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Financiers back Perpetual’s $450m acquisition
G+T has advised financiers in relation to its $507 million corporate debt facilities to fund Perpetual’s Barrow Hanley acquisition.
Tony Zhang
Firms: Gilbert + Tobin (MLAUBs).
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Deal: G+T advised the Mandated Lead Arrangers, Underwriters and Bookrunners (MLAUBs) in relation to $507 million corporate debt facilities for Perpetual Limited (Perpetual).
The facilities provide certain funds commitments in relation to Perpetual’s acquisition of a 75 per cent stake in US-based asset manager Barrow, Hanley, Mewhinney & Strauss.
Value: $507 million.
Area: M&A, banking and infrastructure.
Key players: The G+T team was led by banking + infrastructure partner Robert Trowbridge, supported by lawyers James Frixou, Donovan Brown, Angus McWhirter and graduate Stephen Powell. Skadden, Arps, Slate, Meagher & Flom LLP acted as US legal counsel to the MLAUBs.
Deal significance: According to the release, Perpetual has entered into an agreement with BrightSphere Investment Group to acquire its 75 per cent interest in Barrow Hanley for $465 million.
Perpetual has said the buy will more than triple its funds under management (FUM) from $28.4 billion to $92.3 billion.
Perpetual chief executive and managing director Rob Adams commented the acquisition was “compelling”.
“It provides Perpetual with world-class investment teams, diversifies our client base by sector and geography, and presents us with significant growth opportunities in the Australian market and a formidable platform to scale our business internationally,” Mr Adams said.
After the acquisition, Perpetual’s FUM will be comprised of 14 per cent Australian equities, 48 per cent US equities (inclusive of 6 per cent from its other recent purchase, Trillium), 11 per cent global equities and 27 per cent cash and fixed income.
The acquisition is expected to see Perpetual triple its funds under management.
“We are proud to have been involved in such a transformative transaction for Perpetual and delivering for our clients, and Perpetual, within a very tight timeline,” Mr Trowbridge and Mr Frixou said.
Barrow Hanley is a diversified investment manager based in Dallas, Texas with funds under management (FUM) of approximately US$44.1 billion across 21 key strategies.
