EnTrust Global announced today that it has entered into a definitive agreement with Franklin Resources, Inc. (NYSE: BEN) to reacquire the 65% interest that Legg Mason, Inc. (NYSE: LM) holds in EnTrust Global. This transaction will become effective upon the consummation of Franklin Templeton's purchase of Legg Mason, which was announced this morning.
"This transaction offered us a unique opportunity for EnTrust to return to an independent structure and our roots as a private company," said Gregg S. Hymowitz, Chairman and Chief Executive Officer of EnTrust Global. "I appreciate Legg Mason and Franklin Templeton senior management's courtesy and respect during their careful consideration of this deal and their support of our interest in being a private, independent company again. Our decision to pursue this direction was based on our own strong conviction in the strength of EnTrust Global's business today, and while we will not be a part of Franklin's acquisition of Legg, we look forward to finding ways to collaborate with Franklin Templeton on joint initiatives going forward." Jennifer M. Johnson, President and Chief Executive Officer of Franklin Templeton, underscored this sentiment, sharing that, "EnTrust is an excellent business and we recognize and appreciate their desire to once again become a private company. We have appreciated their collaboration in our discussions and look forward to our ongoing relationship."
Mr. Hymowitz stated that "now is the perfect time to take our company private again as EnTrust Global is at an inflection point for meaningful growth." EnTrust currently has $21.2 billion in total assets* across over 500 institutional investors from 46 countries, with more than $11 billion in customized strategic partnerships. As a "first mover" in co-investments over ten years ago, EnTrust has deployed approximately $12 billion and remains highly active in the space. In 2015, the firm established a real assets business with the launch of its Blue Ocean strategy, which to date has raised nearly $1.6 billion of debt capital for investment in the global maritime industry; EnTrust will be expanding this platform in the coming months with the launch of an aviation finance strategy, Blue Sky. The firm also meaningfully increased its existing footprint in the liquid alternatives space through a partnership with Alma Capital Investment Management, which recently acquired DWS's Hedge Fund UCITS business.
Based on the momentum in each of these areas, and a continued commitment to the evolution of EnTrust for the benefit of investors, Mr. Hymowitz expressed his excitement and confidence in moving forward with the flexibility and autonomy afforded by an independent company structure. "Being entrepreneurial and nimble is core to the foundation on which we built EnTrust 23 years ago and represents the qualities that I believe best serve our investors. Today's announcement squarely aligns us with these core principles."
Broadhaven Capital Partners, LLC and Morgan Stanley & Co. LLC served as financial advisors to Franklin Resources, Inc., and Wilkie Farr & Gallagher LLP acted as external legal counsel. Dechert LLP served as legal counsel to EnTrust Global.
About EnTrust Global
EnTrust Global is a leading alternative asset management firm with $21.2 billion in total assets* as of December 31, 2019. Co-founded in 1997 by Chairman and CEO Gregg S. Hymowitz following his investment career at Goldman Sachs Group, Inc., the firm manages assets for over 500 institutional investors representing 46 countries and has more than $11 billion in customized strategic partnerships. EnTrust Global offers a range of alternative investment opportunities across asset classes and strategies, including co-investments, real assets, and private debt. EnTrust Global has 11 offices worldwide and is headquartered in New York and London.
About Franklin Templeton
Franklin Resources, Inc. (NYSE: BEN) is a global investment management organization operating as Franklin Templeton. Franklin Templeton's goal is to deliver better outcomes by providing global and domestic investment management to retail, institutional and sovereign wealth clients in over 170 countries. Through specialized teams, the company has expertise across all asset classes, including equity, fixed income, alternatives and custom multi-asset solutions. The company's more than 600 investment professionals are supported by its integrated, worldwide team of risk management professionals and global trading desk network. With employees in over 30 countries, the California-based company has more than 70 years of investment experience and over $698 billion in assets under management as of December 31, 2019.
About Legg Mason
Guided by a mission of Investing to Improve Lives,™ Legg Mason helps investors globally achieve better financial outcomes by expanding choice across investment strategies, vehicles and investor access through independent investment managers with diverse expertise in equity, fixed income, alternative and liquidity investments. Legg Mason's assets under management are $806 billion as of January 31, 2020.
