Putnam Lovell backs Berkeley Capital MBO

Putnam Lovell NBF Private Equity has led a management buyout of Berkeley Capital Management from insurance group London Pacific.

(PrivateEquityCentral.net) Putnam Lovell NBF Private Equity, the private capital affiliate of National Bank Financial, has teamed with management of Berkeley Capital Management to back the unit’s buyout from insurance provider London Pacific Group.


Berkeley Capital, a wholly owned subsidiary of London Pacific, manages approximately $1.1bn in capital. The purchase price consists of $7.75m in cash to be paid at closing. A further $1m cash installment will be paid at the end of 2003, with an additional $1.25m of cash earn-out payments to be paid by the buyer.


Berkeley, which will continue to sub-advise assets for London Pacific, focuses on dividend equity, growth equity, and fixed income products. London Pacific agreed to the management buyout to allow it to focus on the private equity arena.


“First and foremost, we were looking for an investment in the managed accounts space, specifically one with a wire house business,” Cameron Miller, a principal at Putnam Lovell, said. “Managed accounts are one of the fastest growing parts of the money management business.”


Berkeley’s management have managed money successfully for a long time with its top people together for nearly 30 years,” Miller added.


Berkeley’s main product is a dividend equity product that has become increasingly attractive because of the proposed cutting of the dividend tax, Miller said. The product also offers less volatility.


Putnam Lovell NBF Private Equity is focused on the financial services industry. Its primary target segments within the financial services industry are: asset management, financial planning, and eFinance. Its secondary target segments are financial product distribution and financial software applications and systems. The firm looks to invest an average of $10m per transaction with a range of $5m to $20m.