Piper Jaffray Announces Sale of FAMCO Business
09 March 2013 - 9:43AM
Business Wire
Piper Jaffray (NYSE: PJC), a leading investment bank and asset
management firm, today announced that it has signed a definitive
agreement to sell Fiduciary Asset Management LLC (FAMCO), a
division within its asset management business. Wiley Angell, its
chief executive officer, will acquire the business in a transaction
valued at $4 million.
In 2012, Piper Jaffray transitioned ownership of its FAMCO MLP
product from FAMCO to its primary asset management subsidiary,
Advisory Research. While the restructuring generated revenue and
cost synergies for the firm, the remaining FAMCO business was no
longer a strategic fit with the overall asset management business.
As a result, Piper Jaffray and Angell entered into discussions to
facilitate a transition of the remaining business, as Angell was
one of FAMCO’s founding members.
“We continue to focus efforts on growing our flagship asset
management brand, Advisory Research, and taking steps that add
value for shareholders,” commented Andrew Duff, Piper Jaffray
Companies chairman and CEO. “Our resulting platform represents a
more streamlined business and gives FAMCO the opportunity to
operate independently.”
Commenting on the sale, Angell said “We have enjoyed our
relationship with Piper Jaffray, and we are excited about returning
to our roots as an independent company. We view this transaction as
an opportunity to continue to provide excellent services to our
clients, while incenting our team and building for the future.”
FAMCO had previously been classified as held for sale and
reported in discontinued operations. The sale is subject to
customary closing conditions, and expected to close during the
second quarter of 2013.
About Piper JaffrayPiper Jaffray is a leading investment
bank and asset management firm serving clients in the U.S. and
internationally. Proven advisory teams combine deep industry,
product and sector expertise with ready access to capital. Founded
in 1895, the firm is headquartered in Minneapolis and has offices
across the United States and in London and Zurich.
www.piperjaffray.com
About Advisory Research, Inc.Based in Chicago, Advisory
Research is a value-oriented investment firm providing domestic and
international equity strategies as well as fixed income assets for
institutional, private clients and investment advisors. Advisory
Research is a division of Piper Jaffray Asset Management Inc.
www.advisoryresearch.com
About FAMCOFiduciary Asset Management LLC (FAMCO) is an
institutional asset management firm with $3.7 billion in assets
under management. The firm is based in St. Louis, Mo. and was
established in 1994. www.famco.com
Cautionary Note Regarding Forward-Looking StatementsThis
announcement contains forward-looking statements. Statements that
are not historical or current facts, including statements about
beliefs and expectations, are forward-looking statements. These
forward-looking statements cover, among other things, the future
prospects of Piper Jaffray Companies and its asset management
business. Forward-looking statements involve inherent risks and
uncertainties, and important factors could cause actual results to
differ materially from those anticipated, including the following:
(1) the transaction may not be completed, or completed within the
expected timeframe; (2) costs relating to the disposition of the
FAMCO business may be greater than expected; and (3) other factors
identified under “Risk Factors” in Part I, Item 1A of our Annual
Report on Form 10-K for the year ended December 31, 2012, and
updated in our subsequent reports filed with the SEC. These reports
are available at our Web site at www.piperjaffray.com and at the
SEC Web site at www.sec.gov. Forward-looking statements speak only
as of the date they are made, and we undertake no obligation to
update them in light of new information or future events.
© 2013 Piper Jaffray Companies
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