| Affiliated Managers Group, Inc. | |||
| Ticker: | AMG | Two International Place, 23rd Floor | |
| Exchange: | New York Stock Exchange | Boston, MA 02110 | |
| Industry: | Financial (SIC Code 6719) | (617) 747-3300 | |
| Type of Shares: | Common Shares | Filing Date: | 8/29/97 | |
| U.S. Shares: | 7,500,000 | Offer Date: | 11/21/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $20.00 - $23.00 | |
| Primary Shares: | 7,500,000 | Offer Price: | $23.50 | |
| Secondary Shares: | 0 | Gross Spread: | ||
| Offering Amount: | $161,250,000 | Selling: | ||
| Expenses: | - | Reallowance: | ||
| Shares Out After: | - |
| Manager | Tier | Phone |
| Goldman, Sachs & Co. | Lead Manager | (212) 902-5959 |
| Alex. Brown & Sons Incorporated | Co-manager | (410) 895-2700 |
| Merrill Lynch & Co. | Co-manager | (212) 449-4600 |
| Issuer's Law Firm: | Goodwin Procter & Hoar |
| Bank's Law Firm: | Sullivan & Cromwell |
| Auditor: | Coopers & Lybrand |
Dollar amounts in U.S. millions except for per share data | |||||
| 6 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/96 | 6/30/97 | 6/30/96 | 6/30/97 | ||
| Revenue: | $50.38 | $32.87 | $19.50 | Assets: | $114.01 |
| Net Income: | -$2.26 | $0.79 | -$0.19 | Curr Assets: | $26.03 |
| EPS: | Liabilities: | $30.61 | |||
| Prior EPS: | Curr Liabilities: | $13.12 | |||
| Cash Flow/Oper: | Equity: | $83.40 | |||
| Cash Flow/Fin: | Cash: | $13.30 | |||
| Cash Flow/Inv: | Working Cap: | $12.91 | |||
| Business Description |
| The company is a leading asset management holding company which acquires majority interests in mid-sized investment management firms. The company's strategy is to generate growth through investments in new affiliates as well as through internal growth. AMG has developed an innovative transaction structure (the "AMG Structure") which it believes is a superior succession planning alternative for growing mid-sized investment management firms.The Company believes that the AMG Structure distinguishes AMG from other acquirors of investment management firms which generally seek to own 100% of their target firms and, in many cases, seek to participate in the day-to-day management of such firms. AMG believes that the opportunity for managers of each Affiliate to realize the value of their retained equity interest makes the AMG Structure particularly appealing to managers of firms who anticipate strong future growth and provides those managers with an ongoing incentive to continue to grow their firm. |
| Competition |
| The market for partial or total acquisitions of interests in investment management firms is highly competitive. Numerous companies, both privately and publicly held, including commercial and investment banks, insurance companies, and investment management firms and holding companies, most of which have longer established operating histories and significantly greater resources than the Company, make investments in and acquire investment management firms. Certain of the Company's principal stockholders also pursue investments in, and acquisitions of, investment management firms and the Company may, from time to time, encounter competition from such principal stockholders with respect to certain investments. There can be no assurance that the Company will be able to compete effectively with such competitors, that additional competitors will not enter the market or that such competition will not make it more difficult or impracticable for the Company to make investments in investment management firms.The investment management business is also highly competitive. Each of the Affiliates competes with a broad range of investment managers, including public and private investment advisersas well as affiliates of securities broker-dealers, banks, insurance companies and other entities. From time to time, Affiliates may also compete with each other for clients. Many of the Affiliates' competitors have greater resources than any of the Affiliates and than the Company and the Affiliates on a consolidated basis. The Company believes that each Affiliate's ability to compete effectively with other firms is dependent upon the Affiliate's products, level of investment performance and client service, as well as the marketing and distribution of its investment products. |
| Business Plan |
| The company's strategy is to generate growth through investments in new affiliates, as well as through the internal growth of existing affiliated firms. With the completion if its investment in Tweedy, Browne Company LLC, the company's most recent and largest invesmtne to date, AMG has grown since its founding in December 1993 to ten investment management fims with over $40 billion in assets under management. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to reduce indebtedness and for general corporate purposes. |
| Officer Name | Title | Age |
| Sean M. Healey | Executive Vice President | 36 |
| William J. Nutt | President, Chief Executive Officer and Chairman of the Board of Directors | 52 |
| Levon Chertavian, Jr. | Senior Vice President, Affiliate Support | 38 |
| Brian J. Girvan | Senior Vice President, Chief Financial Officer and Treasurer | 41 |
| Nathaniel Dalton | Senior Vice President, General Counsel and Assistant Secretary | 31 |
| Seth W. Brennan | Vice President | 27 |
| Jeffrey S. Murphy | Vice President | 31 |