Perella Weinberg Partners Asset Based Value Strategy, a division of Perella Weinberg Partners, will sell railcar leasing company Flagship Rail Services to Japan’s Sumitomo Mitsui Banking Corporation in a transaction valued at $1.1 billion.
A return multiple for the exit was not disclosed, but a source familiar with the matter said the firm would receive about $450 million for the company, representing more than a 2x return. Perella Weinberg acquired Flagship Rail in May 2011 when it operated as the rail services division of AIG. During the holding period, Perella Weinberg transitioned the company to a standalone business and helped increase Flagship Rail’s fleet by more than 50 percent, according to a statement.
Perella Weinberg’s asset based value strategy is led by partner David Schiff and focuses on asset-based investments including auto and commercial loans, royalty streams associated with intangible property, and real assets. The division manages more than $2.2 billion in equity capital through a number of investment vehicles.
Perella Weinberg Partners invests on behalf of pension funds, endowments, foundations, sovereign wealth funds, family offices, high net-worth individuals and fund of funds.
The firm’s asset management arm invests in private equity, both directly and through funds managed by third-party fund managers.