CONSHOHOCKEN, PA, January 2, 2009 – Rosemont Investment Partners, LLC (“Rosemont”) is pleased to announce that it has completed an investment in Lateef Investment Management, LP (“Lateef” or the “Company”). Lateef’s management team will continue to own a significant majority stake in the Company and Rosemont, a private equity boutique focused exclusively on making investments in asset management companies will own a minority stake. Rosemont’s investment is being used primarily to recapitalize a minority interest and to provide a mechanism for future equity transfers. Rosemont’s investment is not a change of control, and there are no changes to the team or management structure at Lateef.
Lateef manages approximately $2.9 billion primarily in an All-Cap Growth equity product through separate accounts and the Lateef Fund (LIMAX) for a client base that consists of corporations, foundations and endowments, family offices and high net worth individuals. The Company’s investment process seeks to achieve absolute returns and preserve capital while outperforming the S&P 500 index. Through year-end 2008, the Company’s All-Cap Growth product had outperformed the S&P 500 for 1, 3, 5, 10 and 15 year periods, and remained positive for 5, 10 and 15 years compounded. Lateef is ranked in the top 1% for all US domestic equity managers over 10 years by the PSN database1.
Lateef was founded in 1974 in the San Francisco Bay area and has employed a research-intensive, multi-cap, growth-at-a-reasonable-price investment process that results in a highly concentrated (15-20 stocks) portfolio. The team’s investment process identifies companies with superior growth characteristics based on 25 business, management and valuation criteria. Lateef’s four person investment team is supported by an eighteen person team of professionals and staff involved with client service, marketing, operations and compliance. Eight of Lateef’s twenty-two employees are shareholders following this transaction.
Ryan Willson, Lateef’s Chief Executive Officer, commented that: “The Lateef team that is currently in place has succeeded at managing portfolios and growing client relationships for many years. This recapitalization provides a mechanism for us to continue to motivate and align our employees’ interests with those of our clients for the foreseeable future”. David Silvera, Managing Director of Rosemont, added: “We are excited to partner with the accomplished group of professionals at Lateef. 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.
About Lateef Investment Management, LP
Lateef Investment Management, LP is a boutique investment firm that provides investment management services to public and private pension plan sponsors, corporations, foundations and endowments, family offices and high net worth investors. The Company was founded by Khateeb Lateef in 1974 and has employed a consistent growth-at-at-reasonable price investment process for over 30 years. Lateef’s investment products are managed as separate accounts and in a mutual fund. For more information, please visit http://www.lateef.com.
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.
1 PSN (Plan Sponsor Network) and Informa Investment Solutions has approximately 2,000 investment managers participating in the PSN database, which covers more than 10,000 investment products. Managers range in size and capabilities, but all are interested in sharing their data in an effort to increase their exposure to investment decision-makers.