosemont Investment Partners, a private equity boutique focused exclusively on making investments in asset management companies, provided capital for the transaction.
“This transaction allowed us to accomplish two goals: achieving majority employee-ownership and providing equity to a broader group of key SouthernSun employees,” said Michael W. Cook, founder, CEO, and Chief Investment Officer of SouthernSun. “Maintaining independence and motivating our employees through equity participation strengthens the alignment between the firm and our clients.”
In exchange for providing capital for the transaction, Rosemont has acquired a limited-term minority interest in SouthernSun.
Genie Logue, Vice President of Rosemont, added: “We are excited to partner with this accomplished group of professionals at SouthernSun. We’ve come to know and respect the investment process and discipline of the team over the years and we look forward to working with them as they continue to grow the Company and serve their clients’ needs.”
Terms of the transaction were not disclosed.
Based in Memphis, TN, SouthernSun Asset Management manages over $1.3 billion in assets across a diverse group of institutional and high net worth clients. The firm specializes in managing U.S. Small Cap, U.S. Small/Mid Cap, and Global Equity strategies, using a concentrated, absolute return, fundamentally-based approach to portfolio management. Led by founder, CEO and Chief Investment Officer Michael Cook, the team’s on-the-ground, research-intensive investment process seeks to identify a small number of attractively valued companies with three primary characteristics: niche dominance, financial flexibility, and management adaptability. This same investment philosophy and process has been in place since Michael Cook founded the firm in 1989.
On a total return, net of fee basis through June 30, 2010, SouthernSun’s Small and Small/Mid Cap Equity strategies have outperformed the Russell 2000 and Russell 2500 respectively for 1, 3, 5, and 10 year annualized periods, and remain positive for 5 and 10 years compounded. Additionally, SouthernSun is ranked in the top 5% for all U.S. Small/Mid Cap Core equity managers over 10 years by the eVestment Alliance database. The firm is also ranked in the top 10% for all U.S. Small Cap Core equity managers over 10 years by eVestment. Peer universe rankings are cited on a gross of fee basis and past performance is no guarantee of future results.
About Rosemont Investment Partners, LLC
Rosemont Investment Partners, LLC is a private equity firm focused exclusively on making investments in asset managers. Rosemont was formed in May 2000 to provide capital to fund management buyouts, recapitalizations and selected start-ups in the asset management industry. In addition to providing capital, the principals of Rosemont assist management in growing their companies by leveraging their decades of experience in advising asset management businesses. SouthernSun is Rosemont’s 20th investment.
About SouthernSun Asset Management, LLC
SouthernSun Asset Management, LLC is a boutique investment firm that provides investment management services to public and private pension plan sponsors, corporations, foundations and endowments, and high net worth investors. The Company was founded in 1989 by Michael Cook, who continues to serve as the firm’s CEO and Chief Investment Officer for all publicly traded investment strategies. SouthernSun’s investment products are managed as separate accounts and in a mutual fund. For more information, please visit http://www.southernsunam.com and http://www.southernsunfunds.com.