CONSHOHOCKEN, PA, April 2, 2004 – Rosemont Investment Partners, LLC today announced that it had sold its interest in Charlotte Capital, LLC to Sanders Morris Harris Group Inc. (NASDAQ: SMHG). Rosemont acquired its stake in Charlotte in October 2000 when it teamed with management in a buyout of the departing president of Charlotte’s predecessor firm, Capital Technology, Inc. Employees of Charlotte Capital will retain their 31% interest in the Company and will have the opportunity to expand their ownership interest over time.
Based in Charlotte, North Carolina, Charlotte Capital manages approximately $400 million in small and small-mid cap value equity products on behalf of a predominantly institutional client base. Since its formation through the Rosemont-sponsored buyout, Charlotte has grown its client base and significantly outperformed the relevant indices for its small and small-mid cap value equity products. “The entire Charlotte team remains committed to providing disciplined investment products and outstanding service to its clients. The affiliation with Sanders Morris will enhance Charlotte’s ability serve its institutional client base while providing an opportunity for growth in other channels.” said David Silvera, Managing Director of Rosemont Partners.
All employees of Charlotte are expected to continue with the Company, which is led by Ron Saba as Chief Investment Officer and Rob Mathai as Chief Operating Officer. “We have enjoyed our affiliation with Rosemont, which provided capital and strategic guidance to our firm during a critical period in our evolution.” said Mathai, “We are excited to begin the next chapter in our firm’s development in association with SMHG, which will enable us to enhance our services to existing clients and provide a solid platform for future growth.”
About Rosemont Investment Partners, LLC
Rosemont Investment Partners, LLC is the General Partner for private equity funds that make minority investments alongside dynamic, motivated management teams in the investment management industry. Rosemont employs its industry expertise and works alongside those management teams to further the growth of Rosemont’s investments. Charlotte Capital is one of seven investments that Rosemont Partners I, L.P. has made; the Fund’s portfolio companies now manage approximately $12.8 billion in assets under management.
About Sanders Morris Harris Group Inc.
SMHG is a diversified financial services holding company based in Houston, Texas. It provides investment banking services and manages over $7.5 billion in client assets. Its operating entities are Sanders Morris Harris, Salient Partners/Pinnacle Trust, SMH Capital Advisors, Inc. and Kissinger Financial Services. Additional information is available at http://www.smhgroup.com.